Datasets:
WHATX
/
ESG_Report

Dataset card Data Studio Files
xet
 Community
text
stringlengths
0
7.73k
In the medium to long term, significant emissions reductions are expected to be achieved in the NZE 2050 scenario by switching to low-carbon fuels such as biofuels, hydrogen, and ammonia2.
If the uptake of fuel switching or adoption of other measures to optimise operational efficiency do not occur quickly enough, we recognise that achieving our targets may become unlikely. However, were this to occur, we anticipate that shipping scenarios would be adjusted to reflect a longer time horizon and we may upda...
1. Review of Maritime Transport 2022 | UNCTAD. 2. Net Zero by 2050 – A Roadmap for the Global Energy Sector.
SHIPPING (CONTINUED)
Overview.
Governance.
Strategy.
Risk Management.
Metrics and Targets.
Sectoral metrics and targets.
Sector exposures.
Our approach to sectoral pathways.
Pathways performance dashboard.
Energy sector.
Transport sector.
Manufacturing sector.
Buildings sector.
Large Institutional Agribusiness Customers.
Total lending portfolio.
Appendix.
Assurance opinion.
ANZ 2023 Climate-related Financial Disclosures 62
12.0 10.0 6.0 8.0 4.0 2.0 0.
International Aluminium Institute 1.5°C Pathway 2030 Target Pathway (-30%) Actual Performance Against our Target.
ANZ vs. pathway +13%
Global Average International Aluminium Institute 1.5°C Pathway 2050 2022 2024 2026 2028 2032 2034 2036 2038 2030 2042 2044 2046 2048 2040 2021 2023 2025 2027 2029 2033 2035 2037 2039 2031 2043 2045 2047 2049 2041.
GHG Intensity (tCO2-e/t Aluminium)
Graph 5.1: Aluminium.
Aluminium Metrics Summary.
Metric 2021 2022 2023.
Emissions Intensity tCO₂-e/t aluminium 8.30 7.64 8.73.
Absolute Financed Emissions MtCO₂-e 0.741 0.642 0.53.
Portfolio-wide Intensity kgCO₂-e/$ lent 1.153 0.934 0.77.
Data Quality Score5 2.78 2.90 2.50.
Current EAD $bn (% of Group EAD) 0.68 (0.06%) 1. This is a restatement of the 2021 Absolute Financed Emissions we reported in 2022 of 0.62 MtCO₂-e. 2. This is a restatement of the 2022 Absolute Financed Emissions we reported in 2022 of 0.74 MtCO₂-e. 3. This is a restatement of the 2021 Portfolio-wide Intensity we repor...
The key design choices we used in calculating our emissions intensity reduction target for our aluminium production financing activities are summarised in Table 5 below.
Table 5 – Key design choices in calculating 2030 aluminium production financed emissions target 2030 Target • 30% reduction in emissions intensity from 2021 baseline.
ANZ Customers Included • Companies that own or operate one or more alumina refineries or aluminium smelters6 • Customers above are included where ANZ’s exposure is at least $1 million.
Emissions Included • Scope 1 & 2 emissions7.
Metric • Emissions intensity of aluminium production (tCO₂-e/t aluminium)
Financing Activities Included • Exposure at default. This represents the Group's exposure to each sector based on APRA’s calculation formula which includes total committed loans (drawn plus a proportion of off-balance sheet exposures as specified by APRA)
Attribution Approach • Portfolio-weighted approach (measures ANZ’s financing to customers relative to ANZ’s total financing to the aluminium sector)
Benchmarking Scenario • International Aluminium Institute (IAI) 1.5ºC scenario8.
Key External Data Sources • Customer disclosures • Wood Mackenzie • Transition Pathways Initiative • International Aluminium Institute.
Aluminium.
MANUFACTURING.
The information in this section should be read together with our disclaimer and important notices available here and our Financed Emissions Methodology available here.
Overview.
Governance.
Strategy.
Risk Management.
Metrics and Targets.
Sectoral metrics and targets.
Sector exposures.
Our approach to sectoral pathways.
Pathways performance dashboard.
Energy sector.
Transport sector.
Manufacturing sector.
Buildings sector.
Large Institutional Agribusiness Customers.
Total lending portfolio.
Appendix.
Assurance opinion.
ANZ 2023 Climate-related Financial Disclosures 63
Our 2021 portfolio baseline of 8.30 tCO₂-e/t aluminium is below the 2021 global average of 10.29 tCO₂-e/t aluminium.1.
Our aluminium producing customers made strong, early progress to reduce the emissions intensity of production (Graph 5.1). However, in 2023 the emissions intensity of our aluminium production portfolio increased by 5% from our 2021 baseline to 8.73 tCO₂-e/t aluminium.
Graph 5.2 highlights the drivers of this emissions intensity increase. The portfolio changed, with a decrease in exposure to a customer with a relatively 8.00 9.00 10.00.
ANZ 2021 ANZ 2022 Portfolio Change1 Customers' Climate Performance.
ANZ 2023 ANZ 2030 target 7.00 6.00 5.00 4.00 2.00 3.00 1.00 0
8.30 7.64 1.16 (0.07) 8.73 5.79.
Increase Decrease Total.
GHG Intensity (tCO2-e/t Aluminium)
Graph 5.2 – Aluminium portfolio emissions intensity movements 1. Includes changes in exposure as well as APRA's new regulatory capital framework for Australian banks effective from 1 January 2023. This resulted in changes in the credit risk capital that ANZ is required to set aside in respect of different products and ...
Performance against target low emissions intensity, coupled with an increased exposure to a customer with a relatively high emissions intensity. Customers’ climate performance did not significantly improve year-on-year.
Our aluminium absolute financed emissions and portfolio wide emissions intensity have decreased year on year due to reduced alumina and aluminium production and changes in the portion of customers emissions attributed to us based on customers’ enterprise value or FX movements.
Actions to achieve 2030 target.
A small number of customers (less than 10) make up a material portion of our exposure to this sector. As our emissions intensity target is based on a portfolio-weighted metric, we intend to prioritise financing projects and customers producing aluminium at an average intensity below our 2021 baseline portfolio average ...
We have begun, and will continue, to engage with customers to understand their transition plans, emissions reduction targets and how we can assist these customers transition towards lower emissions aluminium production.
Opportunities for emissions reduction and challenges.
Aluminium is strong, light weight and recyclable, and accounts for approximately 2% of total global emissions.2.
Our choice of an emissions intensity target recognises that aluminium will be a key material used in technologies essential for the transition to net zero emissions. Industry scenarios aligned with the Paris goals predict global demand for primary aluminium is expected to increase by up to 40% and secondary (recycled) ...
Primary aluminium production is highly electricity intensive. Efforts to decarbonise the sector will be heavily reliant on decarbonisation of the electricity supply and several of our customers have either set, or have stated that they are committed to setting, targets or net zero commitments.
Secondary production of aluminium via electric arc furnace has a significantly lower emissions intensity than primary production, but is limited by scrap availability.
Limiting the use of aluminium in final products is a key step to reduce emissions from the sector for example though: • ‘light weighting’ (design upgrades to manufacture components with the same performance standard using less material); and • efficiency in design.
Investment in the commercialisation of currently expensive technologies such as carbon-free anodes,3 is important to eliminate the harder to abate emissions of the sector.
1. International Aluminium Institute – Aluminium Sector Greenhouse Gas Pathways to 2050, September 2021. 2. Mission Possible Partnership – Making Net-Zero Aluminium Possible, April 2022. 3. Elysis is a technology that replaces traditional carbon anodes (large carbon blocks which conduct electricity during aluminium sme...
ALUMINIUM (CONTINUED)
Overview.
Governance.
Strategy.
Risk Management.
Metrics and Targets.
Sectoral metrics and targets.
Sector exposures.
Our approach to sectoral pathways.