How is sustainable finance powering our transition to net zero? In this NABERS + CBD Conference breakout session a panel of experts discussed sustainable finance, taxonomies, reporting, the impact it’s making and what that means for you.
Billions of dollars are required to electrify our building stock, eliminate embodied carbon and accelerate the race to net zero. What role do banks and financial institutions play? And how can NABERS' finance criteria support the shift?
The next iteration of the NABERS Sustainable Finance Criteria is currently in development. First launched in 2022, the Criteria document provides pathways to demonstrate eligibility for green loans for building upgrades and high performing assets. NABERS’ work has been “revolutionary” for banks because it makes comparisons easy, said Tania Smith, Executive Director Sustainable Finance at Commonwealth Bank Australia.
NABERS is currently expanding the guidance to new building types, to water and waste efficiency, and to align with the new Australian sustainable finance taxonomy, noted NABERS Head of Market Development, Magali Wardle. This set of common definitions for sustainable economic activities will be used to credibly and transparently define sustainable investments.
NABERS data has informed the development of the taxonomy, added the Australian Sustainable Finance Institute’s Nicole Yazbek-Martin. Expanding NABERS’ influence through the CBD program will also build the evidence base of data that can be then fed into the taxonomy.
Green finance, verified by ambitious NABERS ratings, currently reward building owners with an interest rate discount. But for Frasers Property’s Vice President Group Sustainability Rory Martin, net zero commitments are increasingly key to accessing capital in the first place, especially as capital tightens. “It’s not the cream you might miss out on, but your latte altogether,” he said.
Meanwhile, the Australian Accounting Standards Board is phasing in a new reporting regime over four years from January 2025. Companies with a turnover of $500 million will be the first required to disclose their net zero targets, emissions profiles across all three scopes and their climate-related risks and opportunities. Large property companies are already working through the detail. “We think disclosure is a good thing, said Cbus Property’s Head of Treasury, Matt De Remer. Cbus Property is currently working through the detail. “We see it as an opportunity to continue to demonstrate the strength of our sustainability credentials,” he said.
Watch ‘NABERS Powering Sustainable Finance - money makes the world go green’ and other sessions from the 2024 NABERS + CBD Conference here.