Major bank launches ‘world-first’ green deposit

Westpac’s new Green Tailored Deposit, recognised by the Climate Bonds Initiative (CBI), is a medium to long-term investment product (one to five years) with a minimum transaction amount of $1 million.

All the deposits are associated with a defined pool of eligible assets or projects that meet CBI’s Climate Bonds Standard criteria, which can include renewable energy, low carbon transport, low carbon buildings and water infrastructure, among other projects.

Speaking of the project, Westpac Institutional Bank CEO Lyn Cobley said: “This is a great example of Westpac’s customer-driven innovation. The new Green Tailored Deposit delivers an innovative solution for customers seeking an independently certified green investment product.”

“Westpac has long recognised that climate change is one of the most significant issues we face as a society.

“We know it will impact the long-term prosperity of our economy and we are committed to playing a leading role in supporting the transition to net zero emissions,” she said.

The City of Sydney Council and the New South Wales Central Coast Council have been named as the first investors under the new offering.

City of Sydney Lord Mayor Clover Moore said: “Over the last 14 years, the City of Sydney has been reducing our environmental footprint and investing in sustainability programs to empower residents, businesses and industry.

“In line with our robust investment strategy, we have called on our financial partners to create new and sustainable products. This is a significant step forward and will allow the city to more responsibly invest council funds in sustainable projects, while meeting our regulatory obligations,” she said.

Central Coast Council Mayor Jane Smith added: “Central Coast Council is committed to delivering a smart, green and liveable region.

“Green investments are an innovative and tangible way we can take action to address climate change and make a real difference to the future of our community.”

Westpac’s Green Tailored Deposits have been certified through the Climate Bonds Standard (which provides specific criteria for selection and monitoring of assets and projects and the verification of the environmental integrity of investments) and will be verified annually by an independent specialist.

The CEO of the Climate Bonds Initiative, Sean Kidney, said: “Westpac has provided a brilliant green option with solid climate credentials. Investors with purpose now have an opportunity to put their money to work addressing the biggest long-term threat we all face, climate change.

“It’s a simple choice: do we want our investments to do good or not? Westpac has made it easy to decide.”

[Related: NAB launches green mortgage-backed bond]