Updated Sustainability Policy formalises lending and investing exclusions on fossil fuels

Updated Sustainability Policy formalises lending and investing exclusions on fossil fuels

Teachers Mutual Bank’s updated Sustainability Policy 2220 has been published today. The policy now includes the mutual's position on lending to and investing in, large scale greenhouse gas pollution from fossil fuel exploration, extraction, production and use. This update to the policy formalises Teachers Mutual Bank’s strong stance on climate change published in March 2014.

The section ‘Responsible lending and climate change’ states that;  

Lending Risk Policy; ‘Various lending opportunities are disqualified from Teachers Mutual Bank’s lending origination business. Such exclusions are where: 

• The purpose would be to finance large scale greenhouse gas pollution from fossil fuel exploration, extraction, production and use
• The purpose would be to directly lend to, buy equity or debt in any large scale greenhouse polluting activities from fossil fuel exploration, extraction, production and use.’

Treasury Credit Risk Management Policy; ‘TMB will not directly invest in any large scale greenhouse gas polluting (i.e. fossil fuel exploration, extraction, production and use) activities or companies.’

The Policy also states that;

‘The environmental damage created by banks is largely from the negative impacts of  their lending and investments, rather than their direct footprint. The major environmental issue is climate change’. 

The 36 page Sustainability Policy covers five Sustainability Priorities and itemises 200 points. It  ‘outlines how we implement sustainability on a day-to-day basis through our policies, procedures and practices, and how we deliver on our responsibilities and commitments. It shows how we bring sustainability to life in our daily operations, our sustainable business practices along with our engagement with our members, our communities, our employees and our environment’.