Submission to banking competition inquiry

^{Bernard Spragg, Flickr.}

The Commissioner has prepared a submission for Parliament’s enquiry into banking competition.

He has commented on three aspects of the Terms of Reference which have particular relevance to the environment. The key points emphasised in his submission are:

• Many of the climate and other environment-related information requirements banks impose are in line with international trends and market requirements. New Zealand needs to keep up or we will fall behind.
• Banks’ sustainability targets generally align well with the Government's climate targets and international trade and climate commitments.
• If we stop reporting risks, those risks won't disappear. Gathering and presenting information about risks allows them to be managed through planning and preparation, which in turn could reduce the impact of those risks.
• What private businesses do with this information is up to them.

Banks have environmental and sustainability policies, in part, because these are seen as key risks for the future performance of the businesses they lend to. It is also because markets are increasingly demanding that the businesses they buy from will deliver on these basic standards. Market forces that can work alongside government policy to reduce emissions should be welcomed.