Federated Farmers has opposed banks’ efforts to reduce their exposure to fossil fuels and set climate targets, claiming it’s driven by non-commercial factors. However, Deloitte’s Will Symons, who met with CFOs, found no evidence that organizations are making decisions based on a “woke agenda.” Symons argues that companies are driven by commercial considerations, such as the need to reduce emissions to meet government targets and respond to shifting market conditions. The bill, proposed by MP Andy Foster, aims to require banks to make lending decisions solely on a commercial basis. However, some experts believe the bill may be unworkable, as climate change poses real commercial risks. DLA Piper’s Daniel Street notes that some US banks may have pulled out of climate accords due to concerns about litigation or reputational risks, not a change in their approach to climate risk. The bill’s passage could increase the cost of borrowing by introducing risk and uncertainty.
According to experts, the NZ First bill will not prevent banks from evaluating climate-related risks
