Tuesday, 08 April 2025 07:55

Commerce Commission probes major banks' net-zero pledges, gaining farmer support

Written by  Sudesh Kissun
ACT MP and primary production select committee chair Mark Cameron says he welcomes the investigation. ACT MP and primary production select committee chair Mark Cameron says he welcomes the investigation.

The Commerce Commission's move to investigate commitments made by major banks under the Net Zero Banking Alliance is being hailed by farming leaders.

ACT MP and primary production select committee chair Mark Cameron says he welcomes the investigation.

"Many in the constituency have raised alarm at this practice and full and open transparency about the Net Zero Banking Alliance and its practices is now timely," Cameron told Rural News.

The Net Zero Banking Alliance is an international group committed to aligning their lending, investment, and capital markets activities with net-zero greenhouse gas emissions by 2050.

Federated Farmers claim the five major banks - ANZ, Westpac, BNZ, Rabobank and ASB - have aligned their lending policies and are engaged in "cartel-like behaviour" in terms of their net zero emissions targets. The farmer lobby also claims that the five banks' policies are linked to their affiliation with the Net Zero Banking Alliance. It wrote to the Commerce Commission calling for an investigation. The banks have denied the claim.

A Commerce Commission spokesperson told Rural News that following concerns raised with the Commission, they've opened an investigation to determine whether the adoption and alleged alignment of net-zero strategies and targets by banks, including commitments made under the Net Zero Banking Alliance, could breach section 30 of the Commerce Act.

"We are continuing to obtain information from relevant parties to determine whethere there is conduct that breaches the Act.

"As this is an active investigation, we're unable to make any further comment, including how long the investigation might take."

Federated Farmers banking spokesman Richard McIntyre points out that following Feds' complaint in December, the Commerce Commission made some initial inquiries.

"As a result of that they have decided to open an investigation under section 30 of the Commerce Act which relates to cartel behaviour," he told Rural News.

"It seems that during their initial enquiry they smelt enough smoke to support a more formal investigation looking for fire - and I think they might just find something.

"This is an incredibly serious issue for the banks at this point. If they are found guilty, their directors could face criminal charges. The banks could also be on the hook for huge fines.

"We're calling on New Zealand banks to do the right thing and withdraw from the Net Zero Banking Alliance," McIntyre says.

More like this

Taxonomy talk

OPINION: Is the Government's taxonomy proposal dead in the water?

Don't hold back!

OPINION: ACT MP Mark Cameron isn’t everyone’s cup of tea, but he certainly calls it how he sees it, holding nothing back when ‘climate scientists’ had a crack at Kiwi farmers recently:

Keep it up

OPINION: The good fight against "banking wokery" continues with a draft bill to scrap the red tape forcing banks and financial institutions to make climate-related disclosures, by repealing Part 7A of the Financial Markets Conduct Act 2013.

Featured

Why is butter so expensive in New Zealand? Fonterra explains

Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Trop de Paris!

OPINION: Your old mate's ear has been chewed off recently by farmers voicing their displeasure with the National Party, particularly…

NZ vs Aussie beef

OPINION: Your old mate hears that at a recent China Business Summit, PM Christopher Luxon delivered a none-too-subtle "could try…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter