Mortgages certified as responsible investment
New figures released by Teachers Mutual Bank Limited show its portfolio of products certified by the Responsible Investment Association Australasia has grown to $9.7 billion.
Representing the bank’s wholesale and retail products, it marks $1.4 billion of growth in the six months to 31 December 2021.
The customer-owned bank said RIAA certified products now make up 42% of assets and 57% of liabilities on the balance sheet.
Teachers Mutual Bank Limited CEO Steve James (pictured) said the figures show the bank’s certified responsible investment products have undergone rapid growth.
“In the three years that we first certified all our retail mortgages and deposit products with RIAA, these have gone from zero to $9.2 billion, all at zero cost to the consumer,” James said.
“RIAA Certified products now make up almost half of our balance sheet; it’s a huge achievement which we’re very proud of. The rapid growth is because this is built in as standard, not a bolt-on green niche. We are a force for good where social responsibility drives everything, and these figures prove that.”
Read more: Teachers Mutual Bank Limited named one of world’s most ethical companies
In addition to all wholesale products and deposits, all mortgage products sold across the bank’s five divisions (Teachers Mutual Bank, Health Professionals Bank, Firefighters Mutual Bank, UniBank and Hiver), are certified by the RIAA as responsible investment, the bank said.
Assessment of its products by RIAA showed they incorporate an investment style and process that considers environmental, social, governance or ethical considerations, and meet operational and disclosure practices.
The figures follow a recent RIAA consumer report showing almost three-quarters (72%) of the population had concerns about greenwashing. The practice of greenwashing is where a company purports to be environmentally conscious for marketing purposes but actually isn't making any notable sustainability efforts.
The bank said independent verification of sustainability claims is becoming key to building trust.
Teachers Mutual Bank Limited head of socially responsible banking Corin Millais said amid a rise in greenwashing, RIAA certification was becoming increasingly important.
“Certification is the cure for greenwash. We’ve invested in the toughest ESG standards such as RIAA and B Corp, because third-party assessments give people proof that we can be trusted, that we are a leader, and that we really are a force for good in banking,” Millais said.
“We can guarantee 100% that the money you borrow from us for your mortgage never comes from damaging industries such as fossil fuels, tobacco, gambling, and nor do we fund those industries with your deposits.”
Read more: Hiver aims to be Australia’s most ethical digital bank
Confirming its wholesale products were first to be certified, the bank’s retail products were certified by RIAA on 1 December 2018. In the three years following, its RIAA certified retail mortgage and deposit portfolio increased from zero to $9.2 billion.
