The bank will no longer deal with a range of sectors
Kiwibank has rolled to a responsible banking policy which aims to put “the interests and values of Kiwis ahead of short-term business interests,” and draws “a line in the sand” with regards to the sectors it chooses to deal with.
Kiwibank will no longer deal with any companies involved in the extraction, production or manufacture of coal, oil and gas, and it has also blacklisted casinos, military grade weapons, synthetic drugs, palm oil, tobacco and predatory lending.
Adult entertainment venues such as strip clubs and brothers were originally on the list, but the bank has backtracked following protests from sex workers, and says it will still deal with companies which can “demonstrate good practice.”
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The new policy has been welcomed by 350 Aotearoa, which has commended Kiwibank for giving New Zealanders an “essential banking option” which guarantees that money “isn’t being funnelled into dirty fossil fuels.”
“By cutting its ties with coal, oil, and gas companies, Kiwibank is setting a new standard for Aotearoa’s banking sector,” campaigner Erica Finnie said.
“Our banks hold the purse strings on the large sums of money fossil fuel companies need to borrow in order to explore for and extract oil, gas and coal. Our major Australian-owned banks are culpable for the continued burning of fossil fuels that are causing climate breakdown: ANZ, ASB, BNZ, and Westpac have collectively poured over AUD $35.5 billion into coal, oil and gas projects since 2016.”
However, not everybody has welcomed the announcement, with West Coast miners saying the pledge “makes no sense” for the country’s economy, given how much it depends on coal to power hospitals, schools and horticulture. Minerals West Coast manager Patrick Phelps says he isn’t aware of any mining companies that currently use Kiwibank.
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“At the moment it’s just virtue signalling that’s not going to do anything, but if other banks follow then we are in real trouble,” Phelps said.
Development West Coast chief executive Heath Milne said New Zealand already has strict controls in place on the mining sector, and introducing a blanket ban is “short-sighted and arbitrary.”
“Without exception, all New Zealand coal mining companies operate under strict environmental controls and are arguably more scrutinised than just about any other industry,” Milne said. “Putting them in the same category as predatory lenders is laughable.”
