Environmental and Social Impacts of Westpac Group Operations

RUNNING HEAD: WESTPAC GROUP
0
Westpac Group
Report
9/22/2019

Westpac Group
1
Part A: Critical Analysis
1. Overview of Environmental and Social Impacts of Westpac Group operations
Westpac Group operates in banking sector of Australia and offers various products and
services to 13 million customers across the world. This section of the report is focused towards
understanding the social and environmental impact of the operations of the company on
stakeholders. Westpac Group has maintained and developed a culture of undertaking
environmental, economic and social responsibility in order to build a sustainable future
(Westpac, 2019). The financial industry also has great influence on the society and people.
Westpac positive impact on society include “lending to grow the stock of social and affordable
housing and to back the CleanTech and environmental service sector” and provide banking
services to Indigenous Australian and to the customers operating in social sector and tis way
company contribute in the development of the society and indigenous people. Further, Westpac
group joined “UNEP Finance initiative” in order to establish a positive impact incubator where
all the new business ideas will be tested and funding will be provided to deserving startups
(Higgins, Tangs, & Stubbs, 2019). The positive impact that banks have on society includes
stronger community services, the protection of environment, the saving of lives and enhanced
financial literacy (Weber & Feltmate, 2016).
For society, Westpac conducted various activities and drives to contribute for society in a
positive note and for that they involve their employees, did community partnership, and capacity
building. Employee involvement through Westpac operation backyard, pro-bono support,
donations, and charity bikes as from these initiatives 85% of employees participated in societal
activities, 7000 employees do volunteering on frequent basis, 228 employees participated in
Cape York program. Further approximately $1.4m fund collected by employees and invested in

Westpac Group
2
250 projects related to environment. Westpac partners with most of the communities for welfare
of the society and partnered with Landcare Australia, Juvenile Diabetes research foundation and
Surf life Australia. Several workshops were conducted by the company to educate people of
Australia about saving, spending and insurance, separating needs and wants, and benefits of
compound interest (Westpac, 2019). The negative social and environmental impacts of
operations of Westpac are economic destruction as increased economic growth due to banking
operations leads to more consumption and spending by the people and this will indirectly related
to destruction of environment. For example, increasing growth leads to increasing CO2
emissions per capita. More challenges that society will going to face in near future due to
operations of banking industries are crises in food production, decline in natural resources,
climate changes and more energy consumption as banking operations can improve standard of
living and increasing purchasing power that indirectly affect environment (Dumay & Hossain,
2019).
2. Comparison with other companies in same sector as per GRI
Global reporting initiatives (GRI) are the global standard on basis of that the companies
present sustainability report. This provides best practice for sustainability reporting on a range of
environmental, social and economic impacts. Westpac Group has effectively adopted and
implemented all the concepts and standards of sustainability reporting. The company follows G4
guidelines- Standard Disclosures and Reporting Principles. Specific standard disclosures for
category environmental are materials, energy, water, emission, and transport, effluents and waste
and supplier environment assessment. In social category includes labor practices, human rights,
and society and product responsibility. In that some aspects are included that is labor relations,

Westpac Group
3
diversity, investment, indigenous rights, anti-corruption, services and products labeling and
customer privacy (GRI, 2019).
In the same sector in Australia other companies are also following G4 disclosure
guidelines in sustainability reporting. Some of the organizations in Australia banking sector are
Commonwealth bank, National Australia bank and much more. By comparing the sustainability
reporting of Westpac group with National Australia Bank it is known that NAB presented its
goals and targets in scorecard format and compared it with last year performance to know the
actual improvement.
NAB disclose and present data in a systematic form and in depth by providing comparing
figures that help the stakeholders to take decision by comparing the negative and positive impact
of operations of the company on society and environment. As in sustainability report of NAB it
is analyzed that the company clearly states all the progress in each sectors that are employee
engagement, GHG emissions, energy use, water use, supplier sustainability targets, volunteering,
and indigenous inclusion (NAB, 2019). Further in NAB reporting their goals of the year are
mentioned clearly and during 2018 company’s goals were responsible consumption and
production, climate action, gender equality, life on water and land and affordable and clean
energy to communities in Australia. Further, report clearly defines the responsibilities and
projects that company undertake in order to reduce the environmental and social impacts of its
operations. In section sustainable impact finance the company highlighted its investment in
companies that offer positive environment and social impact and financial return (NAB, 2019).
The quality of information that is provided by Westpac group in its sustainability
reporting does not cover all the segments or category as per the G4 disclosure and omitted most
of the social impact that happen on the society. Through the analysis it is known that Westpac