Te taiao
Environment

Te taiao
Environment

Support the just transition to a net-zero economy

Build the capability to appropriately take climate change risks into consideration when making lending decisions
Fund Heartland’s borrowers’ transition to a net-zero economy
Embed sustainability into what Heartland does
Climate reporting

Heartland’s Sustainability Committee was established in November 2023 to oversee Heartland’s sustainability strategy and implementation plans. With the direction of this new Board committee, Heartland is pleased to have published its first Climate Report in line with the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act. The Heartland Climate Report 2024 provides insight into Heartland’s environmental journey, including achievements, challenges, climate-related risks and opportunities and future targets.

Identifying climate-related risks and opportunities

Through scenario analysis, Heartland engaged Jupiter Intelligence, a climate risk modelling software company, enabling Heartland to understand its exposure to potential climate hazards through to 2100. Understanding the potential impacts of climate-related events will allow Heartland to set risk-appetite targets for lending within its New Zealand and Australian businesses as part of its climate risk management strategy. Heartland now has a better understanding of the resilience of its business strategy in light of climate-related risks and opportunities.

Increase lending to new generation vehicles

Of all vehicles funded within Heartland’s Motor Finance portfolio in FY2024,15% were new generation, plug-in hybrids, and battery electric vehicles, compared with 10% in FY2023.

In December 2023 Heartland announced its white labelled MG Finance partnership with MG Motors New Zealand. This finance offering provides Heartland’s borrowers a range of flexible car finance solutions for the entire MG range including HEVs, PHEVs, and BEVs. In February 2024, Heartland Bank became one of Tesla’s two preferred finance providers in New Zealand, offering an online finance solution to help more Kiwi drive electric vehicles.

40% reduction in
operational
emissions
Since its FY2019 base year Heartland has achieved a 40% reduction in operational emissions.*
91% new generation
vehicles
As at 30 June 2024, Heartland Bank had replaced 91% of its vehicle fleet with new generation vehicles.

*Includes Scope 1, 2, and select Scope 3 emissions that Heartland has operational control over including freight, flights, car rentals, taxi, working from home emissions, electricity transmission losses and waste generated in operations.

Baseline carbon footprint analysis for Australian Livestock Finance

Heartland’s Australian livestock business, StockCo Australia, partnered with Australian farmer-led software provider, Ruminati, for a 2-year pilot project. Ruminati is an online emissions calculator created by farmers for farmers. The platform provides producers accurate climate data and emissions information to help producers across Australia track and validate on-farm climate action throughout the supply chain.