The nab Group has outlined its approach to managing ESG risks, including climate change, modern slavery, and regulatory compliance, as well as the potential impacts on its financial performance and reputation. The company highlights the increasing complexity of sustainability-related risks and the need for robust governance and compliance practices.
Material actions and disclosures
nab Group is exposed to risks associated with climate change, including physical and transition risks, which may lead to increased customer defaults and decreased asset values. The company also identifies modern slavery as a significant social risk in its supply chains, potentially impacting customer defaults and the credit risk it faces.
Furthermore, the company is addressing regulatory changes, including mandatory climate-related reporting requirements that came into effect in Australia on 1 January 2025 and similar obligations in New Zealand. The nab Group is investing in processes and controls to ensure compliance with these new regulations.
Forward commitments
nab Group aims to continue enhancing its ESG risk management practices and compliance with evolving regulatory requirements. The company plans to invest in systems and data to manage and monitor ESG risks effectively, aiming to mitigate adverse impacts on its financial performance and reputation.
The nab Group is also committed to addressing potential weaknesses in employment practices, including anti-discrimination, workplace health and safety, and payroll compliance, to reduce reputational risks and ensure fair and equitable treatment of employees.
These actions and commitments reflect the company’s ongoing efforts to navigate the evolving landscape of ESG and regulatory compliance.
Attributed to the original announcement on page 82 of the 2025 nab Annual Report.