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Growing focus on environmental impact and green footprints has seen the bank’s RIAA products rise by $1 billion in six months, new data shows.
Teachers Mutual Bank Limited has released figures showing its portfolio of Responsible Investment Association Australasia (RIAA) certified products has grown by $1.4 billion in six months.
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The RIAA aims to ensure capital is aligned with achieving a healthy society, environment and economy and champions responsible investing and a sustainable financial system in Australia and New Zealand.
According to the lender, RIAA certified mortgages and deposits are up from zero to $9.2 billion in three years, and grew by 116 per cent in the 18 months to 31 December, ended the 2021 calendar year at $9.7 billion.
Teachers Mutual Bank Limited is currently the only bank in Australia with all wholesale products, mortgages and deposits certified as responsible investment by the RIAA, and is the only bank named as a responsible investment leader by the RIAA.
The bank’s RIAA certified products now make up 42 per cent of assets and 57 per cent of liabilities on the balance sheet.
Commenting on the results, Teachers Mutual Bank Limited chief executive, Steve James, said: “We’re delighted by these figures showing the rapid growth of our Certified Responsible Investment products.
“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.
“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.”
The head of socially responsible banking at TMBL, Corin Millais, said that RIAA certification is of increasing importance amid a rise in greenwashing.
“Certification is the cure for greenwash,” Mr Millais said.
“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.
“We can guarantee 100 per cent that the money [customers] borrow from us for [their] mortgage never comes from damaging industries such as fossil fuels, tobacco, gambling, and nor do we fund those industries with [their] deposits.”
[Related: SME lender rolls out ESG discounting]
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