Teachers Mutual Bank first to get ethical certification

Teachers Mutual Bank's $500 million Debt Issuance Program has been the first bank to be certified by the Responsible Investment Association of Australia (RIAA).

The certification recognises the bank's policy exclusion in its wholesale cash product that prohibits utilising funds raised in lending to, or investing in, large scale greenhouse gas polluting activities. This includes fossil fuel exploration, extraction, production, and use.

Commenting on the certification Teachers Mutual Bank's chief executive, Steve James, said "we pride ourselves on being a sustainable business leader and are thrilled to be the first financial institution to offer a responsible investment wholesale cash product to the market."

"With a shift in consumer sentiment leading to more Australians calling for action on climate change, there has been an increase in demand for ethical investment options," he said.

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The bank said it wants to demonstrate to the finance industry and Australian consumers alike, that profitability and sustainability are not mutually exclusive.

"Banks in general tend to be large investors in the fossil fuel sector, so becoming the first certified responsible bank on these grounds is a significant achievement," James said.