Teachers Mutual Bank’s $3.5 billion socially responsible investment opportunity

  • By AB+F Editorial

Teachers Mutual Bank will certify its retail deposits, mortgages and wholesale funding under the Responsible Investment Association Australasia (RIAA) Certification.

According to a statement from the bank, this certification from the RIAA could generate more than $3.5 billion of socially responsible investment for the bank by 2021.

This certification will cover deposits and mortgages for all Teachers Mutual Bank Limited brands: Teachers Mutual Bank, UniBank, and Firefighters Mutual Bank.

‘At a time when more and more consumers are wanting to ensure their banking and investments are managed ethically, RIAA Certification provides certainty that an organisation has reached high standards of disclosure and performance and confirms the authenticity of their commitment to responsible banking,” RIAA CEO Simon O’Connor said.

“We congratulate Teachers Mutual Bank on meeting these requirements and delivering ethical banking for their clients,” he said.

This certification builds on the bank’s wholesale $1 billion-dollar Debt Issuance Programme which is an RIAA certified ethical investment, $500 million of this investment was certified in June 2015 based on fossil fuel exclusions.

This figure rose to $1 billion in 2018 with an additional $500 million investment covering exclusions in alcohol, armaments, correctional facilities, gambling, gross environmental degradation, slavery, and other harmful activities.

Combined this is over a $3.5 billion socially responsible investment opportunity for the bank.

“This announcement demonstrates Teachers Mutual Bank Limited’s determination to champion responsible investment. We’re acting on our values and aligning our business practices with our members’ expectations,” Teachers Mutual Bank CEO Steve James said.

“We’re not a bank that has to be forced to do the right thing for our members by regulation, our members know we work for them alone. That’s the standard our community should expect of all banks,” he said.

The bank estimates that this certification will cover a cumulative $1.3 billion of retail mortgages and deposits in 2019, $1.9 billion in 2020, and $2.7 billion in 2021.