Image source: Getty Images
Key points
- NAB shares finished Friday higher following an uptick on the ASX
- The bank made the cut for the world's most sustainable corporations
- NAB is actively pursuing its goal to achieve net-zero emissions
The National Australia Bank Ltd (ASX: NAB) share price closed higher on Friday. This comes after the company released a statement earlier in the week regarding its global sustainability ranking.
At the closing bell, the banking giant's shares were up 1.47% at $27.65 apiece.
Let's take a closer look at what the company had to say to investors.
NAB highlights its commitment to climate action
The NAB share price finished the day higher following positive investor sentiment across the market. The S&P/ASX 200 Index (ASX: XJO) rebounded strongly to end the day 2.19% higher after spending the week in the red.
On Monday, the bank put out a media release highlighting its spot among the world's most sustainable corporations.
NAB was ranked 71 out of nearly 7,000 companies, based on financial and sustainability performance. It's worth noting it was the only Australian bank to make the cut and just one of three Australian companies.
NAB group executive, corporate and institutional banking, David Gall, commented:
With 50 per cent of the rating based on a company's clean revenue and investments, our role as the leading Australian bank for lending to renewables plays an important part in our ranking.
Renewables represent 71 per cent of our total lending to energy. Since 2003 we've completed 150 renewable financing transactions and lent over $11.5 billion.
Climate action is everyone's job. We need to be part of the solution and support our customers as they take action too.
Last year, environmental, social and governance (ESG) issues took focus across businesses, government and investors.
Following the United Nations' climate summit in November, around 90% of countries have made pledges to cut emissions. In addition, hundreds of major corporations have in place a net-zero target within the next three decades.
NAB, in particular, has a goal to align its lending portfolio with net-zero emissions by 2050. It is the first Australian bank to sign the Collective Commitment to Climate Action. This will see the bank managing its portfolio to align with the Paris Agreement goal of limiting global warming.
NAB share price summary
Despite recording a negative performance in 2022, the NAB share price has risen by 15% over the last 12 months.
Its shares reached a 52-week high of $30.30 after the release of its FY21 results last November before retreating. It's worth noting that even at today's prices, the company's shares are trading at pre-COVID-19 levels.
NAB commands a market capitalisation of roughly $89.81 billion, making it the fourth largest company on the ASX.
