Owners of Australia New Zealand Banking Group Ltd (ASX: ANZ) shares will be interested to learn of the bank's latest deal – a US$50 million ($69.9 million) partnership with a leading climate change investment and advisory firm.
That's right, ANZ has bought a minority stake in Pollination. The pair will be working together to innovate the field of sustainable finance.
At the time of writing, the ANZ share price is $28.09, 1.04% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.74%.
Let's take a closer look at ANZ's new partnership.
ANZ ups the ante on climate finance
The ANZ share price is in the green amid news the bank has bought a $70 million stake in Pollination – a stake it hopes will help it reach its sustainability goals.
The partnership will bolster ANZ's abilities in the field of sustainable finance, project and export finance, carbon markets, and corporate advisory.
For those not familiar with Pollination, it works with clients in the corporate, government, and financial institution fields to help their transition to sustainability and net-zero emissions.
As part of the partnership, the bank will bring its institutional background and strength in the Asia Pacific region to the table.
Meanwhile, Pollination will provide its expertise in climate finance, asset management, carbon projects, and sustainability-focused corporate advisory.
ANZ executive of institutional Mark Whelan said the partnership will benefit both its customers and its shareholders. In conversation with Pollination co-founder partner Martijn Wilder, Whelan commented:
[W]e've done a lot of strategic work internally and identified there's about 12 key areas that as a bank, strategically, we want to play. Some of it is in the electrification of cars and in the development of carbon trading, et cetera …
What we did realise through that deep dive of work though, was we have some real capability gaps. And those capability gaps will be filled by us hiring people in, Martijn but, very much so, also working with people who we know will be quality partners and that we can share in opportunities and use each other's capabilities.
I think, strategically, for us this is a big, big, big plus… in our environmental sustainability strategy, you're the perfect partner.
It will also allow Pollination to accelerate its growth and provide ANZ with a seat on the firm's board.
ANZ share price snapshot
Today's gain has boosted the ANZ share price back into the green.
It is currently 2.11% higher than it was at the start of 2022.
It has also gained 10% since this time last year.
