bank mecu - responsible banking

bankmecu formed a unique partnership with Landcare Australia and Trust for Nature to develop the Conservation Landbank concept.   

The Conservation Landbank enables bankmecu to offset the loss of biodiversity resulting from new homes it finances, offset the carbon emissions generated by cars it finances and assists bankmecu to achieve its operational carbon neutrality commitment. 

Properties purchased by bankmecu and ‘deposited’ into the Landbank are protected against any future destruction of biodiversity through development by Trust for Nature Conservation Covenants. 

The first property acquired in 2008 was a 201 hectare site in Victoria’s West Wimmera region called ‘Minimay’. Purchased from the Trust for Nature Revolving Fund, the property is in an area that is home to Victoria's most endangered bird - the South-eastern Red-tailed Black Cockatoo.

Photo: South-eastern Red-tailed Black Cockatoo

A second property was acquired in 2010 with assistance from the Judith Eardley Save Wildlife Centre and is a 236 hectare site approximately 20 kms south of Minimay. The two properties are well linked via a vegetation corridor, with minor fragmentation occurring between the two sites. Only an estimated 1400 South-eastern Red-tailed Black Cockatoos remain (link http://www.redtail.com.au/), and together these properties, with their Buloke and Desert Stringybark woodlands, provide an ideal habitat for this rare creature.

A third 220 hectare property was acquired in 2011 and is  directly adjacent to the north boundary of bankmecu’s first property in Minimay. Refer to Spotlight - bankmecu Landbank activity for an update on activity in 2010/11. 

All three properties sit within Habitat 141. Habitat 141 represents a vision of a national biolink to conserve, restore and connect habitats for plants and wildlife on a landscape scale from outback to ocean. It is a membership based organisation assisting communities and environmental action groups to work together to this end. During 2010/11, bankmecu was engaged with Habitat 141 and participated in discussions around the establishment of a governance structure for the organisation. 

bankmecu’s vision is to contribute to this biolink by developing the biodiversity of its properties to support wildlife and building and protecting the native bushland to better mitigate the impacts of climate change. 

bankmecu has appointed Landcare Australia to project manage the Conservation Landbank, while Trust for Nature oversees the quality of conservation works.  As a result of these two partnerships, bankmecu has strengthened its ties with the local community. In particular, bankmecu is working with the Kowree Farm Tree Group, sub-contracted by Landcare Australia, to undertake revegetation works. The Kowree Farm Tree Group is made up of local farmers who have a common goal to protect the Red-tailed Black Cockatoo and restore native bushland. Refer to Spotlight - bankmecu Landbank activity for an update on activity in 2010/11 and other community group involvement. 

Refer to the Frequently Asked Questions on bankmecu’s website for further information about bankmecu’s Conservation Landbank.

Greenhouse gas emission offsetting (carbon equivalents (CO2-e))

To mitigate greenhouse gas emissions generated by bankmecu operations and to meet goGreen® Car Loan marketing commitments, bankmecu is undertaking revegetation works and managing existing high value remnant vegetation at bankmecu’s Conservation Landbank. Trees are being planted and managed to sequester carbon in accordance with a land management plan implemented by Landcare Australia. 

bankmecu forward credits offsets, which means that offsets will be produced in the future. bankmecu has chosen to plant trees as a means to sequester carbon because of the added biodiversity value. Trees continue to sequester carbon over their lifetime. As a result, this means of offsetting takes time to be realised, depending on the quantity and type of trees planted. bankmecu’s strategy is to build and develop its Conservation Landbank to ensure both biodiversity and carbon sequestration outcomes are achieved. 

bankmecu recognises that forward crediting offsets carries the risk of claiming credits that may not eventuate. bankmecu has measures in place to ensure estimated sequestration is met. Carbon sequestered from trees is monitored independently and reported by LandcareAustralia. 

The land currently available in bankmecu’s Conservation Landbank consists of three properties and has the capacity to offset approximately 104,289 tCO₂-e. 

Refer to the Frequently Asked Questions on bankmecu’s website for further information about bankmecu’s Conservation Landbank and carbon offsetting. 

Greenhouse gas emission offsets for bankmecu’s goGreen® Car Loan

The level of greenhouse gas emission offset for cars financed by bankmecu is in accordance with guidance received from Landcare Australia in 2010 that the average car in Australia produces 4 tCO₂-e per year. This forward credited offset is provided by planting trees in bankmecu’s Conservation Landbank, which will absorb enough tCO₂-e to offset the greenhouse gas emissions generated by the average car per year. 

For example, for a car loan with bankmecu for 3 years, bankmecu will purchase enough land for conservation and revegetation to forward credit offsets equal to12 tCO₂-e (3 year loan x 4tCO₂-e/year). 

Until 31 December 2007, bankmecu used Greenfleet as an offset provider. Using its Conservation Landbank, bankmecu has offset the greenhouse gas emission from 1 January 2008 associated with cars financed by the goGreen® Car Loan. Offset requirements are outlined in the table below. 

*This figure is calculated by Greenfleet methodology which uses 4.3 tonnes of CO₂-e  per average car. bankmecu is now working with Landcare Australia, who provided guidance of 4 tonnes of CO₂-e per average car.

To date, bankmecu is committed to offset 32,747 tCO₂-e in the Conservation Landbank for cars financed. 

Biodiversity offsetting

Biodiversity refers to the variety of plants and animals in a given area (ecosystem). Biodiversity is often used to assess the health of a given ecosystem – the more diverse the biology of a given area, the healthier it is. Diversity facilitates adaptability, which is becoming increasingly important with climate change. Ecosystems provide us with services required for human survival. For example, fresh water, clean air, temperature regulation, food and medicine (source: http://www.cse.csiro.au/research/ecosystemservices.htm).  Without diversity, the ecosystems which support us become less resilient to change and are at more risk of breaking down. If we want quality ecosystem services to exist in the future,  we need to protect and enhance biodiversity. Human life depends on it. 

bankmecu recognises that when land is cleared to build a new home there is a loss of biodiversity. That is, flora and fauna are cleared to make way for the new home. bankmecu’s Conservation Landbank will help bankmecu offset the loss of biodiversity resulting from new homes financed with the money bankmecu customers invest in their financial institution. If a member purchases a block of land and builds a new home with a bankmecu loan, the equivalent amount of land is allocated for protection and/or revegetation in bankmecu’s Conservation Landbank. bankmecu aims to purchase properties for inclusion in the Conservation Landbank that will contribute to a conservation corridor. This shall assist migration of species as the climate changes. 

Since the first loan with a biodiversity offset on 1 December 2008, bankmecu has committed to a biodiversity offset of 253,260 square metres. The total land available in bankmecu’s Conservation Landbank is  6,578,000 sq/m. 

*These figures have been adjusted since the 2009/10 report to account for several duplication errors and two further loans confirmed as not being a construction loan for the purposes of this register. 

Refer to the Frequently Asked Questions on bankmecu’s website for further information about bankmecu’s Conservation Landbank and biodiversity offsetting.