ANZ says it is restricting oil and gas financing. 

ANZ Group Holdings Limited, Australia's largest corporate and institutional lender, has announced a major overhaul of its funding policies related to the oil and gas sectors. 

The announcement, which was part of the bank's half-year results released on Tuesday, outlines a move away from supporting upstream oil and gas projects, except under circumstances of national emergency or direct governmental request.

The bank's updated policy directly affects several large-scale projects, including the substantial US$10 billion PNG LNG project. 

This project, which boasts involvement from industry giants like TotalEnergies, Santos, and ExxonMobil, will no longer have financial backing from ANZ for any new drilling initiatives.

The bank has clarified, however, that its financial support will continue for midstream operations such as pipelines and liquefaction plants. 

While cutting ties with upstream extraction projects, ANZ remains committed to the broader oil and gas sector, imposing strict reviews on how financed funds are utilised, particularly those earmarked for extraction.

ANZ's new policy is part of a broader climate strategy that involves proactive engagement with its top 100 emitting clients. 

This strategy is in response to upcoming regulatory changes under the Albanese Government's safeguard mechanism, which mandates detailed emissions reporting and transition plans verified by third parties.

ANZ also says it aims to slash its own emissions by 26 per cent by 2020 and see a 40 per cent reduction in exposures to greenhouse gases by 2025.