Westpac and CBA accused of greenwashing in $497M loan to salmon farmer Tassal

Westpac (ASX:WBC) and Commonwealth Bank of Australia (ASX:CBA) are under fire from leading environmentalists over a $497 million sustainability-linked loan to Tassal, a Tasmanian salmon farming company now owned by Canadian group Cooke Aquaculture. 

Critics, including author Richard Flanagan and former ACF chair Geoff Cousins, say the loan misrepresents its environmental impact, particularly in Macquarie Harbour, home to the endangered Maugean skate and site of multiple salmon die-offs.

Announced in August 2022, the loan was structured to reward Tassal with lower interest rates for hitting environmental performance targets.

However, Flanagan and Cousins argue the deal promotes greenwashing, with Flanagan noting that Tassal had lost Aquaculture Stewardship Council certification for most of its Tasmanian farms by 2022.

He likened the company's claim of ASC credibility to boasting about one good tyre on a bald vehicle.

Despite public backlash and calls from Senator Jacqui Lambie to end farming in Macquarie Harbour, Tassal maintains its practices are sustainable and third-party verified.

Tasmania's EPA also claims water quality is at its best in a decade.

Banks relied on advisory firm Sustainalytics for environmental risk assessments before issuing the loan, but critics doubt thorough due diligence occurred.

The controversy marks a broader shift in environmental activism, as campaigners increasingly target the financial institutions enabling ecologically harmful industries.

The Australian Conservation Foundation and ethical investors have labelled the Tassal loan a textbook case of greenwashing, urging banks to reassess the integrity of their sustainability frameworks.