On Friday it was revealed that for the first time, a bank had insisted on a confidentiality clause as part of a finance deal for a coal power station — so that its name could not be revealed for fear of reputational damage.

Yesterday, Westpac announced in its annual sustainability report that they “will avoid involvement in transactions which support the establishment or long-term continuation of inefficient and high carbon-emitting assets into the future”.

Does this mean the banks are starting to walk away from coal? If so, it’ll be a big turnaround.

Last month, Greenpeace revealed that over the past five years, Australia’s Big Four banks have financed the Australian coal industry to the tune of about $5 billion — more than six times more than was invested in renewable energy. This is in stark contrast to the green marketing claims and sustainability awards won by many banks.

Until a few weeks ago, ANZ openly claimed on its website that it was the largest financier of coal in Australia. While this boast has now been removed, the Greenpeace research confirms that ANZ has been the largest financer of coal power stations and coalmines over the past five years, despite being recognised as the world’s most sustainable bank for four years running by the Dow Jones Sustainability Index (DJSI).

The banks have been copping a hiding over interest rate rises and excessive fees, and they are now also coming under intense environmental scrutiny over the impact of their lending practices.

The most recent new coal power station built in Australia was Bluewaters II, in Western Australia, which was only commissioned at the end of last year. The finance deal was pulled together in 2007, with ANZ and NAB acting as lead arrangers of a consortium of banks, and Westpac also playing an important role.