The boss of the ANZ has hit back at claims the bank is “virtue signalling” after announcing its new climate change policy that sees the bank stepping away from thermal coal.

Australia’s fourth-largest bank says it will no longer finance new coal-fired power plans or thermal coal mines by 2030.

It’s also asking its 100 biggest polluting customers to develop a plan to reduce their emissions while pledging to stop providing finance to any company that generates more than 10 per cent of its revenue from thermal coal.

The plan attracted swift criticism from key members of the government, including Deputy Prime Minister Michael McCormack, who accused the bank of “sheer virtue-signalling”.

ANZ Chief Executive Shayne Elliot has hit back at critics and told Brooke Corte it makes sense to go down this path.

“I think it’s sad that our policy has been misinterpreted, and I’ll be charitable and assume it’s been misinterpreted,” Mr Elliot said.

“It’s got nothing to do with virtue signalling, it’s got everything to do with good old economics,

“This is what our customers want us to do, and this is actually where the economics are taking us so we’ve given notice that this is what we’re going to do

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