Two of Australia's biggest banks have become foundation members of a new industry association, the Environmental Bankers Association of Australia, which aims to improve the industry's approach to managing environmental risks, and to establish effective financing principles where such risks are present.ANZ and National Australia Bank are among the EBAA's foundation members. The association was established last year and has started to adopt a public profile in the past month.Other members of the association, which is a chapter of the US Environmental Bankers Association, include GE Capital; ME Bank; the law firms, Minter Ellison and Harrick Lawyers; the insurance broker, OAMPS, and the engineering company, OTEK Australia.The EBAA's chief executive, Grant Scott, said many financial institutions lacked the internal resources to undertake due diligence on all the environmental issues that arose in funding property and resources projects.Scott said the association would have active conference, training and networking programs."What we are about is producing research for our members and advising on best practice," he said."We will set guidelines for dealing with a range of environmental issues. We are already doing some in-house training and helping institutions establish environmental policies."We are not a lobby group but we will present a face to the community on these issues and facilitate contact with government."The chairman of the Western Australian Environmental Protection Authority is chairing the association's regulatory advisory panel.A recent issue of the US organisation's newsletter, BankNotes, gives an indication of the association's agenda. A list of topics for a forthcoming meeting includes: issues facing lenders in foreclosure scenarios involving natural resource damage; legal cases where lab data was the Achilles heel; and contamination issues not commonly found.