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| Tue, 11th Oct 2022 16:01:00 |
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Australia’s big four banks face shareholder ire over funding fossil fuels |
Activist group Market Forces says continued funding of coal, oil and gas is incompatible with net zero commitments
Executives at Australia’s big four banks will face anger over funding fossil fuels this annual meeting season, with shareholder activists renewing efforts to force them to account for investments that increase global heating.
At their annual meeting on Wednesday, shareholders at Australia’s biggest bank, the Commonwealth, will consider a resolution lodged by activist group Market Forces that was aimed at stopping it from financing new fossil fuel projects or the expansion of existing ones.
Market Forces has lodged identical shareholder resolutions with the other three big banks – ANZ, NAB and Westpac – ahead of their meetings in December.
It has lodged similar resolutions every year since 2019 without success.
However, banks are under increasing pressure from regulators to act on climate issues.
In August, the Reserve Bank warned banks and insurers they may face legal action if they did not take action. The Australian Prudential Regulation Authority began surveying big banks, insurers and super funds about their management of climate-related financial risks in March, after issuing a regulatory standard on the topic last November.
Market Forces said that continued funding of coal, oil and gas by the banks was incompatible with their public commitment to reach net zero carbon emissions by 2050 and their support of the international Paris agreement, which aimed to limit global heating to 1.5C.
CBA said it will not provide finance for new thermal coalmines and will reduce its existing direct financing of thermal coal to zero by 2030. It also promised not to provide corporate finance to new clients who derive 25% or more of their revenue from thermal coal, and reduce that exposure to zero by 2030.
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