The resolution – which calls on CBA to no longer fund expansion of the fossil fuel industry and set targets to reduce industry exposure consistent with net zero by 2050 – is likely to receive strong shareholder support, with similar resolutions against ANZ and NAB receiving 28.7 and 26.3 per cent share of votes respectively at the banks’ 2020 AGMs.
“Despite committing to the climate goals of the Paris Agreement and achieving net zero emissions by 2050, CBA is aligning its investment practices and policies with the failure of these goals, resulting in our company falling behind rapidly evolving investor and regulator expectations, and the practices of other financial institutions,” the supporting statement to the resolution read.
“CBA continues to finance companies and projects that expand the scale of the fossil fuel industry. This is contrary to its commitment to the Paris Agreement and net zero emissions by 2050, and the bank’s own policy.”
Analysis from shareholder activist group Market Forces revealed that the bank’s climate disclosures set out in its latest annual report are based on the International Environment Agency’s Sustainable Development Scenario that aims towards net-zero emissions by 2070, rather than the more ambitious Paris targets of net zero by 2050.
The group also pointed to the bank having “watered down” its commitment to only funding new oil, gas and metallurgical coal projects that were consistent with the Paris Agreement, as this commitment now only applied to “project finance” rather than “all banking and financing activity” in its report.
“If the IPCC’s report was a kick in the teeth to all those who desperately want a safe climate future, CommBank’s new climate policy is a kick in the guts to follow it up,” Market Forces Australian campaigns coordinator Jack Bertolus said.
“What CBA has delivered is a retreat from its existing policy, and makes a mockery of its own claim to be supportive of net-zero by 2050. We’re living in a moment when we need to pull out all the stops to prevent catastrophic climate change, yet the first thing CBA does is aim for failure.”
The group pointed to a range of CBA’s current clients that were inconsistent with a commitment towards the Paris targets, including the bank’s co-financing of Santos’ Timor Sea gas field, which mining magnate Andrew Forrest has called “one of the most polluting projects in the world”, and its vague expectations of transition plans from Santos and Origin Energy by 2025 with no consequences if these are not produced.
“CBA is giving some of Australia’s biggest polluters and climate laggards a four-year amnesty from taking action. At least there should be no confusion now about why shareholders are so keen to take them to task,” Mr Bertolus said.
