COMMONWEALTH BANK OF AUSTRALIA | Climate Risk Safeguarding

Status
Withdrawn
AGM date
Previous AGM date
Proposal number
5
Resolution details
Company ticker
CBA
Lead filer
Market Forces
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Fossil fuel financing
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Australia
Supporting materials
Resolved clause
Shareholders recognise the substantial transitional and physical risks of climate change and their
potential financial impacts on our company. We also note our company’s support for the Paris
climate change agreement and the goal of net-zero emissions by 2050. Shareholders therefore
request the company disclose, in subsequent annual reporting, information demonstrating how
the company’s financing1 will not be used for the purposes of new or expanded fossil fuel
projects.
Supporting statement
“Despite committing to the 1.5°C global warming limit
of the Paris Agreement, and net-zero global emissions by
2050, CBA’s financing continues to undermine these goals,
exposing our company to increased transitional, physical
and legal climate risks, all of which amount to financial risks
ultimately borne by shareholders.
Paris-aligned financing means no new fossil fuels
The International Energy Agency’s (IEA) Net Zero by 2050
scenario (NZE2050) 1 states “no new coal mines or mine
extensions”, “no new oil and gas fields” and “huge declines in
the use of coal, oil and gas” are needed to achieve net zero
emissions by 2050. It further states “also not needed are
many of the liquefied natural gas (LNG) liquefaction facilities
currently under construction or at the planning stage”.
In July 2021, 115 investors with US$4.2 trillion in assets
under management and/or stewardship wrote to 63 global
banks, calling on them to integrate the NZE2050 findings,
including the need for no new fossil fuels, into their climate
strategies. 2 CBA’s current policies and practices fall well
short of this demand.
As early as 2018 the IEA’s Executive Director said limiting
global warming to less than 2°C means “we have no room to
build anything that emits CO2 emissions”. 3 This conclusion
has been confirmed by peer-reviewed scientific research 4
and analysis 5 drawing upon data from organisations
including Rystad Energy, IEA and IPCC.
CBA continuing to finance fossil fuel expansion
Despite these ever-growing calls to end fossil fuel expansion,
CBA continues to finance projects and companies doing
exactly that.
In July 2022, CBA was reported as a lead arranger of a loan
to Santos, 6 refinancing and extending a 2020 deal related
to the new Barossa gas field Santos is currently developing, 7
which one economist has described as “a CO2 emissions
factory with an LNG by-product”. 8 Barossa is one of multiple
projects Santos includes in plans to increase oil and gas
production by at least 17% from 2020 to 2030

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