The Company recognizes climate change as a “top risk”, has committed to net zero by 2050, and claims to
assess clients’ transition plans, including “whether they have greenhouse gas emissions reduction targets and
compliance with the Paris Agreement (1.5°C alignment)”, as part of the corporate credit assessment process.
However, the Company does not demonstrate how these various policies, frameworks and controls
meaningfully influence the provision of services to high-emitting clients. Furthermore, the policy does not
impose a deadline for clients in high-emitting sectors to present credible transition plans that are aligned with
the Paris Agreement’s 1.5°C goal, nor does it impose conditions on funding to encourage clients’ transitions.
Instead, the company continues to provide significant financial support to high-emitting clients that do not
have credible transition plans.
This not only undermines its own disclosed transition approach, it leaves the Company lagging behind
overseas peers, and exposes shareholders to increasing transition risks, as well as physical risks from
worsening climate change.
The disclosures requested in this proposal are required to ensure the Company adequately enacts its stated risk
control measures, and aligns with its commitment to reduce finance portfolio emissions to net zero by 2050.
These disclosures are in line with widely-held investor expectations, and will help maintain and enhance the
Company’s long-term corporate value.