Nearly 200 Commonwealth Bank shareholders have filed a shareholder resolution calling on the bank to set out the steps it will take to become deforestation-free.
The shareholder resolution, which will go to CommBank’s annual meeting on 14 October, is facilitated by the Australian Conservation Foundation and SIX and co-filed by Australian Ethical, Ethinvest and 196 shareholders.
“Australia’s largest bank continues to be linked to cases of deforestation and is choosing to ignore the real-world impacts of its financing,” said Max Hamra, ACF’s Policy Analyst – Corporate Responsibility.
“While this year’s annual reporting has disclosed some of the bank’s exposure to nature risk for the first time, by only assessing individual land clearing events of more than 200 hectares, the bank fails to capture high impact deforestation that still carries significant risk through the associated damage to soil, water, biodiversity and the climate.
“The bank has found deforestation, noted the impacts, but doesn’t intend to act on them.
“Deforestation poses significant risks to Australia’s economy and CBA’s customers, especially agribusinesses. Farmers are on the frontline of extreme weather and the damage to soil health and the water cycle that occurs when forests are torn down.
“New Queensland state data shows clearing of native vegetation is primarily being driven by beef pasture expansion, much of this in the Great Barrier Reef catchment.
“Major beef buyers – including Coles, Woolworths, McDonalds and Aldi – have made commitments to get deforestation out of their supply chains.
“As corporate and government policies to stamp out deforestation-linked commodities take effect, livestock producers that fail to adopt nature-positive practices risk losing market access. This risk extends to the bank financing these customers.
“We urge CommBank to listen to its shareholders and set out a clear pathway to stop forest destruction enabled by its finance.”
Bonnie Graham, Impact and Ethics Analyst at Australian Ethical, said:
“It’s time for CBA to take meaningful action on deforestation. CBA acknowledges the agriculture sector’s significant nature related risks yet continues to increase its lending to landholders driving deforestation. This is a contradiction it can no longer afford to ignore, and shareholders have a right to ask for greater transparency and action.”
Trevor Thomas, Executive Chair at Ethinvest, said:
“We demand a lot from our banks. They occupy a place of privilege in our society and economy. The capital banks mobilise shapes the world in profound ways. We call on the CBA to use that power to protect Australia’s standing forests – in policy and in practice.”
James Alexander, Senior ESG Manager at SIX, said:
“Stopping deforestation is increasingly a priority for investors, here and globally. Last year, at another big four bank, 22.7% of ANZ shareholders voted in support of action on deforestation. This was a globally-high deforestation vote.
“The message from shareholders to CommBank is just as clear. The bank must accelerate its shift away from financing deforestation and help Australia shed our unhappy title of ‘a global deforestation hotspot.'”
