Climate activist group Market Forces targets big four banks CBA, ANZ, NAB and Westpac

Market Forces has lodged shareholder resolutions with nation’s big four banks, calling for an end to billions of dollars in financing for new or expanded fossil fuel projects.

Climate activist group Market Forces has lodged shareholder resolutions with three major banks, calling for an end to “billions of dollars” in financing for new fossil fuel projects.

The resolutions will be considered at the December annual meetings of National Australia Bank, ANZ and Westpac, with Commonwealth Bank shareholders to vote on a similar proposal at the bank’s October 13 meeting.

In addition to calling for a halt to funding of new fossil fuel projects, Market Forces has also urged the banks to reduce their exposure to the coal and oil and gas sectors, consistent with the net-zero emissions target by 2050 in the Paris Agreement.

“Australia’s major banks have all committed to net-zero by 2050 but continue undermining that commitment through their financing activity,” the group’s Australian campaigns co-ordinator Jack Bertolus said.

“The International Energy Agency’s ‘Net Zero by 2050’ report makes perfectly clear there’s no room for new coal, oil or gas supply projects, yet the banks continue funding these projects and the polluting companies pursuing them.

“Continued large scale lending to fossil fuels is not only exposing these banks and their shareholders to increasing levels of climate risk, it’s also undermining our chances of getting the climate crisis under control.”

The resolutions, according to Mr Bertolus, made it “crystal clear” to ANZ, NAB and Westpac that their commitments to net-zero by 2050 were meaningless without ruling out funding for the expansion of fossil fuel projects.

Market Forces’ group’s climate-related resolutions have attracted increasing levels of support from bank shareholders in recent years.

Similar resolutions lodged in 2020 with ANZ and NAB received support of 28 per cent and 26 per cent, respectively, representing a near-doubling from 2019.

NAB has said it plans to release an updated oil and gas policy “in the coming months”, and will be measuring itself against the conclusions of the IEA report.

Stuart Palmer, Head of ethics research at the $5.4bn fund Australian Ethical, said the message of the IEA and Intergovernmental Panel on Climate Change reports was clear.

“Banks cannot credibly claim they are enabling the net zero by 2050 transition when they make loans to companies expanding the coal, oil or gas sectors,” Mr Palmer said.

In a supporting statement for its resolutions, Market Forces said the IEA roadmap provided a comprehensive study of how to transition to a net zero energy system by 2050, while ensuring stable and affordable energy supplies, providing universal energy access and enabling robust economic growth.

“The report provides clear red lines to clarify fossil fuel developments are no longer permissible is we are to achieve the goal of net-zero emissions by 2050, along with trajectories for the reduction of fossil fuels over time,” the group said.

“(The report) projects unabated coal demand falling by 98 per cent by 2050, oil demand by 75 per cent and gas demand by 55 per cent, compared to 2020.

“The IEA has confirmed even having a 50 per cent chance of limiting the global temperature rise to 1.5C means no investment in new fossil fuel projects, beyond those already committed as of 2021.”

Originally published as Climate activist group Market Forces targets big four banks CBA, ANZ, NAB and Westpac