'Makes really good business sense': Climate change a priority for Suncorp

Suncorp chairwoman Christine McLoughlin has called for businesses to do more to mitigate the risks of climate change as it faces increasing pressure from green lobbyists.

Speaking at the company's annual general meeting on Thursday, Ms McLoughlin addressed the recent climate change strikes around Australia saying environmental issues were a "high priority" for the business.

Suncorp chairwoman Christine McLoughlin.Credit: Wayne Taylor

"As a bank and insurance company, understanding weather change and climate risk and how this impacts our customers and our business makes not only good environmental sense but helps us protect and enhance shareholder value and makes good business sense," Ms McLoughlin told Suncorp's AGM in Brisbane.

Many thousands of protesters joined rallies around the country last week demanding more government action on climate change.

Suncorp faced a number of questions over its green credentials and climate change policies at the annual general meeting including from environmental lobby group, Market Forces, which urged greater disclosure of its targets to cut ties with fossil fuel companies.

"If Suncorp wants to claim that its business is in line with keeping global warming below 1.5 degrees and the Paris Agreement ... then it can't be supporting the expansion of the oil and gas industries," Market Forces campaigner Pablo Brait said.

Ms McLoughlin said Suncorp's business policies were in line with the transition that was taking place in the broader community in regards to moving away from reliance on fossil fuels.

She said the company's exposure to fossil fuels made up less than 0.5 per cent of the business.

"Addressing climate change is a matter the board considers a high priority," Ms McLoughlin said.

On accountability in banking, Ms McLoughlin said this year had been a defining period for the financial services industry, and the Hayne royal commission marked a new era of "transparency and accountability" for the industry.

"What has become abundantly clear is that we are operating in a permanently redefined environment where boards and management have to deliver to customer, shareholder and community expectations," she said.

Ms McLoughlin said Suncorp had already implemented several recommendations identified by the royal commission and improved its self-assessments to the Australian Prudential Regulation Authority (APRA).

"The APRA self-assessment, which was conducted by the board last year, highlighted that, while Suncorp’s culture benefits from a clear and consistent tone from the top, and governance practices are well established, there are areas for improvement and we have been addressing those."

In trading, Suncorp's share price was down 1.02 per cent to $13.54.