Activist investor Market Forces has written to Commonwealth Bank (CBA), calling on the ASX 200 financial institution to ensure that its financing will no longer be used for the purpose of new fossil fuel projects.
The Wednesday press release from Market Forces comes amid concerns that CBA is not taking sufficient action to reduce its fossil fuel financing.
“While the bank’s new targets fall short of aligning to a 1.5-degree global warming limit, a more pressing concern is the bank’s ongoing willingness to finance companies and projects expanding the scale of fossil fuels,” Market Forces said, referring to the bank’s recent annual and climate reports.
To remedy these concerns, Market Forces, on behalf of over 200 CBA shareholders, revealed its intention to submit a shareholder resolution at the bank’s October 12 annual meeting, calling on it to report on how “the company’s financing will not be used for the purpose of new or expanded fossil fuel projects.”
Julien Vincent, executive director of Market Forces, chastised CBA for not getting the basics right when it comes to climate action, adding that continuing to enable fossil fuel expansion represents a fundamental failure that needs urgent correction.
“The notion that CBA could increase its financed emissions in oil and gas over the rest of this decade is tone deaf to the urgency of the climate crisis,” Vincent said.