Home > Commbank out of Adani but still in deep on fossil fuels

Commbank out of Adani but still in deep on fossil fuels

14 August 2017

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UPDATE: 28 August 2017

Shareholders have lodged a resolution with Commonwealth Bank, proposing that directors should manage the company in line with the goal of holding global warming to less than two degrees.

Read the Market Forces’ media release about the resolution.

View the resolution and supporting statement.

[/cs_text][cs_text]14 August 2017

Just a few days ago we were celebrating a win, with Commbank having joined its big four counterparts and finally ruled out lending to Adani’s Carmichael mega coal mine.

But the celebrations were short-lived, as the bank this morning proved itself to be the most recalcitrant of the big four when it comes to climate change.

Released today, Commonwealth Bank’s Climate Policy Position Statement fell well short of its publicly-made two degree commitments. Consisting of a single page of text, the position statement failed to place any tangible constraints on lending to fossil fuels, leaving the door wide open for Commonwealth Bank to continue lending to projects that expand the scale of the fossil fuel industry.

Clearly Commonwealth Bank doesn’t get it. Two degrees means no new fossil fuels, but the bank has failed to connect those dots, and left the door open to funding more climate destruction.[/cs_text][/cs_column][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/2″ style=”padding: 0px;”][x_raw_content][/x_raw_content][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_inset=”0px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_inset=”0px” separator_bottom_angle_point=”50″ style=”margin: 0px;padding: 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_custom_headline level=”h5″ looks_like=”h5″ accent=”false”]Take action: tell Commbank 2 degrees means no more fossil fuels! [/x_custom_headline]

Name*
First Last
Email Address*
Phone Number
Postcode*
I am... (tick all that apply)
- a CommBank customer
- a CommBank shareholder
Your message (you can personalise and amend this, your name will be automatically added at the end)
To the sustainability manager and board of Commonwealth Bank, As a customer I am extremely disappointed in your latest climate change policy update. While it was a relief to hear you had ruled out lending to Adani’s Carmichael mega mine, the new policy does nothing to improve your approach to climate change. This policy would not have prevented any of your fossil fuel lending in the past 18 months, nor any proposed loans going forward. I am aware that since November 2015, when you first committed to helping hold global warming to below two degrees, Commonwealth Bank has issued $6 billion in loans to coal, oil and gas projects, more than four times your renewable energy lending. You have also financed new oil and gas projects that, over their lifetimes, would create enough CO2 to cancel out Australia’s greenhouse gas abatement efforts to 2030 more than twice over. Your new policy fails to address any of that. There are no restrictions placed on lending to even the most emissions intensive fossil fuel sectors, and commitment to ‘low carbon’ lending is far less that what has already been promised by your competitors. With this do-nothing policy, Commonwealth Bank has proven itself to be by far the most recalcitrant major Australian bank on climate change. As a customer I am outraged by your failure to commit to meaningful action to protect our environment and community. Commonwealth Bank needs to realise that if you want to be taken seriously on climate change, you need to stop financing the expansion of the fossil fuel industry and work towards a rapid transition away from coal, oil and gas and into renewable energy. If not, you should retract your commitment to help hold global warming to below two degrees, as this is highly misleading. If you needed any more evidence about the urgency of climate change, consider that almost half of the Great Barrier Reef has been lost in less than two years due to bleaching. It has taken two years for Commonwealth Bank to go from a commitment on the 2˚C global warming limit to this lacklustre policy. Will we have any reef left by the time you have a policy that actually reflects the scale and urgency of this issue? Please write back as soon as possible and tell me: is the bank is prepared to rule out all new fossil fuels; and can you commit to reducing your loan book exposure to all fossil fuels by 2030, with a commensurate scaling up of your renewable energy exposure? Yours sincerely,
Your message (you can personalise and amend this, your name will be automatically added at the end)
To the sustainability manager and board of Commonwealth Bank, As a shareholder I am extremely disappointed in your latest climate change policy update. While it was a relief to hear you had ruled out lending to Adani’s Carmichael mega mine, the new policy does nothing to improve your approach to climate change. This policy would not have prevented any of your fossil fuel lending in the past 18 months, nor any proposed loans going forward. I am aware that since November 2015, when you first committed to helping hold global warming to below two degrees, Commonwealth Bank has issued $6 billion in loans to coal, oil and gas projects, more than four times your renewable energy lending. You have also financed new oil and gas projects that, over their lifetimes, would create enough CO2 to cancel out Australia’s greenhouse gas abatement efforts to 2030 more than twice over. Your new policy fails to address any of that. There are no restrictions placed on lending to even the most emissions intensive fossil fuel sectors, and commitment to ‘low carbon’ lending is far less that what has already been promised by your competitors. With this do-nothing policy, Commonwealth Bank has proven itself to be by far the most recalcitrant major Australian bank on climate change. As a shareholder I am outraged by your failure to commit to meaningful action to protect our environment and community. Commonwealth Bank needs to realise that if you want to be taken seriously on climate change, you need to stop financing the expansion of the fossil fuel industry and work towards a rapid transition away from coal, oil and gas and into renewable energy. If not, you should retract your commitment to help hold global warming to below two degrees, as this is highly misleading. If you needed any more evidence about the urgency of climate change, consider that almost half of the Great Barrier Reef has been lost in less than two years due to bleaching. It has taken two years for Commonwealth Bank to go from a commitment on the 2˚C global warming limit to this lacklustre policy. Will we have any reef left by the time you have a policy that actually reflects the scale and urgency of this issue? Please write back as soon as possible and tell me: is the bank is prepared to rule out all new fossil fuels; and can you commit to reducing your loan book exposure to all fossil fuels by 2030, with a commensurate scaling up of your renewable energy exposure? Yours sincerely,
Your message (you can personalise and amend this, your name will be automatically added at the end)
To the sustainability manager and board of Commonwealth Bank, As a shareholder and customer I am extremely disappointed in your latest climate change policy update. While it was a relief to hear you had ruled out lending to Adani’s Carmichael mega mine, the new policy does nothing to improve your approach to climate change. This policy would not have prevented any of your fossil fuel lending in the past 18 months, nor any proposed loans going forward. I am aware that since November 2015, when you first committed to helping hold global warming to below two degrees, Commonwealth Bank has issued $6 billion in loans to coal, oil and gas projects, more than four times your renewable energy lending. You have also financed new oil and gas projects that, over their lifetimes, would create enough CO2 to cancel out Australia’s greenhouse gas abatement efforts to 2030 more than twice over. Your new policy fails to address any of that. There are no restrictions placed on lending to even the most emissions intensive fossil fuel sectors, and commitment to ‘low carbon’ lending is far less that what has already been promised by your competitors. With this do-nothing policy, Commonwealth Bank has proven itself to be by far the most recalcitrant major Australian bank on climate change. As a shareholder and customer I am outraged by your failure to commit to meaningful action to protect our environment and community. Commonwealth Bank needs to realise that if you want to be taken seriously on climate change, you need to stop financing the expansion of the fossil fuel industry and work towards a rapid transition away from coal, oil and gas and into renewable energy. If not, you should retract your commitment to help hold global warming to below two degrees, as this is highly misleading. If you needed any more evidence about the urgency of climate change, consider that almost half of the Great Barrier Reef has been lost in less than two years due to bleaching. It has taken two years for Commonwealth Bank to go from a commitment on the 2˚C global warming limit to this lacklustre policy. Will we have any reef left by the time you have a policy that actually reflects the scale and urgency of this issue? Please write back as soon as possible and tell me: is the bank is prepared to rule out all new fossil fuels; and can you commit to reducing your loan book exposure to all fossil fuels by 2030, with a commensurate scaling up of your renewable energy exposure? Yours sincerely,
Your message (you can personalise and amend this, your name will be automatically added at the end)
To the sustainability manager and board of Commonwealth Bank, I am extremely disappointed in your latest climate change policy update. While it was a relief to hear you had ruled out lending to Adani’s Carmichael mega mine, the new policy does nothing to improve your approach to climate change. This policy would not have prevented any of your fossil fuel lending in the past 18 months, nor any proposed loans going forward. I am aware that since November 2015, when you first committed to helping hold global warming to below two degrees, Commonwealth Bank has issued $6 billion in loans to coal, oil and gas projects, more than four times your renewable energy lending. You have also financed new oil and gas projects that, over their lifetimes, would create enough CO2 to cancel out Australia’s greenhouse gas abatement efforts to 2030 more than twice over. Your new policy fails to address any of that. There are no restrictions placed on lending to even the most emissions intensive fossil fuel sectors, and commitment to ‘low carbon’ lending is far less that what has already been promised by your competitors. With this do-nothing policy, Commonwealth Bank has proven itself to be by far the most recalcitrant major Australian bank on climate change. I am outraged by your failure to commit to meaningful action to protect our environment and community. Commonwealth Bank needs to realise that if you want to be taken seriously on climate change, you need to stop financing the expansion of the fossil fuel industry and work towards a rapid transition away from coal, oil and gas and into renewable energy. If not, you should retract your commitment to help hold global warming to below two degrees, as this is highly misleading. If you needed any more evidence about the urgency of climate change, consider that almost half of the Great Barrier Reef has been lost in less than two years due to bleaching. It has taken two years for Commonwealth Bank to go from a commitment on the 2˚C global warming limit to this lacklustre policy. Will we have any reef left by the time you have a policy that actually reflects the scale and urgency of this issue? Please write back as soon as possible and tell me: is the bank is prepared to rule out all new fossil fuels; and can you commit to reducing your loan book exposure to all fossil fuels by 2030, with a commensurate scaling up of your renewable energy exposure? Yours sincerely,
Of course I want to get updates about this campaign from Market Forces!
- Yes
I'd like to volunteer on the campaign to stop banks funding fossil fuels
- Yes

[/cs_column][/cs_row][/cs_section][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_inset=”0px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_inset=”0px” separator_bottom_angle_point=”50″ style=”margin: 0px;padding: 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_custom_headline level=”h2″ looks_like=”h4″ accent=”false”]What the position statement says[/x_custom_headline][cs_text]The key points of Commonwealth’s new position statement are:

A commitment to make $15 billion available to “low carbon projects”, less on a per annum basis than CBA’s Australian peers, and
An aspirational target to reduce the average emissions intensity of the bank’s business lending portfolio, a target that could be achieved simply by lending to one solar farm.

Our analysis shows that, since Commbank made its 2015 pledge to uphold the Paris Climate Agreement, it has poured $6 billion dollars into the fossil fuel industry, more than four times the amount invested in renewable energy. This trend would not have been altered by the presence of the position statement released today.

The new fossil fuel projects financed by Commonwealth Bank will produce enough CO2 over their lifetimes to cancel out Australia’s 2005-2030 emission reduction goal twice over. Undermining Australia’s efforts to reduce greenhouse gas emissions is hardly the behaviour of a major financial institution apparently on board with the goal of keeping global warming below two degrees.

Unlike the bank’s peers in Australia and overseas that are taking concrete steps to avoid the most carbon intensive sectors, Commonwealth Bank clearly lacks either the interest or competency to fulfil its commitment to help hold global warming below two degrees.

Use the form above to contact Commonwealth Bank and voice your disappointment with the new position statement, and call on the bank to rule out lending to all new fossil fuels.[/cs_text][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_inset=”0px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_inset=”0px” separator_bottom_angle_point=”50″ style=”margin: 0px;padding: 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_custom_headline level=”h2″ looks_like=”h4″ accent=”false”]Further reading[/x_custom_headline][x_feature_list][x_feature_box title=”Analysis” title_color=”” text_color=”” graphic=”icon” graphic_size=”60px” graphic_shape=”circle” graphic_color=”#ffffff” graphic_bg_color=”hsl(350, 40%, 40%)” align_h=”left” align_v=”top” side_graphic_spacing=”20px” max_width=”none” child=”true” connector_width=”1px” connector_style=”dashed” connector_color=”#272727″ link_text=”Read our full analysis of Commbank's new policy” href=”https://www.marketforces.org.au/analysis-commbanks-2017-climate-policy-update/” href_title=”” href_target=”” link_color=”hsl(350, 40%, 40%)” graphic_icon=”arrow-circle-right”][/x_feature_box][x_feature_box title=”2 degrees scorecard” title_color=”” text_color=”” graphic=”icon” graphic_size=”60px” graphic_shape=”circle” graphic_color=”#ffffff” graphic_bg_color=”hsl(350, 40%, 40%)” align_h=”left” align_v=”top” side_graphic_spacing=”20px” max_width=”none” child=”true” connector_width=”1px” connector_style=”dashed” connector_color=”#272727″ link_text=”Read our research on how the big banks' lending since they committed to two degrees” href=”/twodegrees” href_title=”” href_target=”” link_color=”” graphic_icon=”arrow-circle-right”][/x_feature_box][x_feature_box title=”Shareholder resolution” title_color=”” text_color=”” graphic=”icon” graphic_size=”60px” graphic_shape=”circle” graphic_color=”#ffffff” graphic_bg_color=”hsl(350, 40%, 40%)” align_h=”left” align_v=”top” side_graphic_spacing=”20px” max_width=”none” child=”true” connector_width=”1px” connector_style=”dashed” connector_color=”#272727″ link_text=”Are you a Commbank shareholder? Sign our resolution calling for proper management of climate change” href=”https://www.marketforces.org.au/commonwealth-bank-resolution-and-complaint-2017/” href_title=”” href_target=”” link_color=”” graphic_icon=”arrow-circle-right”][/x_feature_box][x_feature_box title=”Bank comparison table” title_color=”” text_color=”” graphic=”icon” graphic_size=”60px” graphic_shape=”circle” graphic_color=”#ffffff” graphic_bg_color=”hsl(350, 40%, 40%)” align_h=”left” align_v=”top” side_graphic_spacing=”20px” max_width=”none” child=”true” connector_width=”1px” connector_style=”dashed” connector_color=”#272727″ link_text=”Find out where over 120 Australian banks and credit unions stand on fossil fuels” href=”/comparebanks” href_title=”” href_target=”” link_color=”” graphic_icon=”arrow-circle-right”][/x_feature_box][/x_feature_list][/cs_column][/cs_row][/cs_section][/cs_content]