On Wednesday 14 October, we made the ties between Commonwealth Bank of Australia and the destruction of our forests & bush a major talking point at their Annual General Meeting (AGM) in Sydney.
At the AGM a solid 16% of shareholders defied the board to vote in support of our resolution asking the bank to disclose a pathway to deforestation-free finance.
This follows on from our win in July, when CBA disclosed the extent to which they believe they are exposed to deforestation in their annual report.
Although there were some issues with the bank’s analysis, this led to SIX and our partners deciding not to lodge one other resolution on this issue - and instead take that issue up directly with the bank.
You can listen to our campaign partners and supporting shareholders with the AGM webcast on the bank's website (you may need to enter your email to view the recording).
It's a long one! So skip to 3.01.00 to hear:
Telling a powerful story about the problem we face and the bank’s role in it, in front of media and other shareholders, is a key reason behind SIX and our partners being inside the AGM. Particularly given that the bank’s position seems to be that they are doing enough on the issue of financed deforestation!
16% vote is a strong first year vote. It sets a solid foundation for SIX and our partners to continue campaigning in 2027.
We also know that big institutional investors (like super funds) are more inclined to support resolutions focused on asking for disclosure i.e. for the bank to provide more information. Resolutions that are focused on asking for action - in this case, for the bank to set a pathway to deforestation-free finance - can be harder to build support for. So 16% backing for an action-focused resolution is a strong achievement and a clear message to the board.
Last year a similar resolution to another big bank ANZ received 11.3% - suggesting the big investors we’ve been engaging with have come a decent way in their support for deforestation-free finance in under 12 months!
SIX’s CEO and co-founder Adam Verwey also spoke (at 43.03) asking the bank about their human rights policy, on behalf of our friends at ActionAid Australia:
“CBA created a human rights grievance mechanism in 2023, available to First Nations persons in Australia. While this is a great thing to have, all the other big banks have a human rights grievance process available to all communities that face human rights impacts from that banks lending. Does the bank plan to expand its human rights grievance mechanism to include all impacted communities, aligned with the other big banks?”
Chair Paul O’Malley’s response was reflective, noting that: “There are some things we [CBA] do better than others, and some things we can always learn from others.” He indicated one of the purposes of the AGM was for the board to listen and reflect on the questions asked, and to go back and consider these with management, ending on “we can take on notice your challenge to us today.”
This was a reminder of the power of a thoughtful question bringing a vital issue into the AGM room and to the attention of the board, and we’ve already reported back to ActionAid Australia so they can follow up in their conversations with the bank.
CBA still clearly has a way to go in setting a pathway to deforestation-free finance and moving beyond awareness-building to tangible action.
SIX, ACF and Australian Ethical will continue to engage with the bank, including following up with them directly in the weeks following the AGM.
If you’re keen to go more into the detail, check out ACF and SIX’s Corporate Engagement Guide which has the steps we’re talking to the bank about.
As always, we’ll take some time now to debrief, evaluate the campaign so far, and plan out our collaboration for the new year.
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