ANZ has recommended shareholders vote against resolutions aimed at strengthening its climate transition plan and deforestation policies, citing existing disclosures and engagement efforts. The bank’s board believes its current approach adequately addresses these concerns.
Material Actions and Disclosures
ANZ’s Large Emitters Engagement Program (LEEP) covers selected higher-emitting customers in both energy and non-energy sectors. This includes its largest emitting customers, those with Safeguard Mechanism facilities, and sectoral pathway customers meeting threshold criteria, including minimum credit limits. LEEP evaluates customers’ transition plans across governance, targets, risk management, and disclosure categories, rating them as ‘Emerging’, ‘Progressing’, or ‘Mature’. ANZ expects customers rated ‘Emerging’ to strengthen their plans and reach at least the ‘Progressing’ phase within two years of continuous engagement.
ANZ has engaged constructively with the Australian Conservation Foundation on these issues and appreciates its perspective. The bank has disclosed that it may cap, reduce, or exit customer relationships where customers fail to meet its CTP expectations, though it has not established clear, publicly disclosed thresholds at which customers pursuing activities incompatible with Paris-aligned pathways become ineligible for new or renewed finance.
Forward Commitments
ANZ aims to continue improving its data, due diligence, customer engagement, and risk-management capabilities. It will consider whether further changes are warranted as its capabilities develop. The bank will also continue to assess the maturity of its customers’ transition plans and develop account plans for those that have not demonstrated sufficient progress.
ANZ’s board recommends shareholders vote against resolutions in items 7, 8, and 9, stating that these resolutions are unnecessary given the bank’s expanded disclosures on how it identifies, assesses, and manages risks related to deforestation.