{"id":34536,"date":"2017-08-08T02:00:57","date_gmt":"2017-08-08T01:00:57","guid":{"rendered":"http:\/\/www.climatechangenews.com\/?p=34536"},"modified":"2017-08-08T10:41:18","modified_gmt":"2017-08-08T09:41:18","slug":"commonwealth-bank-sued-over-failure-to-disclose-climate-risks","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2017\/08\/08\/commonwealth-bank-sued-over-failure-to-disclose-climate-risks\/","title":{"rendered":"Australian bank sued over failure to disclose climate risks"},"content":{"rendered":"<p><strong>An Australian couple filed a climate lawsuit against one of the country&#8217;s &#8220;big four&#8221; banks on Tuesday, in a test case with international implications.<\/strong><\/p>\n<p>Shareholders Guy and Kim Abrahams allege\u00a0the Commonwealth Bank of Australia failed to disclose risks it faces that relate to climate change.<\/p>\n<p>Represented by law firm Environmental Justice Australia, they\u00a0will argue in the federal court that the bank&#8217;s <a href=\"https:\/\/www.commbank.com.au\/about-us\/shareholders\/shareholder-information\/annual-reports.html\" target=\"_blank\">2016 directors&#8217; report<\/a> withheld material information.\u00a0If successful, the <a href=\"http:\/\/envirojustice.org.au\/sites\/default\/files\/files\/170807%20Concise%20Statement%20(as%20filed).pdf\" target=\"_blank\">claim<\/a> would force the bank\u00a0to provide more detailed climate risk analysis.<\/p>\n<p>\u201cWe bought Commonwealth Bank shares more than 20 years ago as an investment in our children\u2019s future,\u201d said Guy Abrahams, art consultant and co-founder of non-profit <a href=\"https:\/\/climarte.org\/\" target=\"_blank\">Climarte<\/a>, in a statement.<\/p>\n<p>\u201cWe are deeply concerned about the serious risks that climate change poses to the environment and society. The bank should tell investors about the risks climate change will have on its business.\u201d<\/p>\n<p>His wife Kim, a medical practitioner, added: \u201cThe Commonwealth Bank is Australia\u2019s biggest company and should be a leader in responding to climate change and accurately reporting the risks to shareholders.\u201d<\/p>\n<div id=\"attachment_34541\" style=\"width: 810px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-34541\" class=\"wp-image-34541 size-full\" src=\"http:\/\/www.climatechangenews.com\/files\/2017\/08\/Guy-and-Kim-2-e1502179805283.jpg\" width=\"800\" height=\"450\" srcset=\"https:\/\/cdn.climatechangenews.com\/files\/2017\/08\/Guy-and-Kim-2-e1502179805283.jpg 800w, https:\/\/cdn.climatechangenews.com\/files\/2017\/08\/Guy-and-Kim-2-e1502179805283-112x63.jpg 112w, https:\/\/cdn.climatechangenews.com\/files\/2017\/08\/Guy-and-Kim-2-e1502179805283-300x168.jpg 300w, https:\/\/cdn.climatechangenews.com\/files\/2017\/08\/Guy-and-Kim-2-e1502179805283-768x432.jpg 768w, https:\/\/cdn.climatechangenews.com\/files\/2017\/08\/Guy-and-Kim-2-e1502179805283-600x337.jpg 600w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><p id=\"caption-attachment-34541\" class=\"wp-caption-text\">Guy and Kim Abrahams want Commonwealth Bank to take a lead on climate risk<\/p><\/div>\n<blockquote><p><a href=\"http:\/\/www.climatechangenews.com\/2017\/06\/12\/trump-lawyers-use-extraordinary-trick-quash-youth-climate-case\/\"><strong>Report:\u00a0<\/strong>Trump lawyers try \u2018extraordinary trick\u2019 to quash youth climate case<\/a><\/p><\/blockquote>\n<p>The case reflects mounting concern\u00a0about the potential impact on the financial sector of climate change and the transition to a clean economy.<\/p>\n<p>In particular, disruptive clean technology and climate policies\u00a0are turning once blue-chip energy investments into\u00a0a risky bet. A\u00a0significant portion of listed coal, oil and gas assets are to\u00a0be rendered worthless by\u00a0the international effort to hold\u00a0global warming below 2C.<\/p>\n<p>According to\u00a0campaign group\u00a0Market Forces, CommBank has <a href=\"https:\/\/www.marketforces.org.au\/campaigns\/banks-new\/twodegrees\/\" target=\"_blank\">loaned $6bn<\/a>\u00a0to fossil fuel projects since\u00a0world leaders agreed the Paris climate pact in December 2015. The investments have a lifetime carbon footprint of 2.8bn tonnes of CO2, the most polluting portfolio of Australia&#8217;s &#8220;big four&#8221;.<\/p>\n<p>In June, a heavyweight task force led by businessman and former New York mayor Michael Bloomberg issued <a href=\"https:\/\/www.fsb-tcfd.org\/publications\/\" target=\"_blank\">detailed guidelines<\/a>\u00a0to corporations on measuring and reporting climate risk.<\/p>\n<p>While voluntary, the\u00a0guidelines have been widely\u00a0endorsed by climate campaigners, financial regulators and business leaders.<\/p>\n<blockquote><p><a href=\"http:\/\/www.climatechangenews.com\/2017\/05\/31\/exxon-shareholders-win-historic-vote-climate-transparency\/\"><strong>Report:<\/strong>\u00a0Exxon shareholders win \u2018historic\u2019 climate vote against board\u2019s advice<\/a><\/p><\/blockquote>\n<p>Geoff Summerhayes of Australian Prudential Regulatory Authority has said\u00a0&#8220;climate risks will become an important and explicit part of our thinking&#8221;.<\/p>\n<p>This is not just an environmental concern for the future, he stressed: &#8220;Some climate risks are distinctly \u2018financial\u2019 in nature. Many of these risks are foreseeable, material and actionable now.&#8221;<\/p>\n<p>Called to <a href=\"http:\/\/parlinfo.aph.gov.au\/parlInfo\/search\/display\/display.w3p;adv=yes;orderBy=customrank;page=0;query=%28%20Dataset%3Acommsen,commrep,commjnt,estimate,commbill%20%20SearchCategory_Phrase%3Acommittees%20%20%29%20Dataset_Phrase%3Acommrep%20Content%3Anarev;rec=1;resCount=Default\" target=\"_blank\">give evidence<\/a>\u00a0to a parliamentary committee in March, CommBank chief executive Ian Narev could not say whether\u00a0its portfolio was aligned\u00a0with the 2C limit.<\/p>\n<p>In another <a href=\"https:\/\/www.commbank.com.au\/guidance\/newsroom\/Commonwealth-Bank-comments-on-funding-for-fossil-fuel-projects-201706.html?ei=card-view\" target=\"_blank\">public statement<\/a>, the bank said it had not been approached to fund controversial coal mining ventures in Queensland&#8217;s Galilee Basin, but did\u00a0not rule out involvement.<\/p>\n<p>Environmental Justice Australia lawyer David Barnden said the case would set &#8220;an important precedent&#8221; for other companies on climate risk disclosure.<\/p>\n<p>That could extend beyond Australia, added\u00a0Daniel Wiseman, an Australian-qualified lawyer at London-based firm Client Earth.\u00a0\u201cMany other countries already have similar disclosure requirements to Australia.<\/p>\n<p>&#8220;In the UK, the Bank of England and other financial regulators have now made clear that financial institutions like banks and insurers must consider climate risk.<\/p>\n<p>&#8220;To limit exposure to this sort of litigation, business leaders need to get acquainted, and quickly, with their legal duties and with emerging industry standards.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"Shareholders are taking the Commonwealth Bank to court, alleging that it is misleading investors about its financial position","protected":false},"author":12,"featured_media":34537,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2554,3863,3015,1995],"tags":[136],"coauthors":[3983],"class_list":["post-34536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-carbon-bubble","category-finance","category-divestment","category-pacific","tag-australia","type-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Australian bank sued over failure to disclose climate risks<\/title>\n<meta name=\"description\" content=\"Shareholders are taking the Commonwealth Bank to court, alleging that it is misleading investors about its financial position\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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