Yahoo Finance Westpac to probe climate policy "anarchy"
Westpac has agreed to examine the influence lobby groups like the Business Council of Australia (BCA) have on its approach to climate and energy policy, following shareholder action.
The major bank’s decision follows a shareholder resolution submitted by the Australasian Centre for Corporate Responsibility (ACCR) late last week, calling on Westpac to scrutinise the impact of industry groups’ like the BCA on its approach to climate policy.
The BCA recently contended that Labor’s proposed 45 per cent emissions reduction target would be “economy wrecking”.
Last week, Energy Security Board chairwoman and National Energy Guarantee (NEG) architect Kerry Schott described the current state of the nation’s stalled energy policy as “anarchy”.
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Commenting on Westpac’s move today, the executive director of the ACCR, Brynn O’Brien, described it as good news for both investors and the big four bank.
“Financial membership of trade associations that undermine ambition on climate goals is fundamentally misaligned with Westpac’s interests. Adverse climate lobbying also comes with profound risks to long-term shareholder value.”
The ACCR withdrew the resolution after Westpac agreed to examine its relationship with lobby groups like the BCA.
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O’Brien said the BCA is one of the key lobby groups which has spent the last 10 years or more “hindering meaningful climate and energy policy”.
“Lobby groups are accountable to their member companies and member companies are accountable to their investors. This is basic corporate governance.”
Westpac’s move comes just days after a major report from the Intergovernmental Panel on Climate Change (IPCC) on the threat of a 1.5°C increase to global warming.
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“This report is a clear warning to companies that they must reconsider their relationships with industry associations that continue to block effective climate action against the interests of members,” O’Brien said.
More companies can expect similar scrutiny, director at climate innovation initiative, Climate-KIC, Kate Mackenzie added.
“Companies can expect their statements and commitments on climate change will be compared to actions of organisations they support,” she said.
“History demonstrates that big industry groups have great influence on Australian climate policy, while the new IPCC 1.5C report shows us that delaying urgent and substantial action on climate change is irresponsible.”
According to Moody’s Investors Service, Australian states face immediate and major challenges from climate change, thanks to lost revenue and greater health and infrastructure spending.
