Ethical Stewardship
Cutting off financing to fossil fuel expansion
To reach net zero by 2050, we need to switch off the funding that enables unsustainable fossil fuel expansion, and we need massive investment in clean energy systems.
Large financial institutions are the key to achieving this, as they can support the massive shifts in capital needed to combat climate change.
Funding a low-carbon future
For years we have leveraged our investment in the finance sector to help turn off sources of funding that enable unsustainable fossil fuel expansion to continue. We actively campaign for large financial institutions to:
Influencing the finance sector to cut fossil fuels
Change of this magnitude requires coordination and persistence. We use all our stewardship tools to influence the banks and insurers, including collaborating with civil society, co-filing shareholder resolutions, AGM activism, using the media to call out recalcitrant companies, funding research, and where necessary, divestment.
We cannot take credit for all this work. We work with Australian and overseas investors, civil society organisations including Market Forces and the Australian Centre for Corporate Responsibility. All the wins we have had to date are attributable to pressure that has been applied from every direction.
Where we draw the line
- We expect lenders to restrict both project and corporate loans to avoid funding high-emission activities.
- We expect insurers to limit underwriting of projects not aligned with the Paris Agreement.
- ANZ is excluded for not aligning institutional lending with the Paris Agreement.
- CBA re-entered our investible universe (after 15 years) in 2024 after tightening fossil fuel policies.
- We divested from Travelers and Arthur J Gallagher over inadequate climate policies.
- We divested from Marsh McLennan due to vague climate commitments.
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