Paulina Duran

SYDNEY, (Reuters) – Australia’s second largest lender, National Australia Bank (OTC), defended its environment credentials Friday after investors complained that its emission disclosures were less comprehensive than those of its Big Four competitors.

Nearly 50% of the questions asked to Chairman Philip Chronican during the meeting were from investors or shareholder groups, who voiced concern over the bank’s reputation as well as the risk of its financing of carbon-intensive sectors.

Johanna Gardner, shareholder said that Commonwealth Bank of Australia and Westpac both reveal their exposure to energy value chain.

NAB, she complained, was only disclosing oil and gaz extraction and coal mining exposures. Not coal ports, refining, or retail distribution.

NAB has not disclosed emissions across the value chain. Chronican, however, denied that NAB was slow to disclose them. Chronican stated that it is the only Australian bank to have clear restrictions regarding direct funding of greenfield oil-and gas extraction.

This bank is also the largest in Australia to have established a goal of reducing oil and natural gas exposures, from 2026 to 2050. It plans to publish emission intensity exposure plans for eight industries over the next 12 month, he said.

Chronican said that “we shouldn’t be making any promise or making any disclosures we are not able to support.” He spoke from Melbourne.

“By next year, we will be able to please you with a clearly-thought-out and coherent position (and) being fully auditable.

Chronican appealed to investors to refuse a shareholder resolution calling to tighten environmental disclosures and policies. This was due to Australian corporate law restrictions.

It was also requested that the bank pledge to stop funding fossil fuel projects, as per the International Energy Agency calls. The resolution was thus rejected. The resolution received 10.8% support from proxy votes before the meeting.