National Australia Bank (NAB) commenced its annual general meeting (AGM) facing increased shareholder scrutiny regarding its lending practices to customers allegedly involved in clearing natural forests. NAB, a leading Australian lender to the agricultural sector, has come under fire from conservation groups who connect the industry with deforestation. A shareholder resolution called for the bank to reveal the extent of its lending to clients engaged in clearing natural forests and to develop a plan to eliminate such financing.
Chairman Philip Chronican addressed shareholders, acknowledging the rising environmental concerns. “An issue that is of growing concern to stakeholders…is that of deforestation. NAB is committed to managing nature-related risks…recognising the impact that they can have on sustainable agriculture, biodiversity and climate,” Chronican stated, adding that the bank is actively engaging with customers, industry groups, and government bodies on this issue. He assured shareholders that NAB would continue improving its methods for evaluating and managing deforestation risks.
Preliminary votes showed nearly 14 per cent of investors supported the resolution demanding disclosure of financing related to deforestation, while 10.4 per cent backed a resolution for a strategy to eliminate such financing. While a majority of shareholders did not express concern, these results signal escalating pressure on lenders from activist investors pushing for increased investment in environmental and sustainability initiatives.
The NAB is one of Australia’s largest banks, offering a range of financial services including personal banking, business banking, and wealth management. As a major agricultural lender, it plays a significant role in financing the nation’s farming sector. Last week, Westpac’s AGM experienced disruptions from anti-fossil fuel protestors objecting to the bank’s gas industry lending. A resolution questioning the stringency of Westpac’s policy on assessing customers’ scope 3 emissions garnered 14 per cent support from proxy votes.