‘Not ready’: investors chop down deforestation action

Core Viewpoint - National Australia Bank (NAB) has adopted a conciliatory approach towards shareholder activists regarding deforestation, despite rejecting two resolutions aimed at increasing its commitment to sustainable practices [1][2]. Group 1: Shareholder Resolutions - Two resolutions proposed by the Australian Conservation Foundation were overwhelmingly rejected at NAB's annual general meeting, with over 85% of votes against them [1]. - The resolutions aimed to require NAB to disclose its strategy for managing deforestation risks and to eliminate financing linked to deforestation [7]. Group 2: Bank's Position and Actions - NAB's chair, Philip Chronican, acknowledged the importance of sustainable land use and indicated that the bank is in the early stages of developing standardized reporting on deforestation [2][12]. - The bank is enhancing its use of vegetation and habitat coverage tools to inform climate risk assessments [3]. - NAB is engaging with stakeholders to better understand the complexities surrounding deforestation [4]. Group 3: Industry Context and Reactions - Jolene George from the Australian Conservation Foundation noted that NAB has been a leader among major banks in recognizing biodiversity and ecosystem risks [4]. - There is a growing global momentum against commodities linked to deforestation, with investors increasingly aware of the economy's dependence on nature [8][9]. - The topic of deforestation was also significant at Westpac's annual general meeting, where the CEO retracted a previous commitment to a no-deforestation lending policy [10][11]. Group 4: Financial Performance - NAB shares increased by 1.8% to $42.12 following the annual general meeting [14].