An ANZ shareholder filed a claim in the Federal Court yesterday alleging the bank has failed to properly manage the material risks of climate change and biodiversity loss, and seeking an order that the bank provide more information about its risk management framework.
Lawyers for shareholder Catherine Rossiter, Equity Generation Lawyers, issued a statement saying Rossiter’s concerns stem from disclosures in the bank’s 2022 annual report that acknowledged climate change and biodiversity loss were “emerging risks”, without making clear whether those risks were adequately dealt within its risk management framework.
“Australian financial services law requires that financial institutions properly manage material risks, which include emerging material risks,” the statement said.
Rossiter said: “I think it’s important for shareholders and the community at large to understand if a major bank is taking these risks seriously. That’s why I’ve filed an application seeking more information about ANZ’s risk management systems.”
According to Equity Generation Lawyers, ANZ’s lending to fossil fuel projects increased in the 2021/22 financial year. It described the bank as a “climate and biodiversity laggard”.
Equity Generation represented members of REST superannuation fund in a class action in 2020. In a settlement, REST agreed to recognise climate change as a “material, direct and current financial risk to the fund”.
The firm also represented plaintiffs in a recent appeal to the High Court over the decision of the Victorian government to tax electric vehicle drivers. The High Court ruled that the tax was unconstitutional.
In other ANZ news yesterday, the bank detailed the notable items that will be included in its 2022/23 financial report, which will be released on Monday.
Costs include A$93 million for customer remediation, $120 million for restructuring costs, $37 million for property rationalisation and $28 million for the Compensation Scheme of Last Resort levy.
These costs are partially offset by a $66 million gain from business divestments. Notable items will have a $307 million impact on the bank’s profit. The is double the $154 impact of notable items in 2021/22.