ANZ bends on carbon disclosures

ANZ has, to some degree, bent to pressure for greater disclosure on its investment in carbon emitting energy projects, but a call for it to report each year on the amount of greenhouse gas emissions it "finances" has been rejected.

The group's 2014 Corporate Sustainability Review provided some insight on the topic, but that might be where it ends. At its AGM yesterday in Melbourne, a resolution to amend the constitution to provide even more detail was voted down by shareholders.

The resolution proposed that directors report each year on their assessment of the quantum of greenhouse gas emissions ANZ was responsible for financing.

The ANZ Sustainability Review report said: "increasing our lending to lower carbon emitting energy projects presents a challenge while electricity generated from coal remains the primary source of power in many of the markets in which we operate."

The bank's chair, David Gonski, told the AGM the bank was the largest financier of renewable energy in Australia.

ANZ said its energy portfolio comprised 23 per cent gas fired generation; 33 per cent coal fired generation; and 44 per cent renewables (predominantly wind and solar).

"In addition to financing renewable energy projects, ANZ supports the energy industry by providing liquidity to market-based mechanisms that support carbon reduction, renewable energy and energy efficiency," the report said.

ANZ said that, "to help mitigate climate change" it would "increase the proportion of lower-carbon (gas and renewables) power generation lending in our project finance business by 15-20 per cent by 2020."

At the AGM, CEO Mike Smith said: "We know that our customers are concerned about climate change. We know that a growing number of Australians see it as a serious and pressing problem. We know that many shareholders are also concerned about it.

"Let me say that decarbonising energy is a shared challenge for governments, for business and for the community. I know that the finance sector will continue to address this challenge and we want ANZ to be playing its part," Smith said.