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08 August 2017 - CBA hit with lawsuit from shareholders over climate change
Commonwealth Bank of Australia (CBA)
Source -
Where - Australia
Business line - Corporate Services

The Commonwealth Bank of Australia (CBA) has been hit with a lawsuit over allegations it failed to properly report on climate change risk in its annual review.

Activist group Environmental Justice Australia has teamed up with two small-time investors (often referred to as ‘mum-and-dad investors’ in Australia) to take legal action against the bank.

The group claims this is the first case of its type because it brings into question how large companies should address the impact of climate change on their business.

Guy Abrahams, an art curator, and medical practitioner Kim Abrahams, accuse the bank of breaching the Australian Corporations Act by failing to provide an accurate and fair picture of its financial position and performance.

“Commonwealth Bank takes its statutory reporting obligations very seriously and rejects that the 2016 Annual Report is not compliant with those statutory reporting obligations,” said CBA in a statement.

“Commonwealth Bank understands that climate change is a topic of public and shareholder interest and we are committed to playing our part in limiting climate change to well below two degrees, in line with the Paris Agreement and supporting the responsible global transition to net zero emissions by 2050,” it added.