ANZ shareholders vote to demand disclosure of lending linked to deforestation and block executive pay plan at the bank’s AGM

Shareholders at ANZ’s AGM late last year delivered an unmistakable signal to the nation’s fourth-largest bank: provide greater transparency on nature-related finance risks and executive accountability.

Investors not only registered a “strike” against the bank’s executive remuneration report but also delivered a world-record vote in favour of a deforestation resolution — underscoring rising investor concern about the lender’s approach to nature-related financial risks.

A resolution calling on ANZ to disclose deforestation linked to its lending garnered support from 22.7% of shareholders that voted — the highest level of backing for such a resolution on record, topping a previous 18% vote at a PepsiCo meeting last year. A second, related resolution calling on the bank to set out a strategy to eliminate financed deforestation won 11.3% support.

The Australian Conservation Foundation (ACF), which co-filed the motions along with investor group SIX, said the result sent “a clear message” that shareholders expect Australia’s biggest financial institutions to take biodiversity and nature risk seriously.

"This is a world record vote in favour of a deforestation resolution — one ANZ can't ignore,” ACF head of corporate advocacy Jolene George said. “ANZ's investors and the broader community expect the bank to monitor for deforestation and take action to protect Australia's bushland from bulldozers."

"The support for the resolution demonstrates that investors are increasingly aware of the economy's dependence on nature."

"ANZ is at an early stage in understanding deforestation risk. While many banks are monitoring deforestation, ANZ is yet to undertake mapping or demonstrate it has the capabilities to check whether its customers are engaging in deforestation."

"We urge ANZ to wake up to nature-related risk, assess its exposure and invest in internal capability to identify and monitor deforestation linked to its lending," George said.

SIX Co-Founder and Chief Executive Adam Verwey said the votes represented a clear signal from investors they expect ANZ to prioritise nature and biodiversity risk.

"Nature risk has emerged as the top ESG consideration for investors, and the pressure to act is only going to increase," he said. "How is it that ANZ, with its $6 billion in profit and dozens of sustainability staff, knows less about its own deforestation risk than the NGO proposing the resolution?"

In a second shareholder move, more than 32% of shareholders opposed ANZ’s remuneration report, surpassing the threshold that constitutes a strike under Australian corporate governance rules — a rebuke to the bank’s executive pay practices amid a backdrop of regulatory penalties and internal controversy. This continued dissent follows a record A$240 million penalty in late 2025 for widespread misconduct, including misleading disclosures.

These votes reflect a broader trend of shareholder activism in Australia’s corporate sector, where investors are increasingly willing to challenge boards on environmental, social and governance issues.

For ANZ, the message at last year’s AGM was clear: shareholders are pushing beyond traditional financial measures and demanding that the bank address its role in environmental degradation, even as it seeks to balance profitability with a sustainable transition.