Macquarie shareholders question its climate change commitment

Macquarie Group shareholders are questioning if the investment giant is still committed to aligning its finances with the goal of net zero by 2050 and if so, how it plans to assess its fossil fuel financing activity for compliance.

Shareholders have requested the resolution, coordinated by Market Forces, be included for consideration at Macquarie's annual general meeting (AGM) to be held on July 23.

Australian Ethical is part of the 160 shareholders on the resolution.

Last year, 35% of shareholders voted for improved climate risk exposure and management.

In its annual report published earlier this month, Macquarie said while it remains committed to the goals of the Paris Accord, its longstanding view remains that a managed "glidepath" to energy transition is the only long-term solution to manage "availability, affordability, and emissions reduction".

"High energy costs, and the accompanying impact on the cost of living, have seen a shift in public policy priorities and greater recognition in recent years that fossil fuels, particularly natural gas, will be required for some time, even as the transition to renewables continues," Macquarie said.

The World Benchmarking Alliance (WBC) gives Macquarie Group an ACT (assessing low-carbon transition) core rating of "D" - unstructured plan execution.

The score indicates that while Macquarie has sufficiently detailed transition planning covering the most material sources of the company's emissions, it does not provide evidence that it is influencing suppliers and investors to reduce upstream greenhouse gas (GHG) emissions.

WBC said if firms disclosed further information on investments and "consistent emissions time series that demonstrate significant emissions reductions", it would move the company to a higher total score.

Shareholders claim the latest disclosures and financing activity appears inconsistent with accepted science-based pathways to meet the Paris climate goals, substantially decrease reported green-energy exposure, and significantly increase reported fossil fuel exposure.

The resolution stated these developments "call into question the credibility of Macquarie's climate representations and exposes the group to growing climate-related financial risks."

To meet public commitments, the resolution said Macquarie must disclose a clear approach to ensuring its fossil fuel financing activity is consistent with the Paris climate goals.

"MQG appears to be reducing its contribution to the energy transition by retreating from direct green energy investment, which fell 65% over two years to just $700 million in FY26," the resolution read.

Macquarie also said in its annual report climate-related opportunities are not expected to be material in the short-term.

"Over the medium- to long-term, opportunities may emerge; however, these are contingent on a range of external factors, including investor demand and market conditions," Macquarie said.

It added in the long-term the range of possible outcomes become increasingly broad and estimating the financial effects beyond the medium-term "would not be decision-useful".