Shareholders walk back on Macquarie climate transparency push

Around 18% of Macquarie shareholders have voted in favour of the resolution for the investment giant to disclose how its fossil fuel financing aligns with its commitment to the Paris Agreement.

This is major walk back from last year, when 35% of shareholders voted for improved climate risk exposure and management.

This year, major international investors had backed the Market Forces shareholder resolution. They include CalPERS, the largest pension fund in the United States; the New York City Pension Funds; KLP, Norway's biggest private pension fund; and Storebrand, Norway's largest asset manager. Australian super fund Australian Ethical is also part of the 160 shareholders on the resolution.

Australian Ethical head of equities Nathan Parkin said, "Capital allocation decisions made today will shape the resilience of the business for decades to come."

"Shareholders need sufficient information to assess whether Macquarie's financing decisions are consistent with its stated strategy and support long-term value creation. Greater disclosure would help investors understand how those decisions align with the company's public commitments," he added.

Shareholders in the resolution claimed the latest disclosures and financing activity appeared 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."

The Macquarie board recommended shareholders to vote against the resolution noting it is not in the best interest of the company.

"The advisory resolution in Item 5b. mischaracterises the extent of our involvement by solely focusing on the balance sheet positions in green energy which have fallen, as foreshadowed, due to the strategic shift to a fiduciary model and the reduced carrying value of remaining balance sheet investments," Macquarie said.

"As noted in the FY2026 MGL Sustainability Report, and to ensure consistency in disclosure, Macquarie expects to disclose emissions associated with assets under management in the next reporting period, providing further insight into its portfolio."

Macquarie said it will continue to monitor regulatory and industry developments when considering any further disclosures in future reporting periods including in relation to exposures to carbon-intensive industries where relevant.

In its annual report, 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.

Macquarie also said 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".