Biggest African Bank Rejects Resolution on Oil, Gas

(Bloomberg) -- Standard Bank Group Ltd., Africa’s biggest bank, has blocked a request to table a shareholder resolution on disclosing its oil and gas lending activities at its annual general meeting.

The resolution, requested by investor activists the Raith Foundation and Just Share NPC, also sought disclosure about lending to pipeline projects and coal-to-liquids plants.

“Raith and Just Share have asked Standard Bank to provide them with the legal basis” for rejecting the proposal, the groups said in a statement. Standard Bank told them a resolution was a last resort after engagement with management had been exhausted, they said.

Last month, Johannesburg-based Standard Bank became the first major South African lender to release its policy on funding thermal coal and power projects. The Johannesburg-based company said it has made considerable progress on improving climate-risk disclosure.

“Standard Bank has significantly increased its focus on climate risk over the past 12 months,” it said in a response to questions, without addressing the specific reason for rejecting the resolution. “For the time being, access to reliable data across our Africa operations remains a challenge.”

Investec Ltd., a smaller South African bank, on March 31 published its fossil fuel policy, which limits investment in coal projects. Absa Group Ltd. has agreed to a non-binding resolution on climate risk exposure and opportunities at its annual general meeting.

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