Standard Bank has reiterated its commitment to a climate-related risk approach and defended its board members, after activist organisation Just Share questioned the election or re-election of directors that have ties to fossil fuel operations.
The organisation said seven of Standard Bank’s 18 board members are conflicted on climate change-related matters by virtue of their ties to the fossil fuel industry and urged that they not be re-elected to the board at the bank’s annual general meeting on June 26.
Just Share listed the names of the directors that it is concerned about, many of which also serve, or have served, at fossil fuel-involved companies including Sasol, Exxaro and BP Southern Africa.
Just Share stated that five of the seven climate-conflicted directors offered themselves for re-election to the board.
In response to Just Share’s press release on June 8, Standard Bank says the directors that the organisation is singling out are all nonexecutive directors.
“They bring a diverse set of skills and experience, across a range of industries, and are valuable members of the board with a proven record of leadership and integrity. Nonexecutive directors inevitably serve on boards of different companies.
“In all instances, a director’s conflict of interest is governed by the Companies Act and arises in instances where the board has to take a decision in respect of a company a director may have an interest in,” Standard Bank explains.
The bank adds that the board is satisfied that these directors continue to fulfil their fiduciary responsibilities to the group in an exemplary manner and recommends their re-election by shareholders.
“The Standard Bank board’s decision not to allow the usurping of its role by stakeholders that do have any fiduciary responsibilities to the company does not suggest that the board is deviating from its environmentally responsible record and path.” it stresses.
Standard Bank points out that it has significantly increased its focus on climate risk, and is in the process of developing its climate-related risk approach in alignment with the guidelines of the Task Force on Climate-related Financial Disclosures.