The Church of England Pensions Board has said that it will vote against the reappointment of directors at banks that have materially backtracked on their climate commitments during the current AGM season.

The funds, worth around £3.5bn, will be lead by ShareAction’s When Banks Step Back dataset, which identifies instances where major global banks have weakened climate-related policies, diluted financing targets for sensitive sectors, or stepped back from previously stated commitments.

Currently, the Pensions Board intends to vote against relevant items at the AGMs of NatWest, Santander, and HSBC, and will monitor other banks’ reporting as proxy season continues.

The Pensions Board’s stewardship framework emphasises that climate change, nature loss, and social instability are systemic risks that require strong, accountable governance from the companies in which it invests.

Laura Hillis, the Church of England Pensions Board’s MD, responsible investment, said: “We recognise that circumstances materially change in some cases. This is not about punishing companies who haven’t been able to meet their commitments despite best efforts. This is about integrity of governance.”

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