Macquarie's Fossil Fuel Gamble Threatens Climate Goals

Macquarie Group's aggressive expansion into fossil fuel financing has raised concerns about its commitment to climate goals. The company, which operates across 30 markets globally and boasts over A$700 billion in assets under management, has made significant investments in new gas export projects, including Amigo LNG and Texas LNG. This approach is at odds with the Paris Agreement's goal of limiting global warming to well below 2°C.

Macquarie's Chair Glenn Stevens defended the company's strategy, stating that its climate modelling had found no material impact on its business over the next five years. However, critics argue that this modelling significantly underestimates the economic impacts of climate change and fails to account for the catastrophic consequences of a 3°C hotter world.

The company's actions have been met with criticism from shareholders, including Vision Super, which has called for Macquarie to outline how its financing of big gas projects aligns with global climate goals. As new chief executive Greg Ward prepares to take the reins this November, he will have an opportunity to address these concerns and rewrite the company's history.