Glass Lewis issued an environmental, social, and governance (ESG) alert for ANZ Group (ASX:ANZ, NZE:ANZ) shareholders ahead of the bank's annual general meeting scheduled for Dec. 18.
The report cited regulatory action and non-financial risk management issues as the basis for the alert.
The financial services firm has encountered a series of regulatory failures related to "long-standing weaknesses" in non-financial risk management, with a record AU$240 million penalty imposed by the Australian Securities and Investments Commission following an investigation.
The Australian Prudential Regulation Authority has raised the operational risk capital overlay on the firm and has accepted a court-enforceable undertaking for the company to rectify persistent weaknesses in its non-financial risk management and risk culture.
The ANZ board's response to these failures has included changes in leadership, remuneration consequences, and the establishment of remediation programs.
The alert's rationale centers on precedent-setting/unique ESG issues and falls under executive pay and other governance issues.