At CBA’s annual general meeting last year, a resolution from Market Forces sought to stop the bank funding new fossil fuel projects. It received 14 per cent support in proxy votes. It was opposed by the board, with CBA chair Catherine Livingstone saying the bank had a role in supporting fossil fuel clients in their transition.

On Wednesday, CBA chief executive Matt Comyn said he disagreed with Market Forces’ characterisation of the new targets. He acknowledged that it would continue to be a topic of debate in the lead-up to its next annual general meeting in October, as he talked up the commitments made in the bank’s first standalone climate report.

“We’ve increased our ambition and reduced the temperature scenario that we are working towards, which is 1.5 degrees. We’ve signed up to the Net-Zero Banking Alliance. There’s a number of commitments that come with that, including sector level targets, and interim 2030 targets,” he said.

“For us, it’s about being very clear on our ambition, and very transparent about that and we look forward to the opportunity to continue to engage with a variety of stakeholders, and ultimately will be guided by what’s in the best interests of the country.

“We believe we’re able to do that both supporting the socioeconomic transition, and also the decarbonisation,” he said.

The bank was also criticised on Wednesday by environment group 350.org. Campaign director Kelly Albion described the targets as “nothing more than smoke and mirrors”.

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“As the CommBank board reviews their oil and gas lending policy this year, we expect to see words met with action - no more financing of new or expanding fossil fuel projects and companies, and a complete phase out by 2030 of existing exposure,” she said.

The debate comes after Labor introduced its signature climate legislation to parliament, pledging to cut emissions by 43 per cent from 2005 levels by 2030. The government refused to bow to pressure from the Greens, who want funding blocked for all fossil fuel projects.

CBA welcomed the 43 per cent target in its report on Wednesday, saying it was “ambitious but achievable”. The bank also estimated that the transition to net zero emissions will require $2.5 trillion to $3 trillion of investment by 2050.