AUB Group has been criticised after admitting it has connections to the controversial Adani Carmichael coal mine project in Queensland.

At AUB’s annual general meeting last week, Wangan and Jagalingou Cultural Custodian Coedie McAvoy, an AUB proxy shareholder, asked a recorded question.

“Now that you know that Adani is destroying my homelands without the free prior and informed consent of Wangan and Jagalingou people, will AUB cease any further involvement with the Carmichael mine, Carmichael Rail Network, the Bowen Rail Company and NQXT port?”

AUB Group Chairman David Clarke told the meeting that “we place some business on behalf of the client that you have mentioned”.

He said AUB is “not their primary broker” and that revenue income from the business is less than 1% of overall revenue.

He said the involvement was reviewed by the board and “not something that was entered into lightly”.

“It was debated and considered, recognising that there are some groups of people, communities, that don’t agree with that particular project or coal mining in general.”

He said AUB understands that it is “controversial” but argued its approach is “responsible”.

“We look at how our economy, the world in general needs to enter into a transition phase. We cannot, in our view, flip a switch to get us to where we would all like to get to.

“So we see it as part of being responsible to insure those risks and at the same time make sure that the people that we are dealing with are also on an appropriate path to a renewable future.”

Mr Clarke said AUB was an adviser, not an insurer, and questioned whether it was appropriate to refuse to work with clients who may have a small exposure to the coal mining industry, but most of their work relates to other sectors.

He also said recent events have proven that coal and gas remain important as the world transitions to renewables.

“We are not providing a product, we are providing a service and the question becomes, where do you draw the line?

“Just because one group says it’s not legitimate doesn’t necessarily mean there is a veto on the whole thing.”

Climate campaign group Market Forces says tip-offs point to AUB being involved in the Adani project in some way from September last year. It believes the involvement relates primarily to the rail line along which the coal is transported.

Market Forces also says AUB’s acquisition of SRS Broking in July this year has increased its exposure to the coal mining industry.

“Austbrokers’ work for the Adani Carmichael coal project has now been exposed publicly,” Market Forces said.

“To be known as arranging insurance for the essential infrastructure of a massive new coal mine, while millions around the world suffer the impacts of the climate crisis is a significant reputational risk. It is the main reason why 45 major insurers have vowed never to go near the Carmichael project.

“If not for the sake of those suffering from floods and fires, then for its shareholders and business partners, AUB Group must commit to no further work for Adani Carmichael coal.”

AUB declined to answer questions from insuranceNEWS.com.au aimed at clarifying its involvement with the Carmichael mine.

“AUB operates in about 540 locations globally and works with about 1 million clients and, while we do not provide specifics on individual partners, clients or product solutions, what we can say is that we provide our clients with insurance risk management advice across a broad range of industries, including ports, road and rail,” a spokesperson said.

“We are committed to ESG and take a measured approach when engaging with businesses and always consider a range of stakeholders when it comes to our ESG commitments, including communities and the environment.

“At AUB we are committed to providing the highest quality independent advice to our clients and we are not afraid to challenge them if we feel that they are not upholding the standards to which we subscribe.

“We continue to explore ways in which we can reduce the impact of our organisation, and our clients, on climate change and other environmental considerations.”