Paulina Duran

SYDNEY – BlackRock Inc., the largest money manager in the world, voted against a resolution calling on Commonwealth Bank of Australia to stop funding fossil fuel projects.

CBA’s biggest shareholder said that it opposed the resolution. It also requested the bank publish targets to reduce fossil fuel exposures in line with net zero emissions of greenhouse gases by 2050. This was too prescriptive.

BlackRock stated in a statement posted on its website that “it” risks unduly restricting management’s ability make business decisions.

“Further the company has shown its commitment to integrating Climate Risks into its Long-term Strategy, Task Force on Climate Related Financial Disclosures (TCFD-aligned Reporting since 2018) and a declared goal of zero net emissions by 2050.

Jack Bertolus, activist group Market Forces who helped investors organize the resolution, stated that the lack of support was an excellent example of asset managers failing to meet their net zero obligations.

BlackRock holds a significant portion of the $32 Trillion in assets total that supports groups that have committed to reducing greenhouse gas emissions by net zero by 2050. These include the Institutional Investors Group on Climate Change in Europe (IIGE) and the United Nations’ Principles for Responsible Investment.

Just 14% voting shareholders at Australia’s most important lender backed the resolution. It comes just before United Nations’ COP26 global climate negotiations in Glasgow this month. Australia will then be subject to pressure to lower its carbon emissions.