Paulina Duran

SYDNEY, Reuters – BlackRock Inc. (NYSE:), world’s biggest money manager, voted no to a resolution asking for the Commonwealth Bank of Australia (OTC) (CBA), to cease funding new fossil fuel projects. It said this late Wednesday.

CBA’s largest shareholder voted against the resolution. The bank was also asked to set targets for reducing fossil fuel exposures in line with net zero global warming by 2050. However, this request was excessively restrictive.

BlackRock released a statement online stating that it was concerned about “[It] risks unduly restraining management’s ability to take business decisions,”

“Further, company has displayed its commitment towards integrating climate risk into its long term strategy. This includes Task Force on Climate related Financial Disclosuress (TCFD),-aligned reports since 2018, and a declared goal to net zero emissions by 2020.”

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 is responsible for large amounts of $32 trillion in total assets that support groups which have made commitments to reduce greenhouse gas emissions to zero net by 2050. This includes the Institutional Investors Group on Climate Change in Europe, and the United Nations-backed 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.