Blackrock rejects call for Australia’s CBA to stop fossil fuel funding

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SYDNEY, October 14 (Businesshala) – BlackRock Inc. (BLK.N), the world’s largest money manager, has voted against a proposal by the Commonwealth Bank of Australia (CBA) (CBA.AX) to halt funding of new fossil fuel projects , it said. Late Wednesday.

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The CBA’s largest shareholder said it opposed the proposal, which asked the bank to publish targets to cut its fossil fuel exposure in line with net zero greenhouse gas emissions by 2050, as it was overly prescriptive.

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“(It) runs the risk of unreasonably impairing management’s ability to make business decisions,” BlackRock said in a statement on its website.

“In addition, the company has demonstrated its commitment to integrate climate risks into its long-term strategy, which includes a Task Force on Climate-Related Financial Disclosure (TCFD)-aligned reporting from 2018 and a stated goal of net zero emissions by 2050. target is involved.”

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The lack of support for the resolution was a perfect example of an asset manager failing to meet his net zero commitments, said Jack Bertolas of activist group Market Forces, which helped investors organize the resolution.

BlackRock is responsible for a large portion of the $32 trillion in net assets subsidiary groups that have announced a commitment to limit greenhouse gas emissions to zero by 2050, including the Institutional Investor Group on Climate Change in Europe and the For Responsible Investment UN supported principles. .

The resolution, backed by only 14% of voting shareholders of Australia’s largest lender at an annual meeting on Wednesday, comes ahead of the UN’s COP26 climate talks in Glasgow later this month, when Australia is under pressure to reduce its carbon emissions. Will happen.

Reporting by Paulina Duran in Sydney Editing by Mark Potter

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