Guest essay by Eric Worrall
As world fossil gas demand surges, a shareholder decision by Commonwealth Bank of Australia to cease fossil gas lending was overwhelmingly rejected by 86% of shareholders.
Investors reject name for Australia’s CBA to cease fossil gas funding
CONTRIBUTOR Paulina Duran
OCT 13, 2021 3:45AM EDT
y Paulina Duran
SYDNEY, Oct 13 (Reuters) – Commonwealth Bank of Australia CBA.AX traders on Wednesday overwhelmingly rejected a decision calling for the lender to cease financing new fossil gas tasks, highlighting the resistance within the resources-reliant nation to local weather motion.
The decision, backed by simply 14% of voting shareholders on the financial institution’s annual basic assembly, comes forward of the United Nations’ COP26 local weather talks in Glasgow later this month, when Australia shall be below strain to scale back its carbon emissions.
The decision additionally requested Australia’s largest lender to publish targets to chop its fossil gas exposures, per internet zero greenhouse fuel emissions by 2050, however was not supported by CBA’s board.
“The Board remains fully committed to CBA playing its part in limiting climate change, in line with the goals of the Paris Agreement, and supporting the transition to net zero emissions by 2050,” Chairwoman Catherine Livingstone instructed traders on the digital assembly.
Read extra: https://www.nasdaq.com/articles/investors-reject-call-for-australias-cba-to-stop-fossil-fuel-funding-2021-10-13
Blackrock, one of many world’s largest asset administration corporations, which has made a giant tune and dance about demanding everybody assist Net Zero the previous couple of years, was one of many shareholders which OPPOSED the CBA fossil gas ban decision.
Blackrock rejects name for Australia’s CBA to cease fossil gas funding
By Paulina Duran
SYDNEY (Reuters) – BlackRock Inc, the world’s largest cash supervisor, voted in opposition to a decision calling for Commonwealth Bank of Australia (CBA) to cease financing new fossil gas tasks, it stated late on Wednesday.
CBA’s largest shareholder stated it opposed the decision, which additionally requested the financial institution to publish targets to chop its fossil gas exposures per internet zero greenhouse fuel emissions by 2050, as a result of it was overly prescriptive.
“(It) risks unduly constraining management’s ability to make business decisions,” BlackRock stated in a press release on its web site.
“Further, the company has demonstrated its commitment to integrating climate risks into its long-term strategy, including Task Force on Climate-related Financial Disclosures (TCFD)-aligned reporting since 2018 and a stated goal of net zero emissions by 2050.”
Read extra: https://finance.yahoo.com/news/blackrock-rejects-call-australias-cba-081555838.html
As the wheels come off COP26, and information spreads of China, India and Europe’s catastrophic self inflicted coal shortages, traders just like the CBA shareholders are waking up fossil fuels will stay a vital part of the world economic system for the foreseeable future.