More investors back proposal to end Mizuho's coal lending

It could push Japanese banks to live up to promises of ending the practice.

More investors are getting behind a resolution to curb coal project lending, which shareholders of Mizuho Financial Group are expected to consider this week, reports Reuters.

Advisory groups such as the Institutional Shareholder Services group and Glass Lewis, which advised funds worth more than $35 trillion, are backing the proposal. If passed, it could push Japanese banks to heed to recent commitments of ending coal lending as climate concerns grow.

Mizuho’s board opposes the resolution, which requires a two-thirds majority to pass. It has already put in place metrics to measure against Paris goals so changing its articles of incorporation is unnecessary, the bank said in its response to the resolution.

In April, Mizuho said it would stop financing new coal power projects, bowing to pressure from investors and NGOs such as Kikonet, a shareholder which is sponsoring the resolution.

Here's more from Reuters.

Photo courtesy of Wikimedia Commons.