The majority of IAG shareholders has voted against a resolution that would have required the insurer to set and disclose targets for reducing its investment exposure to fossil fuel-linked assets.

Environmental group Market Forces submitted the resolution through shareholders who favoured the move at last week’s annual general meeting (AGM) in Sydney.

The resolution made it to the agenda with support from shareholders who hold 0.017% of IAG stock.

“The biggest drivers of global warming are the coal, oil and gas industries,” Market Forces campaigner Pablo Brait told insuranceNEWS.com.au after the AGM.

“The science is clear these industries need to be phased out as soon as possible and IAG’s investment policies must reflect this. There is not enough information being provided for investors to truly understand IAG’s fossil fuel investment, and therefore how it is managing its own exposure to transitional climate risk.”

The fossil fuel reduction target resolution was contingent on shareholders first approving an amendment to the company’s constitution. Since the majority cast their votes against the proposed amendment, there was no need for a ballot on the investment reduction targets resolution.

Chairman Elizabeth Bryan reiterated that IAG is committed to doing its part to reduce global warming fuelled by the use of non-renewable energy sources.

This week the insurer will launch research exploring the global science of climate change and the implications of extreme weather events in Australia.

She says the business expects to reduce to zero by 2023 its residual underwriting of entities that are involved in extracting fossil fuels or of power generation using it.

The only exception that applies is workers’ compensation, as this “reflects our belief that everyone needs to be protected at work and is aligned with our purpose of making your world a safer place”, she told the AGM.