 Bloomberg -- Mizuho Financial Group Inc. investors rejected a shareholder climate resolution at a annual general meeting Thursday that had placed Japans third-largest bank in the spotlight for its financing of coal power projects.The resolution, which its sponsor said was the first of its kind in Japan, would have required Mizuho to disclose climate risks and publish a plan to ensure its investments are aligned with the Paris Agreement. The Tokyo-based lender said in a statement earlier this month it already discloses goals based on the climate pact and that the proposal was inappropriate.The initiative garnered 34.5 of votes cast in advance of the meeting, short of the two-thirds required to pass. A final tally has yet to be announced. Several high-profile global investors supported the motion, including Nordea Asset Management, a unit of Nordea Bank Abp with 235 billion euros 265 billion in assets under management, and Norwegian investment giants Storebrand ASA and Kommunal Landspensjonskasse.The vote sends a strong signal to Mizuho: exit all coal finance immediately, MP Pension Chief Investment Officer Anders Schelde said in an emailed statement. Small steps away from coal are clearly not good enough as were deep in a climate crisis and these are indeed toxic investments.Japanese banks, among the worlds biggest lenders to coal power developers, have faced criticism for continuing the practice as global rivals withdraw in a bid to combat climate change. Lenders including Mizuho are financing the construction of plants in Southeast Asia that could lock in coal use for decades, while climate scientists advocate more immediate action to halt usage of the fuel.Read how Japan lenders are among those still financing coalMizuhos coal lending puts the company at great risk of exposure to businesses that face devaluation in a transition to decarbonized economy, according to the resolution from the anti-coal activist group Kiko Network.Kiko Network said it filed the resolution in March because at the time it felt Mizuho had the weakest climate policy among Japans megabanks, which include Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. Mizuho strengthened its policy in April and Kiko says it now believes it is the strongest among its domestic peers, while still lagging behind those of global rivals.Mizuho said in April that it plans to halve its 300 billion yen 2.8 billion in outstanding coal energy project finance by the year starting April 2030 and bring it to zero by 2050. It also aims to stop providing new loans for coal-fired power plants from this month.For investors, the concern is that if global regulations on greenhouse gas emissions get stricter, it could force such plants to close before they pay off their debt.Institutional Shareholder Services Inc., a proxy advisory firm, recommended support for the climate initiative because it would place market discipline over management for continued improvement of climate-related disclosure practices and allow investors to better evaluate the banks risk profile. Glass, Lewis Co., which also supported the measure, said it could help mitigate potential reputational risks on account of the companys significant coal financing.Updates with investor comment in fourth paragraph.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.2020 Bloomberg L.P. 