"If Anglicans are to be relevant to the peace process they should choose to engage rather than boycott one side," the embassy said in a statement reported by the BBC.
The Anglican consultative council approved the disinvestment resolution unanimously Friday. The measure had the backing of the Archbishop of Canterbury, Rowan Williams, and echoes one adopted by the Episcopal Church in the United States.
The previous archbishop and England's chief rabbi, Jonathan Sacks, lobbied against the proposal.
The resolution is not binding on any of the national churches that make up the Anglican communion.
The BBC reports that the Church of England owns millions of dollars worth of stock in Caterpillar, which makes bulldozers used to level Palestinian houses.
Notable deaths of 2014 [PHOTOS]