Investors with $1.4 trillion of assets hit oil companies with climate resolutions

William Mathis, Bloomberg December 19, 2022

(Bloomberg) —Investors with combined assets of €1.3 trillion ($1.4 trillion) have demanded the world’s biggest oil companies take swifter action to cut greenhouse gas emissions.

Shareholder activist group Follow This filed resolutions with Shell Plc, BP Plc, Exxon Mobil Corp. and Chevron Corp., urging them to align their 2030 emissions targets with the Paris Agreement. It was joined by investors including Edmond de Rothschild Asset Management, Degroof Petercam Asset Management and Achmea Asset Management.

The resolutions are centered on limiting the majors’ Scope 3 emissions. Focusing on these would ensure the companies have “no wiggle room for smokescreens” as they pursue net-zero ambitions, Follow This founder Mark van Baal said in a statement.

Shell, BP

In response, Shell highlighted its existing target to cut the net carbon intensity of its energy products, including Scope 3, by 20% by 2030 and to halve absolute emissions of Scope 1 and Scope 2 by that year.

“Follow This has consistently proposed shareholder resolutions that are simplistic, unrealistic and against the best interests of Shell,” the UK company said in a statement. Shell’s targets are aligned with the Paris goal to limit the increase in global temperatures to 1.5C above pre-industrial levels, it said.

A spokesperson for BP declined to comment.

Chevron, Exxon

As regards Chevron, Follow This wants the U.S. company to expand its carbon-intensity target, saying it’s insufficient to keep temperature gains below 2C. The group is also calling on Exxon to set goals that align with the Paris accord.

“Chevron values input from its investors towards the goal of enhancing shareholder value,” the San Ramon, California-based company said. “Any shareholder proposal Chevron receives will be evaluated through its well-established governance process.”

Exxon declined to comment.

Connect with World Oil
Connect with World Oil, the upstream industry's most trusted source of forecast data, industry trends, and insights into operational and technological advances.