London Dec 19 (BNA): A group of investors has moved forward with resolutions urging four of the world’s largest oil and gas companies to set broad climate targets for 2030, putting pressure back on the sector after a year that saw governments shift their focus to energy. Safety.
Activist group Follow This said it co-presented resolutions with six major institutional investors managing $1.3 trillion in assets ahead of the annual general meetings of BP, Chevron, Exxon Mobil and Shell next year, Reuters reports.
In the resolutions, the investors called on the companies to set targets for reducing greenhouse gas emissions by 2030, including those from fuel sold to customers, known as Scope 3 emissions, which account for the vast majority of the sector’s pollution.
In recent years, investors have stepped up pressure on the oil and gas sector to help tackle climate change, and climate-related decisions to pursue this have gained increasing support among shareholders.
However, efforts in the past year have largely faltered as investors shift their focus more to higher energy prices and energy security in the wake of Russia’s invasion of Ukraine.
BP, Shell and Chevron have all set some greenhouse emissions reduction targets for 2030 that include Scope 3, though Follow This said it falls short of the UN’s ambitions to limit global warming to 1.5°C above pre-levels. Industry.
Exxon, which does not have Scope 3 targets, said the way they are calculated is flawed. The methodology has the unintended consequence of passing on a carbon footprint to someone else, she says — for example, when companies are penalized for producing more natural gas that will replace coal, a more polluting fuel.
Chevron said it values input from shareholders and will evaluate any offer received.
BP did not respond to requests for comment.
Shell said it believed its targets were in line with the United Nations climate goals.
A Shell spokesperson said: “Follow This has consistently suggested shareholder decisions that are simplistic, unrealistic and contrary to Shell’s interests. We remain committed to engaging constructively with our investors.”
The group of investors who participated in filing the resolutions included Edmond de Rothschild Asset Management, Degrove Petercam Asset Management and Acmea Asset Management. He followed this and did not provide the names of other supporters.
“We recognize that Shell has made a huge improvement in its climate targets. However, it still lacks the absolute (emissions reduction) 2030 target,” Jean-Philippe Desmartin, head of responsible investment at Edmond de Rothschild Asset Management, told Reuters.
Shell, BP and European counterparts including TotalEnergies and Eni have set strategies and targets to reduce emissions to net zero by 2050 by reducing oil and gas production and developing low carbon and renewable energy businesses.
“The focus on Scope 3 by 2030 leaves major oil companies no wiggle room for smokescreens around ‘net zero emissions by 2050,’” said Mark Van Pal, the company’s founder.
In the United States, 2022 saw a wave of efforts led by Republican politicians and right-leaning investors to focus CEOs’ attention away from environmental, social, or governance (ESG) topics.
Activist investor Strive Asset Management, for example, is seeking a shareholder vote at Chevron’s spring meeting to reverse the Scope 3 emissions reduction mandate.
Exxon and Chevron have in the past successfully blocked attempts to bring climate resolutions to the Securities and Exchange Commission.