Four of the major oil and gas corporations in the world have been urged by a group of investors to establish broad climate goals for 2030, putting pressure on the industry after a year in which governments turned their attention to energy security.
A group under the auspices of “Follow This” said it had co-filed the resolutions with six major institutional investors managing $1.3 trillion in assets ahead of the annual general meetings of BP (BP.L), Chevron (CVX.N), Exxon Mobil (XOM.N) and Shell (SHEL.L) next year.
The resolutions demand that the firms make goals to cut their greenhouse gas emissions by 2030, particularly those from fuel sold to consumers (often referred to as Scope 3 emissions), which are responsible for the vast majority of the sector’s pollution.
BP, Shell, and Chevron have all established 2030 goals for reducing greenhouse gas emissions, including Scope 3, but Follow This said they are not in line with the UN’s goals to keep global warming to 1.5 degrees Celsius over pre-industrial levels.
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Exxon, which doesn’t have Scope 3 targets, said that the methodology used to determine them is incorrect. According to the company, the methodology has the unintended effect of shifting responsibility for carbon footprint on others, as when businesses are penalized for increasing natural gas production in favour of coal, a more polluting fuel.
Chevron stated that it cherishes shareholder feedback and will consider any proposals. Shell was of the opinion that its goals were in line with the U.N. climate goals.
“Follow This has consistently proposed shareholder resolutions that are simplistic, unrealistic and against the best interests of Shell. We remain committed to constructive engagement with our investors,” a Shell spokesperson said.
Edmond de Rothschild Asset Management, Degroof Petercam Asset Management, and Achmea Asset Management are among the investors who jointly filed the resolutions. Follow This did not provide the names of the other backers.
Story was adapted from Reuters.
