Big Oil braces for shareholder revolt in proxy voting season
[ad_1]
Just Stop Oil, an environmental group in London blocked a BP petrol station on 28 April 2022. The group of activists is asking for the U.K. to end new fossil fuel production licensing.
Kristian Buus | In Pictures | Getty Images
LONDON — Some of the world’s largest corporate emitters face the prospect of a shareholder rebellion this month, with climate-related votes poised to spike throughout the proxy season.
In the next few weeks, oil and gas companies on both sides will hold their annual general meeting. Along with existing climate strategies, investors can vote on a variety of resolutions aimed at reducing emissions.
Norway has the highest number of citizens in Europe. EquinorBritain’s BP will hold their respective AGMs on Wednesday and Thursday. U.K.-based ShellFrance will host its annual shareholder meeting, May 24, and the United States’s on May 25. TotalEnergiesAGM to be held May 25.
Stateside, ChevronAnd ExxonMobilTheir respective AGMs will be held on May 25,
In the midst of increasing pressure from Big Oil to establish short-term and medium-term goals in accordance with the landmark, Big Oil will be launching proxy season. Paris Agreement. It is generally agreed that the 2015 agreement was crucial in avoiding an irreversible global climate crisis.
Presently, not a single oil and gas majorThis aligns with Paris Agreement goals of limiting global warming to 1.5 degree Celsius above preindustrial levels.
Engagement is their only way to change. They are only going to change if you are crystal clear to them — and the only way to do that is by voting.
Mark van Baal
Follow This founder
Follow This, an activist investor in the Netherlands and campaign group that has stakes at several Big Oil companies is scheduled to propose a variety of climate resolutions. The group is asking investors to use their agency to pressure energy companies to join the Paris Agreement.
“The message is that they will not change by their own initiative, which I have tried to convey for many years. Engagement is what they won’t accept. They are only going to change if you are crystal clear to them — and the only way to do that is by voting,” Mark van Baal, founder of Follow This, told CNBC via video call.
Van Baal stated, “If you want to see the Paris climate accord be implemented you must vote for these resolutions.” These resolutions aren’t asking for anything extreme. That is not an unreasonable request.
‘Unclear, generic, disruptive’
ExxonMobil, Chevron, and Shell were among the oil companies that voted in favor of climate-related resolutions. Campaign groups also hoped for better results this month. Partly, these hopes rest on the liability risk for oil and natural gas executives and institutional investors.
Paulussen Advocaten has stated that Shell’s board members “pose a risk of future personal liability” if they do not agree with the Paris agreement. won a landmark case against the oil giantIn May of last year. Shell appealed.
Police officers take away a Climate activist of the protest group Extinction Rebellion after she glued her hands to Shell’s reception desk. XR held a series protests against the growing fossil fuel economy.
Tolga Akmen | Afp | Getty Images
You can also find additional information at letterPaulussen Advocaten advised investors that on April 25, the lawyers of Paulussen Advocaten explained: “Current and likely legal developments regarding climate change liability risks to directors and institutional Investors of Oil and Gas Majors, are additional reasons to seize this chance [to vote for climate resolutions].”
Nonetheless, Equinor and BP have recommended that investors vote “Follow This” this month.
BP saidThe motion of the campaign group was unclear, general, disruptive, and could cause confusion about shareholder and board accountabilities. This motion is a threat to long-term value generation. Shell, however, is a company that has meanwhile describedThe resolution is “unrealistic.”
France’s TotalEnergies decided to not include the investor-led resolution on climate change at its AGM. It stated that the request was “unacceptable.”contravenes French legal rules.”
Chevron’s profit increased more than fourfold in the first quarter of 2022.
Justin Sullivan | Getty Images News | Getty Images
The Dutch government has announced that 9 out 10 of its largest investors are now declaring their support for climate solutions. Van Baal called this “really exceptional” while Institutional Shareholder Services, Glass Lewis and Glass Lewis have split their opinions.
ISS advised shareholders not to vote at BP but for the climate motions at Equinor (Occidental), ConocoPhillips and ConocoPhillips), Phillips 66 and Phillips 66. Glass Lewis is another oil shareholder who advised shareholders to vote against any climate resolutions except for Valero.
“We need majority”
Van Baal stated that he expects growth, and that he hopes for a majority as we need to make real change. He also said that “a lot” had been accomplished since the proxy season last year and that investors seemed “increasingly worried.”
The International Energy Agency, for instance, has warnedIf the world hopes to not exceed a vital global temperature threshold, there is no need for a new fossil fuels infrastructure. The Dutch Court has decided that Shell must cut its carbon emissions by 45 percent by 2030. publishedThere are three main reports about the growing climate crisis.
Following This in Shell’s case has seen the support for their climate resolution increase from just 2.7% last year to over 30% by 2021.
U.K. Corporate Governance Code stipulatesAny shareholder vote exceeding 20% will require the company’s return to investors for discussion.
The oil industry uses the current energy crisis to delay climate action. It’s not clear if investors will accept the narrative,” van Baal added, adding that voters would find it “terrible” to reject climate-related resolutions.
[ad_2]