Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Shell and BP in firing line as institutions join call for big oil to cut emissions 

Published 20/12/2022, 08:36
© Reuters.  Shell and BP in firing line as institutions join call for big oil to cut emissions 
BP
-
BP
-
BPEz
-
BP_pb
-
BP_p
-

Proactive Investors - Shell PLC and BP PLC have again been called out to implement new emissions targets faster after investors managing €1.3trn of their shares joined activist group Follow This in criticising a lack of progress.

Six fund managers have joined with the Netherlands-based lobbyist to file motions at the AGMs of BP , Shell and also US peers Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX).

Four of the fund managers have been prepared to identify themselves with two as yet unnamed.

The four are Paris-based Edmond de Rothschild Asset Management, Belgiums Degroof Petercam, Dutch firm Achmea and US group Arjuna Capital.

The oil giants are being urged to align their emission reduction strategy with the 2015 Paris climate agreement target.

Follow This founder Mark van Baal said the backing from the fund managers was “a new and significant commitment from some of the world’s most important investors.”

Follow This added the six major stakeholders are demanding the firms significantly cut down on scope three emissions by 2030.

These are emissions which are indirectly produced, including from fuel sold to customers such as car drivers.

It added that it is focusing on Scope 3 after pressure from the oil companies led to major investors such as Blackrock (NYSE:BLK) changing their minds their last year.

“Together with responsible investors, we have to counter Big Oil’s new fallacies. First, that the current energy crisis should eclipse the climate crisis, an argument that – helped by the windfall profits – spurred BlackRock to backtrack on Scope 3 in 2022. Second, that the problem is on the demand side,” Follow This said.

“We hope that investors will finally realize that Big Oil will hang on to fossil fuels as long as possible, unless they vote in a different direction,” it added.

Shell has accused activist investors of taking a ‘formulaic approach’ when scrutinising their environmental, social and governance (ESG) policies.

A raft of FTSE100 bosses also accused some institutions of “grandstanding” over ESG policies and suggested calls for change were often too generalised and ignored individual circumstances.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.