• Wed. Jun 7th, 2023

Norway’s sovereign wealth fund votes against Chevron and Exxonmobil


May 26, 2023


The world’s most significant investor in the stock market place desires ExxonMobil and Chevron to do much more to tackle the climate crisis.

Norway’s sovereign wealth fund, which holds $1.four trillion in total assets, announced Friday that it would back calls for the US oil providers to set much more aggressive emission reduction targets.

It mentioned it would help motions proposed by climate activist group Comply with This at the companies’ annual shareholder meetings subsequent Wednesday. ExxonMobil and Chevron

(CVX) have urged shareholders to reject them.

Comply with This has referred to as on the providers, along with European oil majors BP

(BP), Shell

(RDSA) and TotalEnergies

(TOT), to set much more ambitious targets for cutting their “scope 3” emissions by the finish of the decade. These emissions involve the greenhouse gases emitted when their solutions, such as gasoline, jet fuel and all-natural gas, are applied by clients.

The group says the revised targets would far better align the providers with the Paris climate agreement, which aims to limit international warming to 1.five degrees Celsius.

Mark van Baal, the founder of Comply with This, told CNN that the Norwegian fund had a “huge duty,” adding that it was surprising it hadn’t taken comparable action against European power firms at their shareholder meetings.

“Basically, they are saying to Shell, BP and Total: You do not have to lessen your emissions this decade. We anticipate them to appropriate this oversight subsequent year,” he mentioned.

The fund did not vote with activists against BP and Shell at their most current annual shareholder meetings, held final month and final week respectively.

Carine Smith Ihenacho, the fund’s chief corporate governance officer, told the Monetary Instances Friday that “both BP and Shell have superior scope three targets, they have superior transition plans.”

The fund also intended to vote with TotalEnergies against activists’ “scope 3” proposals at the French company’s annual shareholder meeting on Friday, it mentioned on its site.

French riot police held back a number of hundred climate protestors attempting to protect against TotalEnergies’ shareholders from attending the meeting in Paris, Reuters reported.

ExxonMobil, which has not set “scope 3” targets, mentioned in a letter to shareholders final month that such targets would encourage oil and gas providers to divest their assets, decreasing the provide of solutions “that society requirements.”

“Make no error, we are committed to decreasing greenhouse gas emissions,” the business mentioned.

Chevron aims to lessen its carbon emissions by five% more than the subsequent 5 years from a 2016 baseline, a target that covers “scope 3” emissions, but has urged shareholders to reject activist proposals.

The proposal would “require shrinking Chevron’s company,” the business mentioned in a letter to shareholders final month.

ExxonMobil and Chevron did not instantly respond to CNN’s request for comment on the voting intentions of Norway’s wealth fund, which is financed by the country’s vast oil and gas revenues. It owns shares in much more than 9,200 providers across 63 nations, with total equity holdings of $790 billion.

It holds a .86% stake in Chevron and a 1.13% stake in ExxonMobil, according to the most up-to-date fund information.

In its statement Friday, the fund also mentioned it was calling for Chevron CEO Mike Wirth and ExxonMobil CEO Darren Woods to resign as chairmen of the companies’ boards due to the fact it believed the leading roles must be performed by two diverse persons.

“The board must workout objective judgment on corporate affairs and be in a position to make choices independently of management,” the fund mentioned on its site.

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