AGMs Highlight Investor Divides on Climate

Results of votes on emissions-focused shareholder initiatives at the annual general meetings (AGM) of Western majors highlighted a hardening dichotomy between investors in the US and Europe — as well as the increasing divide between some climate-focused investment funds and large asset managers who are taking a more hands-off approach to wielding their considerable clout. The trends play out amid changing public perceptions over the past year, as the Ukraine war gave renewed emphasis to energy security alongside protecting the climate. Activist Follow This filed proposals asking for stronger 2030 Scope 3 emissions targets from all the majors. Support for the measures was roughly flat with last year at BP (17%) and Shell (20%), despite moves by both to potentially produce more oil and gas this decade. Calls by some investors to vote against the BP and Shell boards due to that renewed upstream focus failed to resonate, with all candidates receiving more than 90% support. At Exxon, support for Scope 3 emissions reduction goals fell from 28% to 11%, while only 10% voted for these at Chevron, down from 33% last year. Only TotalEnergies saw shareholder support for tighter emissions standards increase, with more than 30% voting in favor this year against 17% when a similar proposal came up in 2020.