In November and December Follow This filed Climate Targets Resolutions for the 2020 AGMs of Shell, BP, Equinor, ExxonMobil, and Chevron.
The wording of the resolution is “Shareholders support the company to set Paris-aligned targets for all emissions (Scope 1, 2, and 3),” same as in 2017, 2018, and 2019.
The table summarizes why we filed supportive shareholder resolutions again. Oil and gas companies need investors’ support to set Paris-aligned targets and to invest accordingly. The resolutions traditionally and sincerely end with “You have our support.”
The supporting statements include a clarification of emissions levels that are compatible with the Paris Climate Agreement. According to viable IPPC scenarios, absolute emissions should decrease by 70% (2°C) to 100% (1.5°C) by 2050.
Therefore Shell’s and Equinor’s ambitions are not Paris-aligned yet.
Voting drives change
The U-turns on responsibility for Scope 3 (*) of Shell (in November 2017) and of Equinor (last Thursday) have shown that a minority of visionary investors – say 6-12% of voters – can drive change.
We therefore thank all investors that voted for our climate resolutions in previous years and trust more investors will follow this year.
Additional remarks and attachments
This Wednesday afternoon (12 February) BP’s new CEO Bernard Looney will set out his ambitions for BP.
We hope that these targets are so closely aligned with the Paris Climate Agreement that BP’s board will advise shareholders to support BP by voting for the climate targets resolution this year.
Because BP will need an investors’ mandate to execute Bernard Looney’s ambitions.
U-turn Shell and Equinor thanks to responsible investors
(*) Both Shell and Equinor advised shareholders to vote against the Follow This resolution with the argument that they could not take responsibility for product emissions (Scope 3). Both took responsibility for Scope 3 after a minority of responsible shareholders voted for the resolution.
Withdrawal Shell resolution in 2019
Follow This withdrew its resolution for Shell in 2019 because the six Dutch Investors that had voted for the Follow This climate resolutions in previous years (the “Supporting Six”) advised us to give Shell one year of breathing room to align its targets with the Paris Climate Agreement. Please find their public statement ‘investor’s expectations of oil and gas companies’ attached attached. We hope more investors will support this statement in 2020.
ExxonMobil and Chevron have sent so-called no-action letters to the United States Securities and Exchange Commission (SEC) to block the resolutions. We are currently writing rebuttals to these letters to the SEC.