PRESS RELEASE | April 10 2025
Activist shareholder to focus on increasing investor pressure and upholding shareholder rights
For the first time since 2016, the activist shareholder group Follow This will not file climate resolutions for the Annual General Meetings (AGMs) of major oil and gas companies in 2025.
“Shareholder resolutions have been critical in compelling five oil majors to set emissions reduction targets, but most institutional investors are reluctant to use their voting power,” says Mark van Baal of Follow This. “It’s a strategic pause to get more investors on board and to discuss how to work together to uphold shareholder rights.”
Investor concerns amid political and legal challenges
Investors face a double challenge: the changing political landscape and attacks on shareholder democracy, particularly in the US.
US states are suing investors for considering climate risks and the SEC, the US financial regulator, is forcing investors into passivity. Exxon’s lawsuit against its own shareholders has further deterred investors. These challenges, combined with ongoing global trade tensions, have left investors uncertain about how to proceed with climate action.
Follow This speaks with investors about addressing these barriers, exploring what prevents investors, like BlackRock, LGIM, and NBIM, from casting their votes in favour of Paris-alignment despite their public climate commitments.
Mission remains unchanged
“This pause is part of our long-term mission to empower shareholders to compel high emitters to drive down GHG emissions. We remain committed to work with financial institutions as the best remedy for the climate crisis.”
“We have reached a steady 1 in 5 support for our resolutions, but the potential is much higher. However, filing resolutions without secured, broad investor backing could risk lower votes, potentially undermining progress. Investors need collective stamina and courage.”
Proven success of shareholder resolutions
Follow This is grateful for the leadership of supporting investors. Their votes have demonstrated the effectiveness of shareholder resolutions, pushing Shell, BP, Equinor, Phillips66, and Chevron to adopt emissions reduction targets. Votes increased from 2.7% in 2016 to majorities in the US in 2021, but votes have since plateaued at around 20%, resulting in oil majors backtracking on emissions reduction targets. Considering 99% of shareholders usually back management, one fifth of investors showing dissent should still be seen as a shareholder rebellion. “In 2021, we saw the potential for widespread support. To compel oil giants to make significant investments in clean energy, investor pressure must rise.”
Investors hold the key
Follow This is intensifying efforts to highlight the crucial role investors play in the climate crisis, stressing the financial risks of inaction. “We must raise awareness among the public about how the climate crisis impacts their financial futures, including pension funds, and demonstrate that investors—through shareholder votes—hold the key to meaningful change,” van Baal. “Furthermore, in the face of attacks like Exxon’s lawsuit against shareholders, we must all work together to uphold shareholder rights.”
As governments backtrack, investors must act
“Given the current political pro fossil fuel agenda, investors are the last resort in solving the climate crisis. Fortunately, their financial interests align with the need to tackle the climate crisis – failure to do so, will cost them billions. Institutional investors are stewards of the global economy and it will be difficult to make returns in an economy devastated by floods, draughts, wildfires, and extreme weather.”
The Power of the Vote
“Big Oil can make or break the Paris Climate Agreement. Their shareholders have only one formal power: the power of the vote. Together with supporting investors we must convince all responsible investors that they have an unambiguous financial imperative to act.”
