Investors trigger green decisions in one day at ExxonMobil and Chevron

Shareholder motions filed by environmentally-conscious investors were passed at the U.S. fossil fuel companies ExxonMobil and Chevron. Disgruntled investors rejected the responses of the U.S. oil giants regarding steps taken to tackle climate change. Instead, they responded by directing Chevron to deepen emissions cuts and installing activist board members at ExxonMobil.

A resolution calling on Chevron, to reduce Scope 3 emissions including energy products, was approved by the investors. The company will need to prove its climate targets are aligned with the Paris Agreement and to cover emissions in absolute terms, as per the resolution.

On the other hand, two board nominees at ExxonMobil, from activist group Engine No. 1 won enough votes to secure board seats. The firm’s shareholders supported a proposal that requires a report about the company's lobbying activities on climate change.

Edie newsroom reported the climate action group’s statement. They said that the board change was “much-needed” for energy transition and “significant shareholder pressure”.

Until January 2021, Exxon published and set targets for Scope 1 (direct) and Scope 2 (power-related) emissions in its environmental disclosures. These emissions have fallen steadily but with pressure from climate action groups and shareholders, disclosure of Scope 3 (indirect) emissions is the next thing on the table.

These two decisions at the US oil giants' annual meetings provide hope that investors are keen on addressing climate change.

Picture Credits: Financial Times