Today, Chevron Corp. shareholders voted in favor of a proposal to cut emissions generated by the company’s product use. Indeed, this move comes as Chevron is currently underscoring the growing push coming from investors to reduce the carbon footprint oil and gas producers generate.
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Thus, shareholders voted 61% in favor of the proposal to cut so-called “Scope 3” emissions. In fact, Chevron announced this move as a preliminary count at its annual general meeting.
Chevron pledging but not setting long-term targets
Worth noting, the proposal does not require Chevron to already set a target of how much it needs to cut emissions or by when. However, as Reuters notes, the overwhelming support for the initiative shows growing investor pressure with companies. Particularly, since many of them still believe large oil and gas firms are not doing enough to tackle climate change.
In fact, Exxon Mobil Corp lost today two director seats to Engine No. 1, a tiny activist hedge fund. Similarly, a Dutch court on also ordered European oil major Shell to significantly deepen planned greenhouse gas emission cuts.
Accordingly, this move sets a landmark ruling that could pave the way for legal action against energy companies around the world.
Nevertheless, several oil and gas companies have long argued that they have little control over how their products are used.
An Investment Decision
With rising investor pressure, those companies are now forced to find new ways to cut emissions and fall in line with global climate change pledges.
Thus, Chevron shareholders approved the slate of directors and executive pay by 96% and 94% votes, respectively.
Additionally, one proposal, which called on Chevron to prepare a report on the impact its business would have from the net zero 2050 scenario, got a 48% votes in favor of it.
Similarly, another proposal demanding the company report more information on its lobbying activities also received about 48% votes.
In contrast to many European oil companies, Chevron has not set long-term targets to achieve net zero emissions. However, as a first step, the company has pledged to limit carbon emissions that contribute to climate change.