Global investment manager Schroders announced that it will support shareholder resolutions at energy majors ExxonMobil, Shell and Chevron calling for ambitious climate action and transparency. The announcement follows similar action taken by Schroders on resolutions at BP, ConocoPhillips, Occidental Petroleum and Phillips 66.
Each of the resolutions request that the companies set Paris-aligned targets to reduce Scopes 1, 2 and 3 greenhouse gas (GHG) emissions encompassing the companies’ operations and energy products.
The announcement follows the release last month by Schroders of its Engagement Blueprint, outlining its vision of active ownership and its approach to engage with portfolio companies on a series of key sustainability issues. In the blueprint, Schroders states that active ownership is a key element of the value it brings to clients, with engagement focused on encouraging management teams to adapt to evolving environmentalEnvironmental criteria consider how a company performs as a steward of nature. and socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. forces, and holding them accountable for doing so.
Schroders added that while it is supporting each of the resolutions, it noted the different levels of ambition signaled by the companies, in particular urging more ambitious climate plans from those that have yet to set Scope 3 targets.
For Chevron, ConocoPhillips, ExxonMobil and Phillips 66, Tim Goodman, Head of Corporate GovernanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. at Schroders, said:
“While most of these companies now have an ambition to achieve net zero greenhouse gas emissions by 2050 or sooner, their ambition is limited to their operational (Scope 1 and 2) emissions only. These companies are lagging behind peers in setting net zero targets that take into account the carbon emissions of the oil and gas that they sell.”
Regarding BP, Shell and Occidental, Carol Storey, Active Ownership Manager at Schroders, said that the firm’s “decision to vote for these shareholder resolutions is a signal of our desire for these companies to continue to demonstrate their focus on reaching net zero.”
Storey added”
“All three have an ambition to achieve net zero greenhouse gas emissions by 2050 or sooner across Scope 1, 2 and 3 emissions relating to operations and the use of energy products and are making progress in setting interim climate targets. We also support the climate reports BP and Shell’s management have presented to shareholders, reflecting the progress they have made in strengthening and broadening their climate targets and developing their decarbonisation strategies.”
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