Climate activist shareholder group Follow This said on Thursday a lack of investor appetite has forced it to suspend its nearly decade-long campaign seeking stronger commitments from major oil and gas producers to emission cuts.
The Dutch group started filing climate resolutions at shareholder meetings in 2016, reaching shareholder support in subsequent years of 80% at Phillips 66, 60% at Chevron, around a third at Exxon and Shell and a fifth at BP. However, a surge in oil and gas prices triggered by Russia’s invasion of Ukraine and lower-than-expected returns from investments in renewable energy have shifted shareholders’ focus back to more profitable oil and gas. BP, Shell and Equinor, among other companies, have rolled back their energy transition ambitions in recent months.
“Institutional investors are reluctant to use their voting power,” Follow This founder Mark van Baal said. Exxon last year sued Follow This and Arjuna Capital after they filed a climate-related resolution. A judge ultimately dismissed the suit, but only after the defendants withdrew their resolution and promised not to resubmit a similar one or help others do so.
“Follow This talks with supportive investors about reassessing strategies and addressing these barriers, exploring what is preventing other investors… from casting their votes, despite their stated commitments,” van Baal said.
(Reporting by Shadia Nasralla Editing by Tomasz Janowski)