ExxonMobil Corporation and Chevron Corporation had to bear the brunt after investors raised concerns regarding their lack of efforts to counter climate change. According to reliable sources, these investors have added climate activists to the board and directed the American oil giants to deepen emission cuts.
Two nominees for the board from activist group Engine No.1 namely Kaisa Hietala and Gregory Goff have been added to Exxon’s board. They are accompanied by Chief Executive Darren Woods and seven other indispensable directors who were re-elected, sources claimed.
Investors have also supported a climate activist’s proposal calling on Chevron to reduce scope 3 emissions which surrounds energy products.
Shareholders have backed a proposal that seeks a report on Exxon’s lobbying activities about climate change. For those unaware, Exxon had recently established a low carbon initiative to commercialize carbon capture technology. The oil giant had also announced two new positions for board members with prior experience in the energy industry and climate.
Critics have asked for stringent laws for extensive and cost-efficient execution of Exxon’s carbon capture plan. However, they believe that this plan is just a restructure of the already existing initiatives. ExxonMobil has been severely criticized during its annual meetings over its lack of adequate efforts for climate change over decades with shareholders pushing resolutions for stronger action.
The International Energy Agency (IEA), in its report has asked to dissolve all the proposed or sanctioned fossil fuel projects to attain a zero-carbon emission target by 2050.
In this context, Exxon’s CEO Darren Woods was quoted saying that although IEA’s report has added crucial insights, reducing the carbon footprint is a tedious problem that will require the assistance of the latest technology and favorable government policies.
Both ExxonMobil and Chevron intend to continue investing in oil and gas exploration with new environmental norms in the coming months
Shares of ExxonMobil reportedly rose 1.2 percent to close at USD 58.94, while Chevron added 0.2 percent at USD 104.12.
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