In a letter to ConocoPhillips, shareholders said:
“In the coming decades, the world will reduce greenhouse gas (GHG) emissions to curb climate change. Companies that fail to reduce overall emissions will incur substantial financial risks, especially fossil fuel companies.
“Shareholders request the company to address the risks and opportunities presented by the global transition towards a lower emissions energy system by setting emission reduction targets covering the GHG emissions of the company’s operations, as well as their energy products (Scope 1, 2, and 3).”
The letter also says: “The global political pledge to curb climate change, the resulting future regulations for the fossil fuel industry to reduce their overall emissions, and the decreasing costs of renewable energy add to the risk that capital expenditures in fossil fuel projects will become stranded assets. Furthermore, fossil fuel companies are increasingly sued for their role in the climate crisis: not only for their Scope 1 and 2 emissions but also for their Scope 3 emissions.”
In contrast to previous rulings, the Securities and Exchange Commission (SEC), the US independent agency protecting investors and the national banking system, has now decided that ConocoPhillips must include a climate proposal at its forthcoming annual general meeting (AGM) season.
In Europe, similar proposals from shareholders have compelled oil majors to announce climate ambitions and report Scope 3 emissions, caused by customers burning their products. The SEC decision has ensured that a climate resolution from the Dutch shareholder group will come to a vote in the US…
