Occidental Petroleum Corp. shareholders on May 6 voted against a proposal by activist investor group Follow This to extend the company's current carbon emissions reduction targets.
More than 80% of shareholders backed the board's recommendation to keep current commitments set by the U.S. oil and chemical producer, during the company's annual meeting on Friday.
Oil majors have been facing pressure from shareholders to cut carbon emissions to meet Paris Agreement climate goals that aim to limit global warming to below 2 degrees Celsius. Friday's vote signals investors are not willing to commit to proposals they believe could hurt business.
Chief Executive Vicki Hollub said the two sides have a "fundamental disagreement on what it means to be Paris aligned."
Follow This, a Dutch climate activist, wanted Occidental to disclose quantitative short-, medium- and long-term greenhouse gas emissions reduction targets consistent with the Paris Agreement.
The group's founder, Mark van Baal, said oil companies need to cut emissions by 40% and that Occidental's existing commitments do not guarantee that.
Occidental's board told investors it believes the company is already committed to Paris goals, and to reaching net zero emissions by 2050, with 14 metrics aimed at curbing emissions from its operations and products.
Occidental is betting on carbon sequestration and direct air capture technologies to offset emissions from its oil, gas and chemical operations. It also has set targets to mitigate emissions from its products.
Recommended Reading
Inside Continental Resources’ $250 Million Foray into Carbon Capture
2022-03-03 - The Williston Basin has the ideal properties for long-term carbon storage, Continental Resources Founder Harold Hamm told Hart Energy at an event in Fargo, N.D. announcing the shale producer’s first carbon capture project.
Aker Solutions Appoints Trine Svalestad as SVP Sustainability
2022-03-22 - Aker Solutions forecasts a significant increase in its activities as a key supplier of new energy facilities.
Legal Side of ESG: Top Three Issues to Watch in 2022
2022-03-23 - The SEC’s proposed rules and ESG-related litigation risk are among the key ESG themes impacting the regulatory and legal space of the energy sector this year.
TotalEnergies to Stop Buying Oil, Fuel Products from Russia
2022-03-22 - French oil major TotalEnergies came under strong criticism after it condemned what it called Moscow’s military aggression in Ukraine, but stopped short of joining rivals Shell and BP in planning to exit positions in resource-rich Russia.
Saudi Arabia Hikes Oil Investments as it Profits from Price Surge
2022-03-21 - Asked if Aramco would pump more oil to fill any gaps in the market left by the war in Ukraine, CEO Amin Nasser said it would produce according to guidelines from the Saudi energy ministry.