€1.3trn wealth fund to vote against ExxonMobil and Chevron over climate targets

The fund, which invests the Norwegian state's revenues from oil and gas production, said last year it would take a tougher line on companies that do not adopt credible climate plans.

Norway's €1.3 trillion wealth fund has said it would vote for resolutions urging oil majors Chevron and ExxonMobil to adopt tougher greenhouse gas reduction targets.

The fund would vote for shareholder proposals at both companies to adopt a medium-term Scope 3 greenhouse gas reduction target, against company management recommendations, it said on its website.

Scope 3 emissions include those from the use of a company's products by customers and oil companies' climate plans have different approaches on how to calculate and reduce them.

ExxonMobil does not set Scope 3 targets, while Chevron aims to reduce Scope 3 emissions intensity by 5% between 2016 and 2028.

The Norwegian fund, the world's single largest stock market investor, owns a 0.86% stake in Chevron and a 1.13% stake in ExxonMobil, as of the end of 2022, the latest fund data available.

CLIMATE & SUSTAINABILITY HUB

The fund, which invests the Norwegian state's revenues from oil and gas production, said last year it would take a tougher line on companies that do not adopt credible climate plans.

The fund also said it would vote for proposals to recalculate the greenhouse gas emissions baseline to exclude emissions from material divestitures, at the companies' respective annual shareholder meetings, both on May 31.

In addition, it would back an ExxonMobil shareholder proposal on commissioning a report on reduced plastics demand. The fund cited sustainability risks, against ExxonMobil's management's recommendation. 

Finally, the fund objected to Chevron chief executive Mike Wirth and ExxonMobil chief Darren Woods also chairing the companies' boards. The fund says that the same individual should not hold the posts of both chief executive and executive chair. 

Separately, the EU will not vote on phasing out so-called forever chemicals before 2025, an EU official said, as it moves to regulate the use of such chemicals, which are essential for industry but have long-term hazardous environmental impacts. 

Reuters