Investors help push TotalEnergies on stronger climate resolution

A climate resolution backed by 17 institutional investors was supported by 30% of shareholders at the TotalEnergies annual meeting Friday.

A similar resolution in 2020 received 17% support from shareholders.

The resolution from Dutch climate activist group Follow This calls on the French oil company to set targets aligned with the Paris Agreement for Scope 3 indirect emissions related to its energy products.

Follow This spokesman Tarek Bouhouch in a news release credited the investors for the increased support. "We thank the 17 co-filers of the climate resolution and the investors who followed their leadership. These investors voted as true stewards of the global economy," Mr. Bouhouch said. "Clients of institutional investors, such as pension funds, will be watching how their asset managers voted to gauge their competence as long-term value stewards."

Mr. Bouhouch also credited the 17 co-filers for contributing to proxy adviser Institutional Shareholder Services recommending that shareholders support the Follow This climate resolution.

The 17 institutional investors from France, Belgium, the Netherlands, the U.K. and the U.S. collectively manage €1.1 trillion ($1.19 trillion) in assets, according to Follow This. The consortium includes PGGM, the in-house investment manager of Pensioenfonds Zorg en Welzijn, Zeist, Netherlands, with €217.6 billion in assets; MN; Achmea Investment Management; Edmond de Rothschild Asset Management; La Banque Postale Asset Management and Tocqueville Finance; and Man Group.

TotalEnergies said in a news release that the majority of its shareholders supported a progress report on its climate ambitions, although the vote results will not be made public until May 31.

Addressing the 30% support for the Follow This resolution, the company said its board of directors "will continue its dialogue with all shareholders concerning the company's climate strategy."

A document from an April 28 board meeting to review the Follow This resolution said it "does not provide a credible response to the challenges of climate change and would be contrary to the interests of the Company, its shareholders and its customers."

For companies like it, an absolute reduction target for Scope 3 without reducing the corresponding Scope 1 of energy users "is in reality not relevant in reducing global GHG emissions," it said, and adopting the resolution would lead to holding the company liable for these emissions.

"TotalEnergies has a consistent and effective strategy to be a major player in the energy transition," the document said.