A majority of Phillips 66 shareholders approved a resolution Wednesday calling for the company to set concrete emission-reduction targets, according to preliminary results reported by climate activist investor group Follow This.
Phillips 66 did not disclose the votes but confirmed the majority needed to approve the resolution filed by Follow This. A similar Follow This resolution for ConocoPhillips was approved Tuesday by 58% of shareholders.
The Phillips 66 vote "raises the expectations for the upcoming votes at Shell and Chevron," said Mark van Baal of Follow This. "Big Oil can make or break the Paris Accord. Investors in oil companies are saying now: we want you to act by decreasing emissions."
A Follow This climate resolution at BP for the company to map out a more aggressive plan for reducing emissions in line with the goals of the Paris Agreement fell short of the majority needed Wednesday. It garnered 20.7% support — a jump from 8.4% in 2019 and "a clear signal to the board of BP," said Mr. van Baal in a statement. He thanked the institutional investors that voted for the BP climate resolution, including a majority of the 10 largest Dutch investors, whom he called "the change agents of oil and gas companies."
The $459 billion California Public Employees' Retirement System, Sacramento, and the global investor engagement initiative on climate change, Climate Action 100+, have been criticized for not supporting the BP shareholder proposal.
"We appreciate that NGOs are rightly calling for progress," Anne Simpson, Climate Action 100+ Steering Committee member, and managing investment director for board governance and sustainability at CalPERS, said in an emailed statement. She noted that progress is the focus of the fund's engagement with companies directly and through Climate Action 100+.
"However, in this case the proposal duplicates a prior resolution, which was already passed," Ms Simpson said.
"A further concern for us is the binding nature of the proposal. The issues are complex and moving fast," she said. "If companies are not moving at the pace and scale needed, the next step for investors is voting on board members, as we are at Exxon, where we're supporting four new directors to oversee the company's transition to net zero."