Black Wednesday for three oil companies





It was a bad week for three big oil companies which culminated with news on Wednesday. In an article in The Guardian called
“‘Black Wednesday’ for big oil as courtrooms and boardrooms turn on industry” by Jillian Ambrose, ExxonMobil, Shell, and Chevron all received a message they need to do better in complying with actions to combat climate change.

A link to the article is below. Here are a few select paragraphs that give you the gist.

“The world’s patience with the fossil fuel industry is wearing thin. This was the stark message delivered to major international oil companies this week in an unprecedented day of reckoning for their role in the climate crisis.

In a stunning series of defeats for the oil industry, over the course of less than 24 hours, courtrooms and boardrooms turned on the executives at Shell, ExxonMobil and Chevron. Shell was ordered by a court in The Hague to go far further to reduce its climate emissions, while shareholder rebellions in the US imposed emissions targets at Chevron and a boardroom overhaul at Exxon.

‘There is no doubt that this week’s news has been not so much a shot across the bows as a direct hit to the hull of Big Oil,’ says Mark Lewis, the chief sustainability strategist at BNP Paribas Asset Management. ‘They will have to recognise now that no amount of patching up the hole will do; shareholders and society want the vessel completely overhauled.’

‘It was honestly a really emotional moment,’ says Jasper Teulings, the former general counsel for Greenpeace International. The ruling by the Dutch court ordering Shell to cut its emissions by 45% within the next 10 years ‘shifts the debate’ and could influence courtrooms across the globe, he told the Guardian.

‘It makes clear that the onus is on the industry to act, and that it can be held accountable to take very specific steps. It’s very relevant in legal terms because the ruling was very pure in its demand: it’s not about money, it’s about conduct. It was astutely reasonable,’ he says.”

This is a major step forward for those fighting to corral and reverse climate change. The shareholder actions are indicative of a movement that started making strides in 2017 requiring three energy companies to inform shareholders of their progress in addressing climate change.

Let’s hope management is listening. With the removal of a couple of board members, that is a clear sign they better.

https://www.theguardian.com/environment/2021/may/29/black-wednesday-for-big-oil-as-courtrooms-and-boardrooms-turn-on-industry

Corporate shareholders are acting on climate change

While fossil-fuel funded politicians avoid addressing climate change and strip away governance enabling industry polluters, shareholders have been picking up the baton. Last week, Reuters published an article called “Chevron ties executive pay to methane and flaring reduction,” which defines specific gas emissions targets.

The article penned by Jennifer Hiller notes that it is not just executives with incentive plan targets to reduce emissions. 45,000 employees also have incentive plan emission targets. In other words, their pay is tied to combatting climate change. The intermediate goal is to reduce gas emissions by 25% by 2023.

While Chevron is the first to tie incentives to reducing gas emissions, in the month before the current US President announced our pullout of the Paris Climate Change Accord, three energy companies -ExxonMobil, PP&L and Occidental Petroleum – announced shareholder votes requiring management to report on efforts to address climate change. The Exxon-Mobil vote is telling in that they face a shareholder lawsuit and one by the New York Attorney General, Barbara Underwood, for misrepresenting the impact of climate change on their business to investors.

Per The Guardian, the NYAG lawsuit notes Exxon’s “longstanding fraudulent scheme” to downplay the impact of climate change including under-representing the “proxy costs” of fossil-fuel extraction. This lawsuit follows a three-year investigation and uses Exxon’s own research and scientists’ speeches against them. Before they took a “global warming is a hoax” public relations stance around the turn of the century. Exxon was active in climate change research. Even Shell produced a video in the 1990s that was made for educational purposes about the dangers of climate change.

But, it does not stop there. Well before fossil-fuel company shareholders made these impositions on management, more forward thinking companies like Amazon, Facebook, Google, IKEA and Walmart have invested in renewable energy like wind and solar energy. IKEA and Walmart are using their expansive store rooftops to place solar panels, while the three technology companies have used all of the above renewable energy strategies to power their  data centers. In my state of NC, these companies have helped propel the state forward as a top four solar energy state.

Let me close with my favorite Super Bowl commercial of last week, Budweiser produced a commercial that noted their beer is now being produced by wind energy. Seeing the Clydesdales meander down a road surrounded by windmills was a beautiful sight. It showed this is not a future goal – it is here. And, just to show it is making a difference, over 1/3 of Iowa’s electricity is produced by wind energy and Germany just announced renewable energy now exceeds coal energy as the biggest electricity source and they plan to be 100% renewable energy powered by 2038, twenty years from now.