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.