Schroders Pushes Oil & Gas Giants ExxonMobil, Chevron, and Shell to Remain Consistent with Paris Agreement

Published on: 25 May 2022

To support a faster transition to net-zero, Schroders, the biggest asset management company, stated it is pre-declaring its vote intentions for three oil and gas majors, Chevron, ExxonMobil, and Shell.

The Paris Agreement, which went into effect in November 2016, aims to keep global warming far below 2 degrees Celsius, with a goal of 1.5 degrees Celsius, relative to pre-industrial levels.

Similar resolutions have recently been endorsed by Schroders at BP, ConocoPhillips, Occidental Petroleum, and Phillips 66.

This comes on the heels of the release of Schroders' Engagement Blueprint, which established new standards for active ownership and engagement goals, as well as Schroders' recent promise to support workers' and digital rights ahead of tech companies' annual general meetings.

Tim Goodman, Head of Corporate Governance at Schroders, commented:

“For Chevron, ConocoPhillips, ExxonMobil, and Phillips 66 our decision to vote for these shareholder resolutions reflects our aspiration for these companies to show more ambition and transparency in their transition to net zero.

“While most of these companies now have the ambition to achieve net-zero greenhouse gas emissions by 2050 or sooner, their ambition is limited to their operational (Scope 1 and 2) emissions only. These companies are lagging behind their peers in setting net-zero targets that take into account the carbon emissions of the oil and gas that they sell.”

Carol Storey, Active Ownership Manager, Schroders, commented:

“For BP, Shell and Occidental Petroleum, our decision to vote for these shareholder resolutions is a signal of our desire for these companies to continue to demonstrate their focus on reaching net-zero."

“All three have the ambition to achieve net-zero greenhouse gas emissions by 2050 or sooner across scope 1, 2 and 3 emissions relating to operations and the use of energy products and are making progress in setting interim climate targets. We also support the climate reports BP and Shell’s management have presented to shareholders, reflecting the progress they have made in strengthening and broadening their climate targets and developing their decarbonisation strategies.”

Schroders has a long history of active ownership and involvement, having tracked and monitored engagements for over two decades. The company has influenced considerable change throughout that period and assisted the firms in which it invested in improving their environmental, social, and governance performance.

Source: Schroders