This morning, TotalEnergies published record-high first quarter financial results. Ahead of its Annual General Meeting on May 25th 2022, the company also announced its decision to reject a shareholder resolution asking TotalEnergies to set Paris-aligned climate targets. This decision clearly demonstrates that the French major does not take neither the climate crisis nor shareholder engagement seriously. Reclaim Finance calls on all TotalEnergies’ shareholders to vote against the company’s incomplete and unambitious climate plan at its upcoming AGM.
One of the few oil & gas major to reject shareholder resolutions on climate…
After the withdrawal of a first resolution that asked TotalEnergies for a credible and comprehensive “Say on Climate” (1), the rejection of a second resolution by the French major means that no shareholder resolution on climate will be discussed at TotalEnergies’ AGM on May 25th 2022.
This contrasts unfavourably with most of TotalEnergies’ peers. Indeed, at least seven oil majors will have shareholder climate resolutions tabled at their AGMs this year: BP, Shell, Equinor, Chevron, Exxon, Philipps66 and ConocoPhilipps.
… based on fallacious arguments
By partly motivating its decision to reject the resolution by “constructive exchanges with some shareholders” and its “new transparency-related commitments” (2), TotalEnergies deliberately mixes up different topics. Indeed, the resolution rejected today focuses on the level of ambition of the major’s climate targets. Conversely, TotalEnergies’ new commitments – which were not made spontaneously by the company but obtained through the filing of another shareholder resolution – relate to the structure and completeness of its climate plan. The two issues are therefore very different and TotalEnergies cannot use its – incomplete – progress on transparency to reject a resolution that relates to the level of ambition of its climate plan.
The company also argues that the vote already scheduled on its climate plan is a reason to reject the shareholder resolution. However, the “climate” plan proposed by TotalEnergies is clearly incompatible with the Paris Agreement, and even more so with the objective of limiting global warming to 1.5°C. Therefore, it makes the resolution rejected today all the more necessary and relevant.
The company’s final argument (that the resolution would infringe on the Board’s prerogatives) points to the failure of French public authorities to promote shareholder rights. Regulatory bodies (AMF and ACPR) having called for a “legal clarification” on this issue: it is urgent to amend the law to definitively confirm the possibility for shareholders to file climate resolutions, and to facilitate such filings.
TotalEnergies’ decision to reject this climate resolution illustrates both the company’s feverishness on climate issues and its hypocritical attitude towards shareholder engagement. Faced with the obstructive and unconstructive attitude of TotalEnergies, climate-conscious investors will have no ohter choice but to vote against the company’s fake climate plan at its AGM on May 25th.