{"id":29636,"date":"2023-06-01T11:34:52","date_gmt":"2023-06-01T09:34:52","guid":{"rendered":"https:\/\/reclaimfinance.org\/site\/?p=29636"},"modified":"2023-06-01T11:34:52","modified_gmt":"2023-06-01T09:34:52","slug":"annual-general-meetings-how-well-did-they-go-for-the-climate","status":"publish","type":"post","link":"https:\/\/reclaimfinance.org\/site\/en\/2023\/06\/01\/annual-general-meetings-how-well-did-they-go-for-the-climate\/","title":{"rendered":"Annual General Meetings: how well did they go for the climate?"},"content":{"rendered":"

As AGM season<\/a><\/span> comes to an end, Reclaim Finance delivers its initial assessment. Our verdict is based exclusively on the annual general meetings of French financial actors. Spoiler alert: while the good news is rather meager, there are some bright spots. There have been some notable advancements that will give us, the optimists, enough energy to redouble our efforts in the battle for social and climate justice.<\/b><\/p>\n<\/div>

Reclaim Finance was involved in 6 AGMs: those of the 3 French banks \u2014 BNP Paribas<\/a><\/span> on May 16th, Cr\u00e9dit Agricole<\/a><\/span> on May 17th and Soci\u00e9t\u00e9 G\u00e9n\u00e9rale<\/a><\/span> on May 23rd \u2014 two (re)insurers \u2014 AXA<\/a><\/span> on April 27th and SCOR<\/a><\/span> on May 25th \u2014 and finally,\u00a0 the asset manager Amundi<\/a><\/span> on May 12th. Often, we were joined by representatives of communities fighting against projects developed by oil and gas majors, such as TotalEnergies and Shell.<\/p>\n

We did not expect a warm welcome, but the reception we received seemed particularly hostile. The intensity and number of insults during some of the AGMs were particularly shocking<\/a><\/span>. Nonetheless, we will highlight three significant facts.<\/p>\n<\/div>

Cr\u00e9dit Agricole acknowledges the need to stop developing new fossil fuel projects.<\/h2><\/span>
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Let’s start with some good news: the CEO of Cr\u00e9dit Agricole acknowledged the need to rely on the recommendations of scientists and the projections of the International Energy Agency to identify the imperatives to meet climate goals. Philippe Brassac recognized that limiting the temperature rise to 1.5\u00b0C implies no longer \u00ab\u00a0expanding fossil fuel capacities.\u00a0\u00bb<\/p>\n

It is a shame that it took him two years to acknowledge this (1), but better late than never. Let’s appreciate what this entails. If this is the imperative to be respected, Philippe Brassac will have to implement measures in the coming weeks that will enable him to meet it. He will need to go beyond his commitment to no longer directly finance new oil fields and include new gas production and transportation projects. Moreover, he must engage in tough discussions with his clients in the oil and gas sector, starting with TotalEnergies, of which Cr\u00e9dit Agricole is the primary financier.<\/p>\n<\/div>

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Cognitive dissonance within the Cr\u00e9dit Agricole group<\/h2><\/span>
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While the CEO of Cr\u00e9dit Agricole was affirming his commitment to the objective of limiting global warming to 1.5\u00b0C, its subsidiary Amundi indicated satisfaction with transition plans to limit warming \u00ab\u00a0well below 2\u00b0C,\u00a0\u00bb a goal that falls far short of the current political and scientific consensus. While the former emphasized the group’s responsibility to act for future generations, it seems that the asset manager\u2019s leadership is more aligned with the dividends of polluters. Hopefully, Philippe Brassac, newly appointed President of Amundi, will bring the IPCC’s 2018 report with him to their next meeting. Otherwise, we risk seeing the gap between Amundi and Cr\u00e9dit Agricole become as wide as the gap between 1.5\u00b0C and 2\u00b0C.<\/p>\n<\/div>

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BNP Paribas refuses to draw \u00ab\u00a0red lines\u00a0\u00bb and impede \u00ab\u00a0good business\u00a0\u00bb<\/h2><\/span>
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BNP Paribas\u2019 recent policy announcement clearly highlights the importance of the specific measures required to truly halt financing for oil and gas expansion. The bank has ceased direct financing for new oil and gas fields and has also cut a number of financing lines directed towards oil companies. However, no measures have been implemented to impede support directed towards oil and gas majors, which are among the largest developers of fossil fuels<\/a><\/span> globally and also count as key clients of BNP Paribas.<\/p>\n

When questioned about this significant loophole, Jean-Laurent Bonnaf\u00e9 was categorical: it is out of the question for France’s largest bank to set \u00ab\u00a0red lines\u00a0\u00bb – in other words, conditions – on its financing to oil majors. The \u00ab\u00a0good business\u00a0\u00bb that the bank engages in with Shell, BP, and others can accommodate \u00ab\u00a0conversations,\u00a0\u00bb but not strict restrictions, let alone any hindrance that would impede the goose that lays the golden eggs: the development of new oil and gas projects.<\/p>\n<\/div>

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Did BNP Paribas make an announcement or not?<\/h2><\/span>
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In response to a call from a Filipino priest to cease financing the development of LNG terminals, one of which is led by Shell in the Philippines, BNP Paribas stated that it couldn’t comment due to a lack of knowledge about the specific case. However, the bank did indicate that \u00ab\u00a0financing new gas projects in the Philippines is not part of [its] strategy.\u00a0\u00bb Therefore, it would be consistent to expect BNP Paribas not to provide project financing for such projects in the Philippines. However, there is no indication that BNP Paribas will restrict its support to Shell if the company does not abandon its project.<\/p>\n<\/div>

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SCOR makes the only announcement of the season, reminding AXA that gas is not a transition fuel<\/h2><\/span>
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The only significant announcement came from SCOR, which committed to no longer provide coverage for new gas fields. While the reinsurer did not go as far as addressing the development of new LNG terminals, the measure is still enough to cast a shadow over AXA, which is now the last major European (re)insurer to still support new gas fields. Despite their clear incompatibility with a credible 1.5\u00b0C trajectory, Thomas Buberl, the CEO of AXA, once again defended this support in the name of the transition, relying on the disputed integration of certain gas power plants into the European taxonomy.<\/p>\n<\/div>

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So, AGM season generated a lot of words, some tinged with greenwashing. The greatest affront to those already impacted by fossil fuels and climate change came from Soci\u00e9t\u00e9 G\u00e9n\u00e9rale, which promised to act but to \u00ab\u00a0take its time.\u00a0\u00bb But the picture is not as bleak as last year. We will ensure that promises are kept and can undoubtedly count on civil society not to stop targeting the financial actors behind TotalEnergies<\/a><\/span> and others until real measures against oil and gas expansion are adopted.<\/b><\/p>\n<\/div>

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Reclaim Finance will publish a detailed analysis during the summer of the responses to written questions submitted prior to the general meetings of the six major French financial actors, as well as a forthcoming review of the AGMs of the energy companies and details of how their shareholders voted.<\/i><\/p>\n<\/div>

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Notes :<\/h3><\/span>
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