{"id":30372,"date":"2023-09-19T17:55:44","date_gmt":"2023-09-19T15:55:44","guid":{"rendered":"https:\/\/reclaimfinance.org\/site\/?p=30372"},"modified":"2023-10-04T19:08:50","modified_gmt":"2023-10-04T17:08:50","slug":"totalenergies-shareholders-vote-for-climate-chaos","status":"publish","type":"post","link":"https:\/\/reclaimfinance.org\/site\/en\/2023\/09\/19\/totalenergies-shareholders-vote-for-climate-chaos\/","title":{"rendered":"TotalEnergies\u2019 shareholders vote for climate chaos"},"content":{"rendered":"

At TotalEnergies’ 2023 annual general meeting, shareholders had the opportunity to express themselves through their votes on the company’s climate strategy, both through resolutions dedicated to this topic and routine votes. Despite investor rhetoric presenting shareholder engagement as one of the effective levers to support corporate transition, the voting results showed that the majority of TotalEnergies shareholders continue to support an inadequate climate strategy.<\/span><\/b>\u00a0<\/span><\/p>\n<\/div>

Reclaim Finance has scrutinised the individual votes of the company’s thirty largest international shareholders, as well as those of the ten largest French shareholders, based on TotalEnergies’ shareholder base on 11 May 2023.<\/span>\u00a0<\/span><\/p>\n<\/div>

Insufficient votes on climate-related resolutions<\/h2><\/span>
<\/div><\/div><\/div>

This year, a group of minority shareholders filed a resolution calling on TotalEnergies to align its indirect greenhouse gas emission targets, known as \u00ab\u00a0scope 3\u00a0\u00bb, with the Paris Agreement by 2030. Although TotalEnergies plans to reduce these emissions by only 2% by 2030, only 30.4% of investors supported this resolution, with the rest being complicit in the company’s climate inaction. Amongthe company’s thirty largest shareholders, fourteen voted against the resolution (including Blackrock, Vanguard, Norges Bank Investment Management, and Allianz Global Investors), four abstained, and three cast mixed votes. Among the ten largest French shareholders, AXA IM and Carmignac did not support the resolution, and Ostrum abstained.\u00a0<\/span>\u00a0<\/span><\/p>\n

The company’s management also submitted to its shareholders a Say on Climate vote on the implementation of its climate strategy. In spite of its name, this strategy is not at all climate-friendly since it authorises the development of new oil and gas fields despite their incompatibility with a 1.5\u00b0C trajectory. And yet, 88.8% of TotalEnergies\u2019 shareholders and almost all the largest international ones approved the Say on Climate, with the exception of Dimensional Fund Advisors and Ostrum who voted against, and DWS and Thornburg Investment Management, which abstained. In France, the company’s main shareholders also supported the company’s climate plan, except for two [1].<\/span>\u00a0<\/span><\/p>\n

Oddly, six investors, including Amundi, BNP Paribas AM, UBS AM and Union Investment, showed inconsistency between their vote for the shareholder climate resolution and their vote for the Say on Climate. This behaviour demonstrates a very partial shareholder engagement approach and sends a confused message to the company’s management about the direction its climate strategy should take.<\/span>\u00a0<\/span><\/p>\n<\/div>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Top 30 international investors<\/span><\/b><\/p>\n<\/th>\n

Say on Climate<\/span><\/b>\u00a0<\/span><\/th>\n\n

Climate-related shareholder resolution<\/span><\/b><\/p>\n<\/th>\n<\/tr>\n<\/thead>\n

Blackrock<\/span><\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
Vanguard<\/span><\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
Capital Group<\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
Amundi<\/span><\/span><\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Norges Bank \/ Norges Bank Investment Management<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
Fidelity Investments \/ Fidelity Management and Research<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
Deutsche Bank \/ DWS<\/span>\u00a0<\/span><\/td>\nABSTAIN<\/td>\nABSTAIN<\/td>\n<\/tr>\n
T Rowe Price<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
Goldman Sachs \/ Goldman Sachs AM<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
Dodge & Cox<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
UBS \/ UBS AM<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
BNP Paribas \/ BNP Paribas AM<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Massachussetts Financial Services<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
Invesco<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nSPLIT<\/td>\n<\/tr>\n
Government Pension Investment Fund (GPIF)<\/span>\u00a0<\/span><\/td>\nNo disclosure at all<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Dimensional Fund Advisors<\/span>\u00a0<\/span><\/td>\nAGAINST<\/td>\nAGAINST<\/td>\n<\/tr>\n
JP Morgan Chase \/ JP Morgan AM<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
Fidelity International<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nABSTAIN<\/td>\n<\/tr>\n
State Street \/ State Street Global Advisors<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
Thornburg Investment Management<\/span><\/td>\nABSTAIN<\/td>\nABSTAIN<\/td>\n<\/tr>\n
Janus Henderon<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nSPLIT<\/td>\n<\/tr>\n
TIIA \/ Nuveen<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
CDPQ<\/span>\u00a0<\/span><\/td>\nNo disclosure yet
\n<\/span><\/td>\n<\/tr>\n
DZ Bank \/ Union Investment<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Federated Hermes<\/span>\u00a0<\/span><\/td>\nNo disclosure yet<\/span><\/td>\n<\/tr>\n
GQG Partners<\/span>\u00a0<\/span><\/td>\nNo disclosure yet<\/span><\/td>\n<\/tr>\n
Charles Schwab \/ Charles Schwab AM<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
DekaBank Deutsche Girozentrale<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Natixis \/ Natixis IM International<\/span>\u00a0<\/span><\/td>\nNo disclosure yet<\/span><\/td>\n<\/tr>\n
Natixis \/ Ostrum<\/span>\u00a0<\/span><\/td>\nAGAINST<\/span><\/td>\nABSTAIN<\/td>\n<\/tr>\n
Allianz \/ AGI<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
Allianz \/ PIMCO<\/span>\u00a0<\/span><\/td>\nNo disclosure yet<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Top 10 French investors<\/span><\/b>\u00a0<\/span><\/th>\nSay on Climate<\/span><\/b>\u00a0<\/span><\/th>\nClimate-related shareholder resolution<\/span><\/b>\u00a0<\/span><\/th>\n<\/tr>\n<\/thead>\n
Amundi<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
BNP Paribas<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Natixis \/ Natixis IM International<\/span>\u00a0<\/span><\/td>\nNo disclosure yet<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Natixis \/ Ostrum<\/span>\u00a0<\/span><\/td>\nAGAINST<\/span><\/td>\nABSTAIN<\/td>\n<\/tr>\n
CPR Asset Management<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
BHF Group SPRL \/ Oddo BHF<\/span>\u00a0<\/span><\/td>\nNo disclosure at all<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Carmignac Gestion SA<\/span>\u00a0<\/span><\/td>\nAGAINST<\/td>\nAGAINST<\/td>\n<\/tr>\n
Soci\u00e9t\u00e9 G\u00e9n\u00e9rale SA<\/span>\u00a0<\/span><\/td>\nNo disclosure at all<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
DNCA Finance SCS<\/span>\u00a0<\/span><\/td>\n\n

Data published is too partial to be analyzed<\/span>\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

AXA SA \/ AXA IM<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\n<\/tr>\n
AG2R La Mondiale<\/span>\u00a0<\/span><\/td>\nNo disclosure at all<\/span>\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

The missed opportunity of opposing routine resolutions<\/h2><\/span>
<\/div><\/div><\/div>

Investors can also integrate climate issues into routine votes, such as re-appointment of board members, approval of remuneration, and approval of financial statements. Yet, these levers for putting climate issues at the heart of a company’s operations are largely ignored by shareholders, and votes at TotalEnergies’ 2023 annual general meeting were no exception.<\/span>\u00a0<\/span><\/p>\n

Regarding re-appointment of directors, this year the company’s shareholders voted on the re-election of Marie-Christine Coisne-Roquette, who sits on the Strategy and CSR Committee, and Mark Cutifani. Although they both failed to encourage the company to define a climate plan in line with a 1.5\u00b0C scenario, their mandates were respectively renewed with the support of 83.9% and 91.2% of investors. Among the company’s major shareholders, only DekaBank Deutsche Girozentrale voted against the two outgoing directors, without specifying whether the decision had been motivated by climate issues.<\/span>\u00a0<\/span><\/p>\n

Votes on remuneration did not fare any better. Despite the fact that the 2022 variable remuneration package for CEO Patrick Pouyann\u00e9 did not sufficiently integrate quality climate-related criteria [2], 90.6% of investors approved it. Only three of the largest shareholders opposed the CEO’s remuneration: Union Investment, DekaBank Deutsche Girozentrale and Ostrum. However, none of them indicated that this opposition was due to climate issues.<\/span>\u00a0<\/span><\/p>\n

Lastly, the company’s consolidated financial statements were approved by 99.9% of shareholders, including all the major shareholders, even though the statements do not properly integrate the risks associated with climate change and transition [3].<\/span>\u00a0<\/span><\/p>\n<\/div>\n

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Top 30 international investors<\/span><\/b>\u00a0<\/span><\/p>\n<\/th>\n

\n

Re-appointment of board members<\/span><\/b>\u00a0<\/span><\/p>\n<\/th>\n

Remuneration<\/span><\/span><\/strong><\/th>\n\n

Financial statements<\/span><\/b>\u00a0<\/span><\/p>\n<\/th>\n<\/tr>\n<\/thead>\n

Blackrock<\/span><\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Vanguard<\/span><\/span><\/td>\nSPLIT<\/td>\nSPLIT<\/td>\nFOR<\/td>\n<\/tr>\n
Capital Group<\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Amundi<\/span><\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Norges Bank \/ Norges Bank Investment Management<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Fidelity Investments \/ Fidelity Management and Research<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Deutsche Bank \/ DWS<\/span>\u00a0<\/span><\/td>\nCoisne-Roquette : ABSTAIN
\nCutifani :\u00a0FOR<\/td>\n		FOR<\/td>\nFOR<\/td>\n<\/tr>\n
T Rowe Price<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Goldman Sachs \/ Goldman Sachs AM<\/span>\u00a0<\/span><\/td>\nSPLIT<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Dodge & Cox<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
UBS \/ UBS AM<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
BNP Paribas \/ BNP Paribas AM<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Massachussetts Financial Services<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Invesco<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Government Pension Investment Fund (GPIF)<\/span>\u00a0<\/span><\/td>\nNo disclosure at all
\n<\/span><\/td>\n<\/tr>\n
Dimensional Fund Advisors<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
JP Morgan Chase \/ JP Morgan AM<\/span>\u00a0<\/span><\/td>\nCoisne-Roquette : AGAINST
\nCutifani : FOR<\/td>\n		FOR<\/td>\nFOR<\/td>\n<\/tr>\n
Fidelity International<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
State Street \/ State Street Global Advisors<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Thornburg Investment Management<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Janus Henderon<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
TIIA \/ Nuveen<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
CDPQ<\/span>\u00a0<\/span><\/td>\nNo disclosure yet<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
DZ Bank \/ Union Investment<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\nFOR<\/td>\n<\/tr>\n
Federated Hermes<\/span>\u00a0<\/span><\/td>\nNo disclosure yet<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
GQG Partners<\/span>\u00a0<\/span><\/td>\nNo disclosure yet<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Charles Schwab \/ Charles Schwab AM<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
DekaBank Deutsche Girozentrale<\/span>\u00a0<\/span><\/td>\nAGAINST<\/td>\nAGAINST<\/td>\nFOR<\/td>\n<\/tr>\n
Natixis \/ Natixis IM International<\/span>\u00a0<\/span><\/td>\nNo disclosure yet<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Natixis \/ Ostrum<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\nFOR<\/td>\n<\/tr>\n
Allianz \/ AGI<\/span>\u00a0<\/span><\/td>\nCoisne-Roquette : AGAINST
\nCutifani :\u00a0FOR<\/td>\n		FOR<\/td>\nFOR<\/td>\n<\/tr>\n
Allianz \/ PIMCO<\/span>\u00a0<\/span><\/td>\nNo disclosure yet<\/span>\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Top 10 French investors<\/span><\/b><\/th>\nRe-appointment of board members<\/span><\/b><\/th>\n<\/b>Remuneration<\/span><\/b><\/th>\nFinancial statements<\/span><\/b><\/th>\n<\/tr>\n<\/thead>\n
Amundi<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
BNP Paribas<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Natixis \/ Natixis IM International<\/span>\u00a0<\/span><\/td>\nNo disclosure yet<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Natixis \/ Ostrum<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nAGAINST<\/td>\nFOR<\/td>\n<\/tr>\n
CPR Asset Management<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
BHF Group SPRL \/ Oddo BHF<\/span>\u00a0<\/span><\/td>\nNo disclosure at all<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Carmignac Gestion SA<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
Soci\u00e9t\u00e9 G\u00e9n\u00e9rale SA<\/span>\u00a0<\/span><\/td>\nNo disclosure at all<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
DNCA Finance SCS<\/span>\u00a0<\/span><\/td>\nData published is too partial to be analyzed<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
AXA SA \/ AXA IM<\/span>\u00a0<\/span><\/td>\nFOR<\/td>\nFOR<\/td>\nFOR<\/td>\n<\/tr>\n
AG2R La Mondiale<\/span>\u00a0<\/span><\/td>\nNo disclosure at all<\/span>\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

A persistent lack of transparency<\/h2><\/span>
<\/div><\/div><\/div>

The annual publication of investor votes for all portfolio companies is essential for to ensure accountability to their clients and external stakeholders, and to demonstrate the credibility of their shareholder engagement approach. However, many investors still do not publish their detailed votes after annual general meetings, such as the Government Pension Investment Fund (GPIF), Oddo BHF, AG2R La Mondiale and Soci\u00e9t\u00e9 G\u00e9n\u00e9rale’s asset management subsidiaries. Other TotalEnergies shareholders publish their votes annually, but with too long a delay after the meeting. For example, PIMCO, Federated Hermes and Natixis IM International have still not published details of their votes three months after the company\u2019s meeting.<\/span>\u00a0<\/span><\/p>\n

Given the considerable influence of TotalEnergies\u2019 shareholders on the company’s strategy, and their pro-shareholder engagement rhetoric in the fight against global warming, their votes in 2023 are incomprehensible. Reclaim Finance is calling on all shareholders of the oil and gas company to radically reconsider their voting approach for the coming proxy voting season, and to integrate climate issues into all relevant routine resolutions.<\/span><\/b>\u00a0<\/span><\/p>\n<\/div>

<\/div><\/div><\/div>

Notes:<\/h3><\/span>
<\/div><\/div><\/div>
    \n
  1. Including Carmignac. However, the logic of this investor’s vote does not seem clear, given its vote against Say on Climate. It should be noted that the investor has not published any justification for this vote, or the vote against the Say on Climate.<\/span>\u00a0<\/span><\/li>\n
  2. Patrick Pouyann\u00e9’s variable remuneration for 2022 includes only one quantitative climate-related criterion, which does not include the company’s scope 3. The other ESG-related criteria considered to determine the variable remuneration are qualitative and therefore cannot be evaluated objectively.<\/span>\u00a0<\/span><\/li>\n
  3. Based on analysis by the Carbon Tracker Initiative and the Climate Accounting and Audit Project, corresponding to the \u00ab\u00a0Climate Accounting and Audit\u00a0\u00bb indicator in the <\/span>Climate Action 100+ benchmark<\/a><\/span>.<\/span>\u00a0<\/span><\/li>\n<\/ol>\n<\/div>
    <\/div><\/div><\/div><\/div><\/div>

    read also<\/h2><\/div>
    <\/div><\/div>