* Chevron, Exxon, Shell confront pushback on climate
* Shareholders, judge issue urgent calls for emission action
By Gary McWilliams
May 26 (Reuters) - Shareholders rebuked the top two U.S. oil
companies on Wednesday for dragging their feet on fighting
climate change, while a Dutch court ruled that Royal Dutch Shell
needs to accelerate cuts to greenhouse gas emissions.
"Today was a stark warning for Big Oil," said Bess Joffe, of
the Church Commissioners for England, which manages the Church
of England's investment fund, with executives "being held to
account by investors and lawmakers."
Exxon Mobil lost at least two board seats to an activist
hedge fund, shareholders at Chevron endorsed a call to further
reduce its emissions and a court deemed Royal Dutch Shell's
emissions targets insufficient.
Investor support for climate concerns could force oil and
gas companies to rethink how fast they pivot to other forms of
energy. BP Plc, which recently pledged to consult with
shareholders on its climate targets, could see the next test of
the groundswell.
A Dutch court ordered Shell to slash its carbon dioxide
emissions by 2030.
DISSIDENTS GET A WIN AT EXXON
Shell said it would appeal, and analysts called the decision
not the last word in the case.
"This ruling has negligible chance to survive appeals," said
Per Magnus Nysveen, of energy consultancy Rystad Energy.
In a stunning blow to top management at Exxon, shareholders
elected two change candidates for its board and approved
measures calling for annual reports on climate and grassroots
lobbying effort.
Activists could yet win a third seat with some votes still
to be counted and the full board not yet known.
After the meeting, CEO Darren Woods said Exxon heard
shareholders' desire to advance lower-carbon and cost-cutting
efforts.
"We are well positioned to respond,” he said.
Chevron shareholders backed a call for the company to cut
emissions from the end-use of its fuels with 61% supporting the
petition. Another resolution calling for a report on the
business impact of achieving net zero emissions by 2050 was
backed by 48% of votes cast.
PROTEST VOTES
"The question for oil companies is when and how much" do
they reduce oil and gas production in response to investor and
social concerns, said Charles Elson, a professor of corporate
governance at the University of Delaware.
Investors have registered protests over the slow pace of
change, but corporate executives will have to evaluate how to
implement what are non-binding resolutions, he said.
The votes signal a new sense of urgency, said Mark Van Baal,
who leads a climate advocacy group that placed resolutions
calling for emissions cuts at Chevron, ConocoPhillips and
Phillips66. All got at least 58% support.
Investors are saying: "we want you to act by decreasing
emissions now, not in the distant future," he said.
(Reporting by Gary McWilliams and Jennifer Hiller in Houston;
Editing by David Gregorio)
BP (BP.)
