Chevron Shareholders Approve Proposal To Cut Customer Emissions

Chevron Corp investors voted in favor of a proposal on Wednesday asking the oil major to cut its customer emissions, joining shareholders around the globe in raising pressure on energy companies to reduce their carbon footprint.

Shareholders voted 61% in favor of a proposal to cut so called “Scope 3” emissions, generated by the use of its products, according to a preliminary count announced by Chevron at its annual general meeting.

Chevron’s investor vote comes as a bitter shareholder revolt at its closest rival Exxon Mobil Corp nears a conclusion.

Engine No. 1, a tiny activist fund, has proposed three of its own nominees to Exxon’s board and is arguing that the top U.S. oil producer needs a better response to growing climate concerns.

While the “Scope 3” proposal does not require Chevron to set a target of how much it needs to cut emissions or by when, the overwhelming support for it shows growing investor frustration with companies, which they believe are not doing enough to tackle climate change.

Chevron has pledged to limit the pace of growth of its carbon emissions that contribute to climate change, but has not set long-term targets to achieve net zero as many European oil companies have done.

A Dutch court on Wednesday ordered European oil major Shell to significantly deepen planned greenhouse gas emission cuts, a landmark ruling that could pave the way for legal action against energy companies around the world.