ISS advises TotalEnergies investors to support climate activist resolution

The resolution filed by climate activists Follow This, supported by a number of institutional investors, asks the French firm to align to the Paris Agreement goal of keeping global warming below 2 degrees Celsius above pre-industrial levels. TotalEnergies forecasts its overall greenhouse gas emissions will not see a big reduction by 2030 given it wants to grow its gas business and has recommended shareholders vote against Follow This.

Influential proxy advisory ISS recommended that TotalEnergies investors support a climate activist shareholder resolution calling for faster emissions cuts at the May 26 annual general meeting, according to a document seen by Reuters. The resolution filed by climate activists Follow This, supported by a number of institutional investors, asks the French firm to align to the Paris Agreement goal of keeping global warming below 2 degrees Celsius above pre-industrial levels.

TotalEnergies forecasts its overall greenhouse gas emissions will not see a big reduction by 2030 given it wants to grow its gas business and has recommended shareholders vote against Follow This. Scientists say the world needs to cut greenhouse gas emissions by around 43% by 2030 from 2019 levels to have any hope of realising the aims of the Paris deal.

"(TotalEnergies') plan shows lack of rigor, notably with regards to the 2030 worldwide Scope 3 objective and the ongoing business plan that develops oil projects and relies on gas over the period 2020-2030," Insitutional Shareholder Services (ISS) said. ISS has recommended shareholders in TotalEnergies rival Shell vote against the Follow This, while acknowledging the merits of the proposal. ISS also recommended a vote against Follow This at this year's BP shareholder meeting.