The climate activist group Follow This has halted its campaign for tougher emission reductions from oil and gas companies due to declining investor interest and shifting market dynamics.
The climate activist shareholder group Follow This has announced the suspension of its nearly decade-long campaign aimed at securing stronger emission reduction commitments from major oil and gas producers. This decision, revealed on Thursday, arises from a noticeable decline in investor interest in climate resolutions, a trend that has shifted significantly in the wake of recent global events and market dynamics.
Established in 2016, Follow This initiated its climate resolution efforts at shareholder meetings, garnering varying levels of support over the years. Notable results include achieving approximately 80% backing at Phillips 66 and 60% at Chevron. Other major companies such as Exxon Mobil and Shell saw around a third of shareholders supporting these resolutions, while BP received about a fifth of support.
However, the landscape changed dramatically following the surge in oil and gas prices, which was largely attributed to geopolitical tensions such as Russia’s invasion of Ukraine. This spike in prices, combined with disappointing returns from renewable energy investments, has redirected shareholders’ attention towards the profitability of conventional oil and gas operations.
In light of this, prominent energy companies, including BP, Shell, and Equinor, have recently downgraded their energy transition aspirations, signalling a retreat from aggressive climate commitments. “Institutional investors are reluctant to use their voting power,” remarked Mark van Baal, the founder of Follow This. This sentiment reflects a broader hesitance among investors to support climate resolutions when faced with pressing economic concerns.
Follow This has also faced legal challenges in its advocacy. In the previous year, Exxon Mobil filed a lawsuit against the group and fellow activist Arjuna Capital after they introduced a climate-related resolution. Although a judge dismissed the suit, it led to the withdrawal of the resolution, with defendants agreeing to refrain from reintroducing similar proposals in the future or assisting others in doing so.
Despite the setbacks, Follow This continues its dialogue with supportive investors to reassess strategies and tackle the obstacles hindering other investors from voting in line with their purported commitments to climate action. The group’s future initiatives may reflect a response to these challenges as they seek to navigate the evolving landscape of shareholder activism in the context of climate change.
Source: Noah Wire Services
- https://www.follow-this.org/texas-court-dismisses-exxons-lawsuit-against-climate-activist-shareholders/ – This URL supports the claim about Exxon Mobil’s lawsuit against climate activist shareholders, which was eventually dismissed. It details the legal challenge faced by Follow This and its implications for shareholder activism.
- https://www.follow-this.org/u-s-oil-giant-exxon-mobil-sues-activist-investors-to-prevent-climate-proposals/ – This URL provides further context on the lawsuit filed by Exxon Mobil against activist investors, highlighting the company’s efforts to prevent climate-related proposals at its shareholder meetings.
- https://theedgemalaysia.com/node/748696 – This URL corroborates Follow This’s activist efforts, specifically its actions regarding BP’s climate commitments and the recent shift in BP’s energy strategy. It reflects the group’s continued engagement with major oil companies.
- https://www.follow-this.org/ – This is the official website of Follow This, providing an overview of its mission and past campaigns to secure stronger emission reduction commitments from major oil and gas producers.
- https://www.cnbc.com/2024/01/22/exxonmobil-lawsuit-climate-activist-investors.html – This URL supports the information about Exxon Mobil’s legal actions against climate activists, detailing the company’s motivations and the broader implications for shareholder activism on climate issues.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative mentions recent global events and market dynamics, indicating it is likely current. However, without a specific date or direct references to very recent events, it cannot be confirmed as completely up-to-date.
Quotes check
Score:
9
Notes:
The quote from Mark van Baal could not be verified online, suggesting it may be original or from a recent update not indexed yet.
Source reliability
Score:
6
Notes:
The narrative originates from an unverified feed on Google News, which does not specify the exact publication. While the content seems well-researched, the lack of a specific reputable source diminishes certainty.
Plausability check
Score:
9
Notes:
The information about Follow This and shifts in investor interest aligns with plausible trends in the energy sector, especially considering geopolitical influences like Russia’s invasion of Ukraine.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
While the narrative provides plausible information and includes what appears to be an original quote, the lack of a specific reputable source and the inability to fully verify its timeliness raise some concerns.
