The world’s largest sovereign wealth fund said Tuesday it will back shareholder proposals that would require ExxonMobil and Chevron to disclose how climate change could impact their businesses.
According to Reuters, Norges Bank Investment Management, the manager of Norway’s Government Pension Fund Global, will vote in favor of shareholder proposals that would require the companies to disclose more information about business risks and opportunities tied to climate change.
The Chevron shareholder proposal requests that the company’s board “adopt long-term, quantitative, company-wide targets for reducing greenhouse gas emissions in products and operations that take into consideration the global commitment…to limit warming to 2°C.”
Chevron’s board said in the company’s proxy statement that it shares concerns about climate change risks but it believes the proposal is “based upon the flawed premise that a global agreement to limit warming to 2 degrees Celsius requires each individual fossil fuel producer to curtail development of resources proportionately.”
Exxon’s shareholder proposal requests that the company begin publishing an annual assessment of long term portfolio impacts related to public climate change policies by 2017 “at reasonable cost and omitting proprietary information.”
Exxon’s board has urged shareholders to vote against the measure and said the company “is confident that [its] robust planning and investment processes adequately contemplate and address climate change related risks, ensuring the viability of its assets as detailed in the above report.”
NBIM will also support a proposal to separate the chairman position at ExxonMobil from the CEO post that are both currently held by Rex Tillerson, Bloomberg said.
The fund is also expected to oppose Tilllerson’s re-election to Exxon’s board and the re-election of Chevron CEO and chairman John Watson’s to his company’s board, Bloomberg added.
According to NBIM’s website, the fund currently holds a 0.78 percent stake in Exxon worth about and has invested $2.54 billion in the company.
NBIM holds a 0.85 percent stake in Chevron and has invested $1.44 billion in the company.
News of the fund’s plans comes just weeks after the Rockefeller Family Fund said it will divest from its fossil fuel holdings and issued a strongly worded condemnation of ExxonMobil.
“We would be remiss if we failed to focus on what we believe to be the morally reprehensible conduct on the part of ExxonMobil,” the fund said.
Exxon has denied any wrongdoing and defended its record on climate change, noting that it has included information about the business risks posed by climate change for many years in its 10-K, Corporate Citizenship Report and in other reports to shareholders.