Rebel vote sees record support at TotalEnergies AGM

TotalEnergies' annual shareholders' meeting today saw record support for an activist investor-backed resolution calling for the French oil major to reduce its emissions in absolute terms by 2030.

Shareholders cast 30.44pc of votes in support of the resolution, which called for the company to align its 2030 target for the reduction of Scope 3 emissions — greenhouse gas emissions from the use of its oil and gas production — with the 2015 Paris climate agreement.

Arguing against the resolution before the vote, chief executive Patrick Pouyanne rejected the idea that the company should be held entirely responsible for Scope 3 emissions. Using an example from the aviation industry, he pointed out that despite airlines having made great strides in improving the fuel efficiency of their aircraft, their overall operational (Scope 1) emissions — which correspond to oil and gas companies' Scope 3 emissions — keep increasing.

"Why? Because the demand for air transportation has increased," Pouyanne said. "There are more people on the planet who want to fly," he said, noting that it is not TotalEnergies' job to decide its customers' business models. "Our job is to supply energy."

Pouyanne argued that the company is evolving its energy mix and that its strategy aligns with the IEA's Announced Pledges Scenario, which defines a path to limit the rise in global temperatures to within 1.7°C by 2050.

After the vote, activist group Follow This pointed out that the increased support from shareholders for its resolution, from 17pc in 2020 to more than 30pc this time around, shows that financial institutions have "stepped up their efforts" in the fight against climate change. "Voting is crucial in compelling Big Oil to drive down emissions," said Tarek Bouhouch of Follow This France. "Big Oil can make or break the Paris climate agreement and must respond to shareholders."

Friday's vote at the TotalEnergies' annual general meeting (AGM) followed a disappointing result for Follow This at Shell's shareholder gathering on Tuesday. The group had appeared to gain momentum for a similar climate resolution after enticing members of another climate investor group, Climate Action 100+, to give their support having voted against the resolution in previous years. Still, shareholders only cast 20pc of their votes in favour of the resolution, the same portion as in 2022.

Votes on the Follow This climate resolution will also be held at Chevron's and ExxonMobil's AGMs next week.

By Jon Mainwaring