After BP, TotalEnergies prepares for a climate confrontation at the Annual General Meeting

TotalEnergies, the French oil major, is preparing for a climate debate with some of its shareholders at its general meeting on May 26. An advisory resolution on the group's indirect CO2 emissions, proposed by the activist shareholder organization Follow This, was included in the agenda of the AGM.

Share:

After BP on Thursday in London, another European oil major, TotalEnergies, is preparing for a climate debate with some of its shareholders, in particular on its emissions linked to the use of its hydrocarbons, at its general meeting on May 26. The group recommended Friday to its shareholders to vote against a resolution on its indirect CO2 emissions as “contrary to the interests” of the French oil and gas group, “its shareholders and its customers”.

Advisory resolution of the organization Follow This

The advisory resolution, from the activist shareholder organization Follow This, was nevertheless placed on the agenda of the AGM by the group’s board of directors meeting on Thursday, TotalEnergies said in a statement on Friday. By focusing on indirect CO2 emissions, it asks TotalEnergies to align its CO2 emissions reduction targets with the Paris Climate Agreement by 2030, i.e. to ensure that emissions related to the use of its own customers’ oil or gas, known as scope 3 emissions in the climate jargon, are also “aligned with the Paris Agreement.”

Direct or indirect, greenhouse gas emissions must be reduced sufficiently to achieve the goal of limiting global warming to below two degrees, and if possible to 1.5°C, compared to the pre-industrial period (1850-1900), according to the Paris Agreement. The oil company’s board of directors argues that its Scope 3 emissions actually “correspond” to the direct emissions of its own consumers. The group refuses to take responsibility for this, even though it says it wants to support its customers in their decarbonization process. “TotalEnergies does not manufacture airplanes, cars, cement or steel,” says TotalEnergies, which fears that a drastic reduction in its Scope 3 emissions would in fact redirect its customers to competing suppliers, “in particular national oil companies in producing countries.

“No beneficial effect”

According to the group, “this strategy would have no downward effect on global greenhouse gas emissions, and therefore no beneficial effect on the climate. Its implementation would also be “bad for its shareholders” insofar as it would have to sell its service stations and marketing activities of oil products and gas to other operators, says the group. “It would also be a counterproductive strategy for TotalEnergies’ customers,” he said. TotalEnergies is nevertheless committed to highlighting its climate efforts and is calling on its shareholders to “vote in favor” of its own climate resolution, which it will submit to the AGM the same day. This official climate strategy focuses on reducing emissions related to the production of hydrocarbons (on-site combustion, vehicles used, scope 1, or energy consumption, scope 2).

Presented for the third year to shareholders for approval, it includes a strengthening of commitments, such as not exceeding 38 MT of CO2 emissions in 2025 compared to 2015. “In the world of TotalEnergies, drug sellers should not be held responsible for drug use,” reacted Lucie Pinson, director of the NGO Reclaim Finance, calling on investors “concerned about climate issues” to “support” the Follow This resolution and “oppose TotalEnergies’ climate plan.” The objective, according to her, is to “force” the group to do “more than the paltry 2% reduction target it currently envisages for its scope 3 emissions by 2030”. Follow This had previously spearheaded the company’s first binding climate resolution in 2020 that garnered 17% approval. The coalition of 17 investors, which together manage $1.1 trillion and own nearly 1.5% of TotalEnergies, includes La Banque Postale AM, Edmond de Rotschild AM, La Financière de l’Echiquier, and Sycomore AM. On Thursday in London, at BP’s AGM, Follow This tabled a resolution that would have forced the group to revise its energy transition plans to make them more ambitious. It received 16.75% of the total votes.

TotalEnergies is selling half of a 604 MW Portuguese energy portfolio to the Japanese consortium MM Capital, Daiwa Energy and Mizuho Leasing for €178.5mn, retaining operation and future commercialisation of the assets concerned.
Q ENERGY France secures a bank financing of €109 million arranged by BPCE Energeco to build four new energy production facilities, totalling 55 MW of wind and solar capacity by the end of 2024.
Shell announces amendment of two annual reports after notification by Ernst & Young of non-compliance with SEC auditor partner rotation rules; however, financial statements remain unchanged.
The Financial Superintendency of Colombia approves an amendment to Ecopetrol’s local bonds and commercial paper program, enabling issuance of sustainable, indexed, or in-kind repayable instruments.
ABO Energy is selling its subsidiary ABO Energy Hellas and an energy project portfolio of approximately 1.5 gigawatts to HELLENiQ ENERGY Holdings, thus refocusing its strategic resources towards other markets, notably Germany, without major financial impact anticipated for 2025.
Iberdrola announces a supplementary dividend of €0.409 per share for 2024 under the "Iberdrola Retribución Flexible" programme, bringing the total annual remuneration to €0.645 per share, representing a year-on-year increase of 15.6%.
BHP has signed contracts with COSCO Shipping to charter two ammonia-powered Newcastlemax bulk carriers, primarily for transporting iron ore between Western Australia and Northeast Asia starting from 2028.
CBAK Energy and Anker Innovations jointly launch a battery cell manufacturing facility in Malaysia, with a commercial potential estimated at $357 million, further strengthening their strategic partnership in the lithium-ion battery sector.
German energy group Badenova plans to invest $4.64 billion in its energy networks and capacity by 2050, including $232 million committed from 2025, according to the company's recently published annual financial results.
ORIX announces the sale of the majority of its stake in Greenko to AM Green Power and commits a new USD 731mn investment in the Luxembourg-based AMG holding, confirming its strategic repositioning in next-generation energy.
Invenergy seals four further contracts with Meta to supply nearly eight hundred megawatts of solar and wind power to the group’s data centres, lifting total cooperation between the two companies to one point eight gigawatts.
Pedro Azagra leaves his role as CEO of Avangrid to become CEO of Iberdrola, while Jose Antonio Miranda and Kimberly Harriman succeed him as CEO and Deputy CEO respectively of the American subsidiary.
The US investment fund Ares Management enters Plenitude's capital by acquiring a 20% stake from Eni, valuing the Italian company at 10 billion euros and reinforcing its integrated energy strategy.
ENGIE secures a contract to reduce Airbus' industrial emissions in France, Germany, and Spain, targeting an 85% decrease by 2030 through various local energy infrastructures.
The French government formalizes its industrial strategy to develop a competitive national sector for sustainable aviation fuels, aiming to meet domestic demand and strengthen France's export position by 2030.
Alain Rhéaume, Chairman of Boralex’s Board of Directors for eight years, will leave his position by December, following the appointment of his successor by the governance committee of the Canadian energy group.
Norwegian group Statkraft plans an annual cost reduction of NOK2.9bn ($292 million) by 2027, citing possible job cuts amid rising financial burdens and volatility in the European energy market.
EDF merges EDF Renouvelables and its International Division into EDF power solutions, led by Béatrice Buffon, to optimise its global 31 GW low-carbon energy portfolio and strengthen its international positioning.
TotalEnergies announces a strategic partnership with Mistral AI to establish a dedicated innovation laboratory integrating artificial intelligence tools aimed at enhancing industrial efficiency, research, and customer relations.
The Energy Transitions Commission warns of economic risks tied to growing protectionism around clean technologies, while calling for global consensus on carbon pricing.