The energy company won’t be able to exclude a resolution proposed by Amsterdam-based investor group Follow This from proxy documents before its annual shareholder meeting, according to a letter by the U.S. Securities and Exchange Commission seen by Bloomberg. The proposal outlines how to meet climate targets under the Paris Climate Agreement.
The decision is another victory for climate activists, who have increasingly pressured fossil fuel companies to disclose a solid plan on how to slash their emissions. Last year, oil majors from Exxon Mobil Corp. to Shell Plc. faced shareholder rebellions over climate issues during their annual investor gatherings.
While Occidental has a goal to fully offset its carbon footprint by 2050, the plan fails to align with the Paris Agreement’s requirements by lacking a commitment to reduce overall emissions in the medium term, Follow This said in a statement.
Occidental has established a “robust set of greenhouse gas targets to advance” its net-zero goals and have endorsed several initiatives that include additional climate commitments, company spokesman Eric Moses said by email in response to questions.
“We look forward to continued engagement with Follow This and other shareholders on our net-zero strategy,” Moses said.