TotalEnergies urges rejection of climate resolution submitted by shareholders

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Logo of TotalEnergies at an electric vehicle fuelling station near Paris

By America Hernandez

PARIS - French oil major TotalEnergies on Friday urged shareholders to reject an AGM resolution seeking accelerated cuts under the French oil major's greenhouse gas emission reduction programme.

The resolution was submitted to the May 26 annual meeting AGM by climate activist group Follow This alongside a group of investors with $1.1 trillion in assets under management.

It asks the company to submit to absolute emissions cuts by 2030, and to include in that promise the Scope 3 emissions created post-sale when the fuels are eventually burned by customers, such as in planes or cars.

"The implementation of this strategy would be bad for shareholders as the company would have to sell its oil and gas product marketing activities to other operators," TotalEnergies said on Friday in its response.

"Without an evolution of the overall structure of energy demand, (this) would lead to a shift of this demand to other suppliers, notably the national oil companies of producing countries ... and therefore no positive impact on the climate."

TotalEnergies has previously said its emissions will not register a big reduction by 2030 in absolute terms. The company will instead urge investors to approve its own climate plan, covering more modest emissions cuts at its own facilities.

Follow This has filed similar resolutions to the AGMs of BP, Chevron, Exxon Mobil and Shell.

BP shareholders rejected that resolution on Thursday, though it garnered 16.75% of votes. Shell has recommended a vote against at its general assembly next month.

(editing by John Stonestreet)