Hermes EOS has encouraged the company to explain its climate change strategy more clearly and we are pleased with the company’s considerable efforts to address this. In addition to one-to-one meetings at the company’s headquarters, we co-signed the Institutional Investors Group on Climate Change carbon asset risk letter in 2013. The company wrote a public, detailed response which has moved forward the debate on what oil and gas companies should do in response to climate change. Alongside this written response, the company facilitated two lengthy meetings for interested investors on the issue in 2013 and 2014. We have recently encouraged the company to support carbon pricing publicly and explicitly and we look forward to continuing our dialogue with the company and other important players in the climate change debate to encourage development of meaningful and progressive carbon pricing internationally.
The company’s greater willingness to engage so deeply in the debate on climate change is a significant step forward for the company and the industry. Along with most of the major oil and gas companies, it has rejected emissions reduction and intensity targets across its business but has explained that each of its business units has efficiency targets.
These case studies are examples of companies we have either held or engaged with.
Source: Hermes Investment Management.