Deactivating climate activism? The seven strategies oil and gas majors use to counter rising shareholder action
File(s)230807 Shareholder paper published.pdf (2.3 MB)
Published version
Author(s)
Tillotson, Pete
Slade, Raphael
Staffell, Iain
Halttunen, Krista
Type
Journal Article
Abstract
International oil companies (IOCs) are facing mounting pressure to transition towards low-carbon business models in line with the Paris Agreement's goals to limit global warming. Shareholder activism in oil and gas companies has increased rapidly over the past decade but has not yet been widely researched. This study explores company communication strategies within the context of climate and transition-related shareholder activism at IOC annual general meetings (AGMs). We analyse 123 relevant proxy statements produced by ExxonMobil, Chevron, and BP at their AGMs from 2006 to 2022. This yielded 10 distinct categories of resolution request, and seven common themes of communicative strategy deployed by IOCs. IOCs were generally successful at minimising the impact of climate-related and environmental shareholder activism, with most resolutions unsuccessful, and even successful ones having limited impact on company performance. However, recent shareholder revolts reveal the oil and gas (O&G) sector is experiencing more instances of, and more successful, investor pressure to improve environmental performance. Cases of voluntary changes in company policy and behaviour further indicate the potential for shareholder activism to influence low-carbon transitions. Further research of the phenomenon itself to gain greater understanding of IOC response strategies can yield insights into the nature and likelihood of a transition away from fossil fuels in the future.
Date Issued
2023-09
Date Acceptance
2023-06-22
Citation
Energy Research and Social Science, 2023, 103, pp.1-14
ISSN
2214-6296
Publisher
Elsevier
Start Page
1
End Page
14
Journal / Book Title
Energy Research and Social Science
Volume
103
Copyright Statement
© 2023 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
Identifier
http://dx.doi.org/10.1016/j.erss.2023.103190
Publication Status
Published
Article Number
103190
Date Publish Online
2023-07-25