In a matter of hours last week, shockwaves hit the fossil fuel industry as three of the world’s largest firms were dealt blows underscoring the global momentum around climate change.
- A court in the Netherlands ordered Royal Dutch Shell to redouble its efforts to reduce its emissions by 45% by 2030, judging the company’s efforts to date as insufficient.
- Shareholders at Exxon’s annual meeting elected activist Engine No. 1 candidates to the board of directors, despite Exxon’s $35 million campaign to resist the changes. BlackRock – the world’s largest asset manager – backed the Engine No. 1 candidates in a clear sign investors are taking seriously the long-term financial risk posed by climate change and demanding companies do the same.
- Sixty-one percent of Chevron’s shareholders approved a resolution to measure and reduce Scope 3 emissions.
Meanwhile, Ford Motor Company announced it will invest over $30 billion to fully electrify 40 percent of its vehicle lineup by 2030, adding to the automotive industry’s growing shift away from fossil fuels.
Taken together, it’s clear oil and gas firms that have long resisted substantial action on climate change have dwindling options but to seriously reorient their business strategies for a lower-carbon future.