Nearly three-quarters of the shareholders rejected the proposal led by the activist group of shareholders Investors for Paris compliance.
Group members called for better accounting for the company’s emissions to include Category 3 emissions, which are greenhouse gas emissions from the use of Enbridge products.
The group also wanted Enbridge to set a goal of reducing total such emissions by 2030 and for its spending on infrastructure to reflect its desire to improve its carbon footprint.
Show yourself that you understand these basic standards and how you will achieve them. Take the carbon neutral commitment and incorporate it into your business strategy
explained in an interview Duncan Kenyon, Director Investors for Paris compliance.
However, the company’s board of directors issued a recommendation to reject the offer. In its argument, the Council expressed concern that the required intermediate objectives were not in place for its sector, and therefore would be premature.
The proposal also adopts a fast-track approach to decarbonization, which would destroy stock value and harm the affordability of energy that millions of people depend on.
-Can we read in the documents accompanying the general meeting.
Continuing financial activity
If the rejection did not come as a surprise to the group of shareholders, it also did not discourage them. According to Duncan Kenyon, the proposal was made several months ago, which makes it possible to start a dialogue with the company.
I understand them. They don’t want to be the first to raise their hand and admit that their business model is in jeopardy. There will be a decrease in stock. But there is a middle ground to be found that goes beyond saying we will get there by 2050. They can acknowledge that they are at risk and offer a credible path.
he is referring to.
The group has made similar proposals with Canadian banks and claims that they have made progress with some of them. It also plans to continue this kind of strategy with other oil companies.
There has been an impressive shift in the sector that recognizes climate change and makes carbon neutral commitments. What we now question is the legitimacy of these commitments. Are they only there to act as cover and not to change the business model?
Duncan Kenyon explained.
