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TotalEnergies pledges climate plan

France-based TotalEnergies has won over a group of influential investors by committing to publish a detailed plan for its decarbonisation efforts.

The group had put forward a draft resolution calling for more transparency about TotalEnergies’ transition strategy, which would have been voted on at the company’s annual general meeting (AGM) for shareholders. The group – which includes La Banque Postale Asset Management, La Financiere de l’Echiquier, and Meeschaert Amilton AM – has now said the new commitment makes the resolution unnecessary.

Like many other traditional oil majors, TotalEnergies, which was formerly known as Total and also makes industrial products like food safe lubricants and metalworking fluids, has come under increasing pressure from activists and investors at AGMs to accelerate efforts to decarbonise in response to concerns about climate change. Last year, a small hedge fund even managed to get new board members appointed at Exxon Mobil.

TotalEnergies published its own climate report in March. In it, Patrick Pouyanné wrote about its vision for 2050:

“Renewable electricity will account for half of its production; new decarbonized molecules from biomass (biofuels and biogas) or from renewable electricity (hydrogen and e-fuels) will represent a quarter; and hydrocarbons (oil and gas) the remaining quarter, with their residual emissions fully captured, recycled or offset.”

The report will be subjected to an advisory vote at the AGM on May 25, but it will now be accompanied by details about intermediate 2025 and 2030 production targets by energy type, sector-specific investment plans, and other goals related to greenhouse gas emissions.

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