😥🌏💡 Climate Activists, Dey Gotta Rethink Da Kine Strategy afta Plenny Setbacks
Afta bumuch setbacks, da climate activists, dem wea focus on da shareholda kine, only wen get some small wins fo push da big oil guys fo go mo clean wit their business. So, wat? Da oil activism, she pau alreadi? 🛢️🤔
Exxon Mobil an Chevron, dey get da annual shareholda meetings comin up on Wednesday. But, goin be pretty chill, cuz all online. But da European guys, dey wen get wild meetings last week. Da environmental protesters wen rush da stage at da Shell meeting, an wen fight wit da cops wea get tear gas outside da Total one. 🇪🇺💥🚔
But even wit all da drama, da climate shareholda activists gotta rethink how dey doing tings. Dis two years afta da small hedge fund, Engine No. 1, wen pull off one big win against Exxon. 🏆⛽️
Da activists no wen win mo than half da votes in plenny important proxy votes since den. So, da big shots in da industry gotta rethink how dey doing tings. “In June, we going check out our strategy again, an tink bout wat we gonna do fo da next few years,” said Mark van Baal, who wen start da shareholda activist group Follow This. 🔄🗓️
An dis all happening even tho da big investors supporting da activists. Like, Norway get dis $1.4 trillion sovereign wealth fund, an dey wen promise fo vote wit da activists on climate stuff for Exxon and Chevron. So, da hard part now is how fo make da investors tink long-term bout da climate risk instead of just thinking bout da oil money coming in. Last year was “da year da empire wen fight back,” as Mark van Baal wen say, wen da oil giants wen successfully argue dat da energy crisis during a time of inflation, war, an post-pandemic travel boom was mo important dan da climate crisis. 💰🆚🌍
Up till now, most of da demands from da climate groups fo da industry fo cut back on carbon only wen get about 20 percent approval from da shareholders.
So, da activists are thinking about how fo change their game plan. Here’s wat Mr. Van Baal wen suggest:
1️⃣ Stay invested in da big oil guys, so can keep voting for climate resolutions. 2️⃣ Make moa impact by putting pressure on investment banks an insurance companies that support oil and gas projects. 3️⃣ File moa lawsuits, based on a big 2021 ruling in the Netherlands, wea one judge wen tell Shell fo speed up its switch to cleaner energy, and include stricter emission standards in its goals. (But get some drawbacks: dis strategy expensive an could take years to get through court. An probably not going work so good in the United States, wea conservatives are pushing back against da kine environmental, social and corporate governance measures.) ⚖️🚀🌳
Inside da activist camp, da frustration level getting pretty high, an plenny people saying dat change needed. “I been in da climate movement for 15 years, an I get a sense of desperation,” said Mark Raven from 350.org, one international climate activist group. “Da young activists, dey not happy wit how tings wen go before.”
On Wednesday, DealBook going look at why da activists feeling so bummed since Engine No. 1’s win. 📉🔍
NOW IN ENGLISH
😥🌏💡 Climate Activists, They Need to Rethink Their Strategy after Many Setbacks
After many setbacks, the climate activists who focus on shareholders only managed a few small victories in their attempt to push the big oil companies to adopt cleaner business strategies. So, what? Has the peak of oil activism already passed? 🛢️🤔
Exxon Mobil and Chevron are having their annual shareholder meetings on Wednesday. But it’s expected to be quite relaxed, because it’s all online. However, their European counterparts had tumultuous meetings last week. The environmental protesters stormed the stage at Shell’s meeting and clashed with the police wielding tear gas outside Total’s event. 🇪🇺💥🚔
But even with all this drama, the climate-focused shareholder activists are having to rethink their approach. This is two years after the small hedge fund, Engine No. 1, managed to achieve a major victory against Exxon. 🏆⛽️
Since then, the activists haven’t won more than half the votes in many important proxy votes. So, the industry bigwigs are having to reconsider their strategies. “In June, we’re going to reassess our strategy and think about what we’re going to do for the next few years,” said Mark van Baal, the founder of the shareholder activist group Follow This. 🔄🗓️
And all this is happening even though the major investors are supporting the activists. For example, Norway has a $1.4 trillion sovereign wealth fund, and they’ve promised to vote with the activists on climate issues at Exxon and Chevron. So, the tough part now is persuading investors to consider the long-term risk of climate change, instead of just focusing on the profits from the booming oil industry. Last year, as Mark van Baal put it, was “the year the empire fought back,” when the oil giants successfully argued that the energy crisis during a period of inflation, war, and a post-pandemic travel boom was more important than the climate crisis. 💰🆚🌍
So far, most of the demands from climate groups for the industry to reduce carbon emissions have only received about 20 percent approval from shareholders.
So, the activists are thinking about how to change their tactics. Here’s what Mr. Van Baal suggested:
1️⃣ Stay invested in the big oil companies so that they can continue to vote for climate resolutions. 2️⃣ Have a bigger impact by putting pressure on investment banks and insurance companies that fund oil and gas projects. 3️⃣ File more lawsuits, following a significant 2021 ruling in the Netherlands, where a judge ordered Shell to accelerate its shift towards cleaner energy and set stricter emissions targets. But there are drawbacks to this strategy: it’s expensive and could take years to get through court. And it’s less likely to work as well in the United States, where conservatives are pushing back against environmental, social, and corporate governance measures. ⚖️🚀🌳
Inside the activist community, frustration levels are rising, and many people are saying that change is needed. “I’ve been in the climate movement for 15 years, and I sense a feeling of desperation,” said Mark Raven from 350.org, an international climate activist group. “The young activists are not happy with how things have been handled in the past.”
On Wednesday, DealBook will examine why the activists have been feeling so disheartened since Engine No. 1’s win. 📉🔍
