Companies’ net zero alignment in question
Shareholders at Cenovus and Enbridge will vote on proposals regarding their lobbying practices filed by Investors for Paris Compliance (I4PC). Both companies have made a net zero commitment, but evidence filed in the proposals shows the companies advocating against climate policy and in favour of fossil fuel expansion which would increase emissions.
“You can’t just say you are committed to net zero then lobby governments against it,” said Duncan Kenyon, Director of Corporate Engagement at I4PC. “Investors are not fond of inconsistencies and will get a chance to express their opinion through their votes.”
The Cenovus resolution highlights the company’s opposition to the proposed federal emissions cap for the oil and gas sector, both via its own representations and via its membership in industry associations and other lobby groups.
The Enbridge resolution details the company’s extensive use of political front groups in the U.S. and donations to pro-fossil fuel politicians like Joe Manchin. As a result, Enbridge faces significant political risk, such as strong opposition by the Michigan government and extensive civil disobedience protests in Minnesota.
The resolutions are consistent with a major new report on lobbying by the Canadian oil and gas sector by InfluenceMap, an information provider to the Climate Action 100+ investor initiative. In its company assessments, InfluenceMap awards Cenovus a D- and Enbridge a D for their lobbying practices.
Shareholders will vote on the proposals in the lead up to the company AGMs in early May.
For more information contact Duncan Kenyon at duncan [at] investors4paris [dot] com
Below are the resolutions as filed. Here is our rebuttal of Enbridge’s response in its proxy circular. Cenovus has yet to release its proxy circular.