Resolved: Shareholders request that the Board produce a report, at reasonable cost and omitting proprietary information, outlining whether and how Cenovus is aligning its direct and indirect lobbying and public policy advocacy with its net zero goal. The report should be repeated periodically and disclose evaluation criteria and external stakeholders consulted, if any.
Cenovus is committed to net zero by 2050 and to support Canada’s Paris Agreement commitments.
Last year, leading investors released the Global Standard on Corporate Climate Lobbying to help investors assess whether companies’ lobbying, and political engagement are consistent with climate progress. In addition, more than twenty shareholder resolutions were filed last year seeking disclosure that a corporation’s climate lobbying is aligned with the Paris Agreement.
Cenovus’ statement on Advocacy and memberships says that the company does not make political contributions and that it complies with lobbying disclosure laws. It also discloses membership in advocacy organizations like the Canadian Association of Petroleum Producers (CAPP), Canada Action, and the Pathways Alliance. It does not disclose the company’s commitment to net zero or its support of Canada’s commitments to the Paris Agreement, nor commit to aligning its lobbying accordingly.
Cenovus has spoken out against the Canadian Government’s plans to reduce emissions with an oil and gas emissions cap. CAPP, Canada Action/Oilsands Action and the Pathways Alliance have all made public efforts to oppose the federal government’s cap on oil and gas emissions.
The federal lobby registry shows Cenovus, CAPP and Pathways Alliance meeting frequently with federal officials, but there is no disclosure by Cenovus regarding whether these representations sought to oppose climate action, as its public statements suggest.
In SHARE’s climate lobbying benchmark of Canadian oil and gas companies, Cenovus scores an average 29% on a range of indicators including transparency and alignment on climate.
InfluenceMap, which serves the CA100+ benchmark, scored Cenovus a D+, saying that “Cenovus does not appear to be supportive of policies to respond to climate change.” InfluenceMap also ranks CAPP as the fifth most “negative and influential” industry association in the world on climate.
Cenovus’ direct and indirect lobbying – through membership in CAPP, the Pathways Alliance and Canada Action – is opaque and may be inconsistent with its net zero commitment and its stated support of Canada’s commitments under the Paris Agreement. This lack of disclosure and potential inconsistency is a governance risk that merits due consideration and oversight by the Cenovus Board.
We respectfully request that shareholders vote FOR this proposal.
 https://lobbycanada.gc.ca/app/secure/ocl/lrs/do/vwRg?cno=260442®Id=929389&blnk=1 and https://lobbycanada.gc.ca/app/secure/ocl/lrs/do/clntSmmry?clientOrgCorpNumber=226641&sMdKy=1672944913522 and https://lobbycanada.gc.ca/app/secure/ocl/lrs/do/clntSmmrySrch?registrationText=pathways+alliance&searchType=Search