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By Ishika Dangayach, 4:30 PM ET
Chevron Corp. is preparing to defend itself against a potential challenge from activist investors similar to the one that roiled Exxon Mobil Corp. earlier this year, WSJ reported
Chevron officials recently met with representatives of Engine No. 1, the investment company that led the successful battle to obtain three seats on Exxon's board.
The company discussed some of its efforts to decrease carbon emissions during the conversations, which were described as cordial, and Engine No. 1 made no indication that it would launch a campaign against Chevron, the report said.
Chevron has been working on its energy transition plan since the outbreak of the pandemic. It expects to unveil more ambitious carbon-reduction objectives in the coming weeks, according to the report.
The business is also considering adding a new director with environmental experience to its board.
The success of Engine No. 1 has reverberated across the energy industry, prompting Exxon's competitors to examine the environmental effect of their strategy, leadership, and board composition.
The developments come as the Biden administration focuses more on how companies adapt to climate-related risks.
Chevron Chief Executive Mike Wirth has branded the company’s strategy as “higher returns, lower carbon” Journal reported.
Chevron's carbon obligations will fall short of a net-zero vow to decrease emissions.
Earlier this year, European oil giants, including RoyalDutch Shell Plc and BP Plc announced a public pledge to decrease emissions from their operations and assets that they own but do not operate to zero. Shell has also set a net-zero emission objective for its products.
Exxon Mobil Corp. is considering pledging to decrease its net carbon emissions to zero by 2050.
According to regulatory records, Engine No.1 had a $600,000 interest in Chevron as of June 30.
The fund has been in contact with other investors about assembling a group to acquire Chevron shares, indicating an interest in launching a second big campaign, the report added.
Source: WSJ