Chevron accolades for activist challenge; meets reps for engine #1 – WSJ

The Chevron Pascagoula Refinery is pictured in Pascagoula, Mississippi, U.S., September 4, 2018. REUTERS/Jonathan Bachman

Sept 3 (Reuters) – Chevron Corp (CVX.N) is preparing to defend itself against a possible militant challenge and has met with representatives of the pro-environment fund which has won three seats on the board of directors of Exxon Mobil (XOM. N) in June, The Wall Street Journal reported Friday, citing people familiar with the matter.

The oil major shared some of its plans to reduce carbon emissions during discussions with the Engine No. 1 fund, according to the report. The talks were described as cordial and the fund gave no indication that it would pursue a campaign against Chevron, the report added. (https://on.wsj.com/3zLUSoM)

Chevron plans to set more carbon reduction goals and is also considering adding a new director with environmental expertise to its board, the Journal reported. Its shareholders had voted in favor of an emissions reduction proposal in May. Read more

The fund’s success against Exxon prompted Chevron to communicate its energy transition plans, the Journal reported. Engine #1 declined to comment.

Chevron engages regularly with its shareholders and looks forward to discussing its low-carbon future with them later this month, a company spokesperson told Reuters.

The No. 1 engine held a stake worth about $600,000 in Chevron, as of June 30, according to regulatory filings.

The fund has been in touch with other investors about organizing a group to buy Chevron stock, hinting at interest in launching a second major campaign, according to the report.

Energy companies are under pressure from the Biden administration’s climate change agenda, which aims to reduce greenhouse gas emissions and reduce the sector’s carbon footprint.

Shares of Chevron were down 0.15% at $97.57 in afternoon trading.

Reporting by Rithika Krishna in Bengaluru; Editing by Shailesh Kuber

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