Energy giant Royal Dutch Shell has been ordered by a court in the Hague to slash its greenhouse gas emissions and investors have forced Chevron and Exxon Mobil to do more on climate change.
The Dutch court ordered energy giant Royal Dutch Shell to cut its greenhouse gas emissions by 45 per cent by 2030.
The judgement is being seen as a landmark ruling that could trigger legal action against energy companies around the world.
Shell said it was "disappointed" and planned to appeal the ruling in a case that was filed by major environmental groups, including Friends of the Earth.
Judge Larisa Alwin ordered the company to reduce its carbon emissions by nearly half by 2030 from 2019 levels.
Earlier this year, Shell set out one of the sector's most ambitious climate strategies.
It said it planned to reduce carbon intensity by 20 per cent by 2030 and by 100 per cent by 2050 from 2016 levels.
But the court said that Shell's climate policy was "not concrete and is full of conditions … that's not enough."
'Stark warning for big oil'
Investors in the two biggest US oil companies in the US punished Exxon Mobil and Chevron for dragging their feet on taking action to reduce global warming.
Exxon Mobil lost at least two board seats to activist hedge fund, Engine No. 1, and just over two-thirds of Chevron investors supported a resolution to further reduce its greenhouse gas emissions.
Bess Joffe from the Church Commissioners for England, which manages the Church of England's investment fund, said executives were "being held to account by investors and lawmakers."
Exxon shareholders elected two directors from Engine No.1 and the activist fund could win a third seat with votes still being counted.
Investors also approved measures calling for annual reports on climate change and grassroots lobbying efforts.
Exxon said vote results for five nominees were too close to call.
After the meeting, CEO Darren Woods said Exxon would listen to investors' demands to do more in the fight against climate change.
"We are well positioned to respond," he said.
Sixty-one per cent of Chevron shareholders supported a resolution filed by Follow This calling on the company to set targets to reduce emissions, including those of their customers.
A resolution calling for a report on the business impact of reaching net zero emissions by 2050 was supported by 48 per cent of investors.
'Nothing short of extraordinary'
Dan Gocher from investor advisory group, the Australasian Centre for Corporate Responsibility said it had been an extraordinary 24 hours which put the oil and gas industry on notice.
"Chevron, Exxon Mobil and Shell are three of Australia's largest oil and gas producers, and therefore three of our largest carbon polluters.
"All three companies will now be under enormous pressure from both shareholders and the wider public to cut emissions, and cut them fast."
The developments increase pressure on the world's major energy firms to transform their businesses and move away from the use of fossil fuels.
"The question for oil companies is when and how much" do they reduce oil and gas production in response to investor and social concerns, said Charles Elson, a professor of corporate governance at the University of Delaware.
A report earlier this month by the International Energy Agency said immediate action was needed to meet global climate targets and there should be no new investments in coal, oil and gas.
ABC/Reuters
