In today’s Electek Green Energy Brief (EGEB):

  • ExxonMobil and Chevron face shareholder rebellions due to a lack of an emissions reduction strategy.
  • Here is the latest monthly report on electric power in the United States and what renewables should do.
  • UnderstandingSolar is a free service that connects you with the top rated solar installers in your area for personalized solar estimates. Tesla now offers price matching, so it’s important to research the best quotes. Click here to find out more and get your quotes. – * a d.

ExxonMobil and Chevron’s bad day

Update, June 3: ExxonMobil shareholders have elected a third director appointed by activist hedge fund Engine No. 1 to the oil giant’s board of directors, the company said in a statement yesterday. Alexander Karsner, strategist at Alphabet Inc, owner of Google, won the fund’s third seat out of 12 members of its board of directors. Engine No.1 nominated four candidates, but the fourth was not elected.

US oil giants ExxonMobil and Chevron suffered backlash from their shareholders yesterday from activists and institutional investors for their inability to put in place viable emission reduction strategies. the New York Times writes that “Analysts couldn’t recall another time Exxon management lost a vote against the directors chosen by the company.”

Hedge fund activists Engine n ° 1 has successfully replaced two Exxon board members with his own nominees, and a vote on a third, Alexander Karsner, senior strategist at X, is “not yet determined”.

Engine No. 1 “owns a stake worth just $ 54 million in a company with a market capitalization of $ 248 billion. Exxon shares rose 0.7% to $ 58.64 after the vote count on Wednesday, ”reports the Financial Time.

BlackRock, the world’s largest asset manager and Exxon’s second largest shareholder with a 6.7% stake, supported the No.1 engine campaign. The same goes for Legal & General Investment Management, which owns investment stocks worth nearly $ 1 billion and is among Exxon’s top 20 shareholders.

Chris James, founder of Engine No. 1, said in an interview [via the NYT]:

It’s not really a question of ideology, it’s a question of economics.

And the economy is what has led to the adoption of some of the alternative fuel sources over fossil fuels. We want there to be an acceptance of change.

So what can two or three board members do out of a total of 12? Their presence strengthens the position of investment firms in favor of climate change. President of the Environmental Defense Fund Fred Krupp written:

These are big asset managers and other influential investors stepping up, making their voices heard and walking, connecting the dots between their climate rhetoric and their actions.

At Chevron, a majority of shareholders voted 61% in favor of a proposal by the Dutch campaign group Follow this forcing the oil giant to reduce its Scope 3 emissions – the result of activities from assets not owned or controlled by the reporting organization, but which the organization has an indirect impact on its value chain.

Mark van Baal, co-founder of Follow This, mentionned:

Institutional investors understand that no investment is safe in a global economy ravaged by devastating climate change.

US Electric Power Report

According to new data from the US Energy Information Administration “Monthly electrical energy”, Net solar and wind power generation in the United States has increased by 24.3% (31,357 MWh) and 10.5% (96,658 MWh), respectively, of total electric power since the start of the year, for january to march 2021 and 2020.

Overall, renewable sources other than hydropower are up 10.8% (136,262 MWh). This includes wind, solar, wood, other biomass and geothermal energy. Conventional hydropower is down 7.5% (69,646 MWh) and hydropower pumping is up 11.1% (-1,085 MWh).

On the fossil fuel side, coal is up 34.8% (231,675 MWh) and natural gas is down 10.8% (342,372 MWh). This is explained by the rise in natural gas prices due to the growth in exports of liquefied natural gas and the increase in domestic consumption of natural gas.

In addition, in March, S&P Global Platts reported:

The EIA said the “recent extreme cold weather across much of the country has contributed to an increase in the use of coal for power generation,” but added that “the increasing supply for generation in the Coal will be met in part by levies on on-site inventory at power plants.

Going forward, renewables are expected to account for 21.2% of electricity generation in the United States in 2021 and 22.6% in 2022, up from 19.7% in 2020. Coal is expected to represent 22.6% of electricity production in 2021 and 22.8% in 2022, up 19.9% ​​generated in 2020. Electricity production from natural gas is estimated at 35.8% in 2021 and 34.9 % in 2022, compared to 39.2% in 2020.

Globally, coal is expected to flatten out by 2025 and renewables will overtake fossil fuels, according to the International Energy Agency.

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