annual review indst 2024 public - Flipbook - Side 16
16
EOS
Progress of environmental objectives for selected CA100+ companies engaged by EOS, 2024
Company Name
EOS Sector
Participation 0
Air Liquide
Chemicals
Co-lead
LyondellBasell Industries
Chemicals
Co-lead
Danone
Consumer Goods
Co-lead
Lockheed Martin
Industrials
Co-lead
Siemens Energy
Industrials
Co-lead
Holcim
Mining & Materials
Support
Anhui Conch Cement Co
Mining & Materials
Support
CRH
Mining & Materials
Support
POSCO Holdings
Mining & Materials
Co-lead
Rio Tinto
Mining & Materials
Support
thyssenkrupp
Mining & Materials
Support
TotalEnergies
Oil & Gas
Co-lead
Marathon Petroleum
Oil & Gas
Support
Valero Energy
Oil & Gas
Support
Bayer
Pharma & Healthcare
Support
Carrefour
Retail & Consumer Services
Support
Caterpillar
Transportation
Co-lead
Engie
Utilities
Support
Fortum
Utilities
Support
1
2
3
4
5
6
Objectives engaged
Number of objectives
with progress
Source: EOS data
activities, the benchmark sees much higher numbers
investing in climate solutions. Some 38% of companies
assessed disclose the stated value of their capital
expenditure towards climate solutions, with 37% of
companies saying they intend to allocate capital
expenditure to climate solutions in the future.
As studies suggest that the greatest impediments to
achieving the 1.5°C-aligned goals of the Paris Agreement
are now political barriers rather than technological ones,
it is imperative that companies outline policy dependencies
and support policy frameworks that are supportive of
companies’ transitions.3
Since 2020, we have been co-leading
engagement to ensure the alignment of
TotalEnergies’ capital expenditure with
the Paris Agreement’s goals.
Through EOS’s engagement across these initiatives in 2024,
we continued to seek progress where companies lagged best
practice, while encouraging efforts where progress had been
made. We also elevated our engagement on areas of
emerging best practice, such as the due consideration of
material climate-related risks and opportunities in financial
statements, and the financial resilience of any significant
capital expenditure.
different segments, investors may now improve their
understanding of the company’s financial exposure to
transition risks.
Following engagement on Air Liquide’s claims about public
policy dependencies getting in the way of accelerating
decarbonisation capital expenditure, we also sought clarity
over the company’s advocacy efforts to overcome these
hurdles. We obtained reassurance over these activities
through the company’s publication of its public policy
positions and a detailed review of the alignment of its industry
associations’ actions with these positions.
Since 2020, we have been co-leading engagement to ensure
the alignment of TotalEnergies’ capital expenditure with the
Paris Agreement’s goals. After meeting with and writing to the
chair/CEO on multiple occasions over several years, we were
pleased to welcome the company’s increased focus on
ensuring portfolio resilience through capital expenditure
guardrails. In 2024, we welcomed improved disclosure on
pipeline economics, the evidencing of the low break-even
point of the existing portfolio, and the company’s
commitment for pipeline projects’ production costs to sit
below the $20 per barrel mark.
Making progress through CA100+
At Air Liquide, we have co-led the CA100+ engagement for
several years. In 2024, it responded to our requests that its
financial statements demonstrate the consideration of
material climate-related risks and opportunities. Through a
detailed discussion of the material climate risks facing
3
Feasibility of peak temperature targets in light of institutional constraints | Nature Climate Change.
