Chevron Corp (CVX.N) is preparing to defend itself against a potential activist challenge and met with representatives of the pro-environment fund which won three board seats at Exxon Mobil (XOM.N) in June, the Wall Street Journal reported on Friday, citing people familiar with the matter.
The oil major shared some of its plans to cut carbon emissions during talks with the Engine No. 1 fund, the report said. 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 lay out more carbon-reduction targets and is also considering adding a new director with environmental expertise to its board, the Journal reported. Its shareholders had voted in favor of a proposal to cut emissions in May.
The fund’s success against Exxon spurred Chevron to communicate its energy-transition plans, the Journal reported. Engine No.1 declined to comment and Chevron did not immediately respond to a Reuters request for comment.
Engine No.1 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 purchase Chevron shares, 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 seeks to slash greenhouse gas emissions and work towards reducing the sector’s carbon footprint.
Chevron’s shares were up 0.4% in premarket trade.