Investors in French oil major TotalEnergies (LON: TTE) will call for the division of the role of CEO and chairperson of the company, claiming this could speed up its transition towards clean energy.
Reuters reported the development, citing a resolution proposed at the company’s annual general meeting on the 24th of May.
“The separation of functions could improve dialogue with the board… on climate transition issues and ensure a better balance of power at a time when many investors are of the opinion that TotalEnergies’ transition strategy is not ambitious enough,” the agency quoted the resolution as saying.
The proposal will be made by 19 international investors, together holding around 20 million shares in the company. They are joined by Swiss pension fund investor group Ethos Foundation and the French Sustainable Investment Forum (FIR).
The company has been headed by Patrick Pouyanne for nearly a decade as he holds both roles, using the power to push a strategy of increasing oil and gas output while also transitioning towards renewables.
However, despite this drive towards clean energy, the company does not expect to see a major drop in emissions from its products until after 2030. Last year’s AGM saw 30% of TotalEnergies investors vote to make faster emissions cuts against the company’s recommendation.
The upcoming AGM will see Mr Pouyanne up for another three years heading the company.
The TotalEnergies CEO and chairman previously claimed that the company was “the most profitable” major of 2023 while implementing his energy transition strategy.
However, weak oil and gas prices and shrinking margins cut the company’s earnings for the fourth quarter of 2023.
Mr Pouyanne was bullish, however, pushing up the company’s dividend and continuing a programme of share buybacks.
Reuters quoted a TotalEnergies spokesperson as saying: “In France the governance of the company is by law a competence of the Board…and the Board is likely not to consider as receivable such a resolution.”
