Coutts, and other shareholders, say they have prompted LyondellBasell to commit to achieve net zero by 2050.
Coutts says the action they’re taking follows concerns raised by shareholders including launching a global renewable energy strategy, using lower-emitting fuels and phasing out coal.
This shareholder action was driven as part of Climate Action 100+ and Coutts was part of a group of investors that put climate change on the agenda of LyondellBasell’s 2021 annual meeting working with their voting and engagement partner EOS at Federated Hermes.
The group raised concerns about the company’s existing strategy and performance in managing climate-related risks and opportunities. They also highlighted the importance of setting ambitious targets consistent with the United Nations’ Paris Agreement – an international treaty on climate change.
LyondellBasell says it will accelerate its efforts towards a net zero commitment. In September it laid out a plan for achieving net zero emissions across its global operations by 2050, including short- and medium-term targets aligned with the Paris Agreement. The strategy includes the company’s commitment to achieving an absolute reduction of 30% in direct and indirect emissions by 2030.
Leslie Gent, Head of Responsible Investing at Coutts, said: “This is a great example of shareholder power at work. As a responsible investor and B Corp, we want to ensure the companies in which we have a stake have the same commitments to a low carbon future as we do.