TOT TOTAL SE

By Maitane Sardon

A group of investors representing 1.35% of French oil major Total SA's capital filed a resolution at the company on Wednesday asking it to set absolute emissions-reduction targets aligned with the Paris Agreement.

The resolution, led by French asset manager Meeschaert and co-filed by 10 other investors, asks Total to set targets that are absolute instead of only based on the carbon intensity of its products. Company targets aimed at reducing carbon intensity can lead to an increase in carbon emissions if profit or sales go up, according to climate scientists.

The investors want Total to design a medium- and long-term action plan to reduce carbon-dioxide emissions that are the result of its activities and the use of its products, as well as report on its progress. If accepted by the board, the resolution will be on the ballot at the company's general assembly on May 29.

"We have an obligation to take climate risk into account when managing our portfolios," the investors said. "We are concerned about the risk of depreciation of the assets of Total, whose valuation and economic model strongly depend on the fossil-fuel reserves whose exploitation it manages."

Nonprofits promoting responsible investing welcomed the resolution and said the investment community is increasingly recognizing the need to curb fossil-fuel production to keep the rise in global temperatures below 2 degrees Celsius.

"Their resolution... is a clear sign that half-baked commitments by companies--in the form of ridiculously meager intensity targets--won't cut it anymore," said Jeanne Martin, campaign manager at U.K. nonprofit ShareAction.

Write to Maitane Sardon at maitane.sardon@wsj.com

(END) Dow Jones Newswires

April 15, 2020 09:43 ET (13:43 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.