Shareholder revolt looms for Cenovus and Enbridge over fossil fuels
Shareholders at energy firms' Cenovus and Enbridge plan to vote on proposals regarding the two companies' lobbying practices, it has emerged.
Both companies have made a net zero commitment, but a group called Investors for Paris Compliance (I4PC) claims the companies are actively advocating against climate policy and in favour of fossil fuel expansion, thereby increasing emissions.
"You can't just say you are committed to net zero then lobby governments against it," said Duncan Kenyon, director of Corporate Engagement at I4PC.
"Investors are not fond of inconsistencies and will get a chance to express their opinion through their votes," Kenyon warned.
The Cenovus resolution highlights the company's opposition to the proposed federal emissions cap for the oil and gas sector, both via its own representations and via its membership in industry associations and other lobby groups.
The Enbridge resolution, meanwhile, details the company's extensive use of political front groups in the U.S. and donations to pro-fossil fuel politicians like Joe Manchin.
As a result, Enbridge faces significant political risk, Kenyon said, singling out strong opposition by the Michigan government and extensive civil disobedience protests in Minnesota.
The resolutions are in line with a recent report on lobbying in the Canadian oil and gas sector, published by InfluenceMap, an information provider to the Climate Action 100+ investor initiative.
In its company assessments, InfluenceMap awards Cenovus a D- and Enbridge a D for their lobbying practices.
Shareholders will vote on the proposals in the lead-up to the company AGMs in early May.