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Energy companies can expect more climate scrutiny, Morgan Stanley says

Published 08/10/2017, 12:28 PM
© Reuters.  Energy companies can expect more climate scrutiny, Morgan Stanley says
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  • Morgan Stanley (NYSE:MS) analysts note that U.S. oil and gas companies last year saw a record number of climate-related shareholder proposals while Europe did not see a big uptick, which the firm thinks is because Europe companies already have better disclosure.
  • Stanley says 2018 could see even more climate change resolutions for oil and gas company governance, especially related to methane, as shareholder support for methane proposals has climbed on average to 41% this year from 27% in 2015.
  • The firm says the two U.S. oil and gas producers - Exxon (NYSE:XOM) and Occidental Petro (NYSE:OXY) - without environment-related executive compensation metrics also faced strongest climate change proposal votes and lowest say-on-pay approvals, while all eight North American companies except Chevron (NYSE:CVX) with exec comp plans including some climate metrics did not face climate change shareholder resolution votes higher than 25% last year.
  • Now read: Exxon Mobil - Long Term Immense Cash Flow Generation


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