Shareholders request that Imperial Oil adopt a midterm corporate-wide target to reduce absolute greenhouse gas emissions (scope 1 and 2). Such a target should be announced before the end of January 2024.
• Imperial Oil has a company-wide goal to achieve net zero by 2050 and to reduce emissions intensity for operated oil sands by 30% by 2030 (relative to 2016 levels), the company has not set an absolute midterm emissions target.
• In its 2022 management proxy circular, Imperial committed “to work towards establishing a midterm absolute greenhouse gas emissions reduction goal”.
• Imperial respects and supports the goals of the Paris Agreement’s to “substantially reduce global greenhouse gas (GHG) emissions to limit the global temperature increase in this century to 2 degrees Celsius while pursuing efforts to limit the increase even further to 1.5 degrees”.1
• Scientists expect significantly greater climate-related risks if global warming increases by 2°C compared to 1.5°C in terms of impacts on oceans, ecosystems, health, livelihoods, food security, water supply, human security, and economic growth, according to the Intergovernmental Panel on Climate Change’s (IPCC) Special Report on Global Warming of 1.5°C.2
• The IPCC finds that to remain on a 1.5°C pathway, global net anthropogenic CO2 emissions must decline by about 45% from 2010 levels by 2030.
• According to a UN High‐Level Expert Group, companies must disclose net zero transition plans which must include short, medium and long-term absolute emission reduction targets.3
• For companies to demonstrate credible climate ambition, they must align with the goal of holding global temperature rise to 1.5°C and set targets to halve emissions by 2030..., according to the We Mean Business Coalition4 (an association which includes the World Business Council for Sustainable Development5).
• Absolute GHG reduction targets have been adopted by companies such as Cenovus (35% by 2035 from 2019 levels), CNRL (40% by 2035 from 2020 levels) and Suncor (10 megatonnes per year by 2030).
• Most Investors now recognize that “climate change presents a major threat to long-term growth and prosperity, and that there is an urgent need to accelerate the transition towards a net-zero economy.”6 Climate Action 100+, a coalition of 700 investors (responsible for over $68 trillion in assets under management) assess companies on their transition plans, and expect companies to set corporate-wide absolute reduction targets in the short, medium and long term.
• Scope 1 greenhouse gas emissions refer to direct emissions from sources that are owned or controlled by the company. Scope 2 refers to indirect emissions from consumption of purchased electricity, heat or steam.