CENOVUS ENERGY INC. | Report on lobbying in line with net zero GHG target at CENOVUS ENERGY INC.

Status
Voted
AGM date
Previous AGM date
Proposal number
5
Resolution details
Company ticker
CVE
Lead filer
Investors for Paris Compliance
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Lobbying / political engagement
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Energy
Company HQ country
Canada
Resolved clause
Shareholders request that the Board produce a report, at reasonable cost and omitting proprietary information, outlining whether and how Cenovus is aligning its direct and indirect lobbying and public policy advocacy with its net zero goal. The report should be repeated periodically and disclose evaluation criteria and external stakeholders consulted, if any.
Supporting statement
Cenovus is committed to net zero by 2050[1] and to support Canada’s Paris Agreement commitments.[2]

Last year, leading investors released the Global Standard on Corporate Climate Lobbying[3] to help investors assess whether companies’ lobbying, and political engagement are consistent with climate progress. In addition, more than twenty shareholder resolutions were filed last year seeking disclosure that a corporation’s climate lobbying is aligned with the Paris Agreement.[4]

Cenovus’ statement on Advocacy and memberships[5] says that the company does not make political contributions and that it complies with lobbying disclosure laws. It also discloses membership in advocacy organizations like the Canadian Association of Petroleum Producers (CAPP), Canada Action, and the Pathways Alliance. It does not disclose the company’s commitment to net zero or its support of Canada’s commitments to the Paris Agreement, nor commit to aligning its lobbying accordingly.

Cenovus has spoken out against the Canadian Government’s plans to reduce emissions with an oil and gas emissions cap.[6] CAPP[7], Canada Action/Oilsands Action and the Pathways Alliance have all made public efforts to oppose the federal government’s cap on oil and gas emissions.[8]

The federal lobby registry shows Cenovus, CAPP and Pathways Alliance meeting frequently with federal officials,[9] but there is no disclosure by Cenovus regarding whether these representations sought to oppose climate action, as its public statements suggest.

In SHARE’s climate lobbying benchmark of Canadian oil and gas companies, Cenovus scores an average 29% on a range of indicators including transparency and alignment on climate.[10]

InfluenceMap, which serves the CA100+ benchmark, scored Cenovus a D+, saying that “Cenovus does not appear to be supportive of policies to respond to climate change.”[11] InfluenceMap also ranks CAPP as the fifth most “negative and influential” industry association in the world on climate.[12]

Cenovus’ direct and indirect lobbying – through membership in CAPP, the Pathways Alliance and Canada Action – is opaque and may be inconsistent with its net zero commitment and its stated support of Canada’s commitments under the Paris Agreement. This lack of disclosure and potential inconsistency is a governance risk that merits due consideration and oversight by the Cenovus Board.

We respectfully request that shareholders vote FOR this proposal.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.