Enbridge part of the "NET- ZERO Crowd" Within the energy sector, oil sands giant Imperial Oil Ltd. (IMO) lost 40 cents to $29.45 on 1.86 million shares. It is less than thrilled with an institutional shareholder's proposal that the company should commit to net zero emissions by 2050. The proposal, and Imperial's recommendation to reject it, can be found in the recent information circular for the annual shareholder meeting on May 4.
As outlined in the circular, the shareholder, Aequeo Shareholder Engagement Services -- on behalf of Batirente, a Quebec group retirement system -- feels that Imperial's current emissions target does not go far enough. The company has previously vowed to cut its emissions by 10 per cent by 2023 (relative to 2016). Yet Imperial "has not committed to longer-term targets in line with [the Paris Agreement]," chided Batirente. Twenty-eight countries, including Canada, have adopted net-zero-by-2050 targets, as have a handful of energy companies, including Cenovus Energy Inc. (CVE: $9.79), Enbridge Inc. (ENB: $45.57), ConocoPhillips and France's Total. "Investors increasingly favour companies with energy transition strategies," opined Batirente. It called on Imperial to join the net-zero crowd.