The Ongoing Battle Between Environmentalists and TotalEnergies Shareholders

Most evenings in Paris, the Salle Pleyel concert hall hosts music stars. But in recent times, it has also become the site of a less uplifting annual spectacle: the showdown between environmentalists and shareholders of the French oil company TotalEnergies.

Activists vs. Shareholders: A Clash of Visions

Last month, police sprayed tear gas on activists as they attempted to stage a sit-in at the annual meeting of TotalEnergies’ investors. While TotalEnergies’ small shareholders managed to enter, albeit under a deluge of chants, it is evident that these two camps seem to be at odds more than ever. The clash between environmental concerns and shareholders’ interests is becoming increasingly pronounced.

Looking at the exchange, it is surprising to see such a short focus on climate concerns. However, the protesters are well aware of what gets attention on social media, and clips of these confrontations do well online. Similar confrontations have occurred at shareholder meetings of other oil giants like Shell and BP in Britain. [1]

Jean-Michel Gauthier, a professor at HEC business school who previously worked at TotalEnergies, points out the lack of interest in dialogue from both parties involved. It seems that they have become entrenched in their opposing positions, making it difficult to find common ground. The activists are sounding the alarm and demanding an accelerated energy transition, while TotalEnergies’ CEO, Patrick Pouyanné, holds an ultra-rational vision of a world still dependent on oil, arguing that a shift towards cleaner energy will take time.

The Changing Attitudes Towards Activists

Interestingly, there seems to be a growing warmth towards environmental activists from politicians. Prime Minister Élisabeth Borne acknowledges the role of activists in sounding the alarm and calling for an accelerated energy transition. [2]

This contrast in attitudes can also be seen in the government’s response to recent mass protests against President Emmanuel Macron’s pension reforms. While the government has taken a harsh stance towards those protesters, they seem to be more receptive to the concerns raised by environmental activists. This highlights the increasing pressure on the fossil fuel industry and the need for companies like TotalEnergies to justify the pace of their green transitions.

TotalEnergies’ Efforts to Transition

TotalEnergies has made significant investments in renewable energy, including wind and solar farms. In fact, the company increased its renewable energy investment budget to $5 billion this year, out of a total capital expenditure of $16-18 billion, up from $4 billion in 2022. Despite these efforts, TotalEnergies has not received the same level of enthusiasm from investors as its peers in the United States, who have been less inclined to transition away from oil and gas. [3]

This lack of investor support is puzzling. From an equity perspective, TotalEnergies should be trading at the level of its US peers, yet it continues to face opposition and criticism from activists. According to Gauthier, there seems to be a disconnect between the company’s actions and the perception of its shareholders and the public. [3]

In response to this criticism, TotalEnergies is starting to fight back. The company is suing Greenpeace in France for a symbolic €1 in damages, claiming that a report on its emissions published by the environmental organization is misleading. [4]

The Ugandan Pipeline Controversy

One of the recurring triggers for protests against TotalEnergies is its involvement in the $10 billion Lake Albert oil project and the related pipeline that will pass through Uganda and Tanzania. Environmental activists see this as a red line and advocate for an end to new oil developments. [5]

Anne-Fleur Goll, a 26-year-old activist who also works in climate consultancy, played a significant role in organizing an open letter to TotalEnergies from over 800 students and graduates. The letter expressed their refusal to work for the company, particularly due to its involvement in the Ugandan pipeline. Goll describes TotalEnergies’ response as defensive and condescending, which further fuels the tensions between the company and environmental activists. [6]

The Need for Dialogue

As the divide between environmentalists and TotalEnergies shareholders continues to widen, it is evident that more conversation and dialogue are needed. The confrontations at shareholders’ meetings may garner attention, but they do little to bridge the gap between these two camps. It is essential for all parties involved to come together and find common ground for the benefit of the planet and future generations. [7]

Expanding Perspectives: The Role of Dialogue in the Energy Transition

The ongoing battle between environmentalists and TotalEnergies shareholders highlights the challenges faced by companies in the fossil fuel industry as they navigate the transition to cleaner energy sources. While activists are pushing for an accelerated energy transition, shareholders, particularly those of TotalEnergies, may have concerns about the financial impact of such a shift.

It is crucial to recognize that the transition away from fossil fuels cannot happen overnight. The world is still heavily dependent on oil and gas, and a sudden halt to these industries would have wide-ranging economic and social consequences. However, this does not mean that companies should remain complacent and resist change.

TotalEnergies’ CEO, Patrick Pouyanné, has expressed his vision of a world that still relies on oil, arguing that a shift towards cleaner energy will take time. While his perspective is understandable, it is important to consider the urgency of the climate crisis. The need for alternative energy sources is becoming increasingly critical, and companies like TotalEnergies must adapt to meet these challenges.

The confrontations at shareholder meetings and the growing pressure from activists serve as a wake-up call for TotalEnergies and other oil companies. The public’s expectation for more sustainable practices and the increasing focus on climate change require companies to rethink their strategies and invest in renewable energy sources.

Investors play a crucial role in driving the transition to cleaner energy. While TotalEnergies has made significant investments in renewable energy, these efforts have not been met with the same level of enthusiasm as their US peers. Investors need to recognize the long-term benefits of a sustainable energy transition and support companies that are actively working towards this goal.

Dialogue between environmentalists, shareholders, and companies like TotalEnergies is essential. It is through open and constructive conversation that innovative solutions can be developed and implemented. Companies should engage with activists and listen to their concerns, rather than dismissing them. Similarly, activists should strive to understand the challenges faced by companies and work towards finding feasible solutions.

The ongoing legal battle between TotalEnergies and Greenpeace exemplifies the need for greater understanding and dialogue. By addressing concerns and engaging in meaningful conversation, companies can demonstrate their commitment to transparency and accountability while working towards a more sustainable future.

In conclusion, the battle between environmentalists and TotalEnergies shareholders is a microcosm of the larger challenges faced by the fossil fuel industry. It is clear that a shift towards cleaner energy sources is necessary, but the transition must be managed carefully to mitigate the potential economic and social consequences. Dialogue and collaboration between all stakeholders are vital in navigating this transition and ensuring a sustainable future for generations to come.

Summary

The clash between environmentalists and TotalEnergies shareholders is becoming increasingly pronounced. Last month, activists were met with tear gas as they protested at the annual investor meeting. TotalEnergies’ CEO, Patrick Pouyanné, holds a vision of a world still dependent on oil, while activists demand an accelerated energy transition. The government’s contrasting attitudes towards environmental activists and other protesters highlight the growing pressure on the fossil fuel industry. TotalEnergies’ efforts to transition to renewable energy have not received the same level of investor support as their US counterparts. The company is now suing Greenpeace for a misleading report on its emissions. Activists are particularly concerned about TotalEnergies’ involvement in the Ugandan pipeline project. The ongoing battle between these two parties emphasizes the need for dialogue and collaboration to navigate the energy transition.

Keywords: TotalEnergies, environmentalists, shareholders, energy transition, activists, fossil fuel industry, renewable energy, dialogue, climate change

References

[1] Source: FT.com

[2] Source: FT.com

[3] Source: FT.com

[4] Source: FT.com

[5] Source: FT.com

[6] Source: FT.com

[7] Source: FT.com

Most evenings in Paris, the Salle Pleyel concert hall hosts music stars. But in recent times it has also become the site of a less uplifting annual spectacle: the showdown between environmentalists and shareholders of the French oil company TotalEnergies.

Last month, police sprayed tear gas on activists as they attempted to stage a sit-in at the annual meeting of investors. Total’s small shareholders have managed to enter, after being blocked last year, but under a deluge of chants. “I don’t care,” growled one shareholder, in response to a protester’s rant about the need to save the planet.

Looking at the exchange, these two camps seem to be at odds more than ever. Seeing such a short focus on climate concerns is surprising. But protesters also know what gets clicks. Clips of those meetings do well on social media, and this face-to-face followed breaks at other shareholder meetings, including those of Shell and BP in Britain.

“We are faced with two parties that are not interested in dialogue,” says Jean-Michel Gauthier, a professor at HEC business school who worked at Total twenty years ago.

“Activists are living up to their role, sounding the alarm and saying [the energy transition] it must be accelerated,” Prime Minister Élisabeth Borne told reporters.

This warmth towards environmental activists contrasts with the government’s attitude towards protesters who participated in the recent mass protests against President Emmanuel Macron’s pension reforms.

But it also underlines the growing pressure on the fossil fuel industry. Companies like Total are having an increasingly difficult time justifying the pace of their green transitions.

Total’s CEO, Patrick Pouyanné, is notoriously outspoken. He struggles to digest how his ultra-rational vision of a world still dependent on oil, which will need time to move towards cleaner energy, is not shared by activists.

True to form on the morning of the shareholders’ meeting, he bemoaned the “whiny allegations of greenwashing” in a speech. Outside, some demonstrators directly targeted him, chanting: “Pouyanné, chicken”.

Total’s investments in wind and solar farms and other new forms of energy are no small thing. This year, the company increased its renewable energy investment budget to $5 billion, out of a total capital expenditure of $16-18 billion, up from $4 billion in 2022. But this stance has sparked less enthusiasm from investors than their peers in the US, which have stuck more firmly to their oil and gas roots, while not really turning the dial on public opinion.

“From an equity perspective, Total isn’t trading at the level of its US peers and yet it’s still pelted with eggs and tomatoes on the street,” says Gauthier.

The group is starting to fight back. In an ongoing case, Total is suing Greenpeace in France for a symbolic €1 in damages for a report on its emissions, which the company claims is misleading.

Last month, French newsletter La Lettre A got hold of an internal guide Total produced for its employees, tongue-in-cheek advice on how to survive dinner parties. The company says the document was intended to help staff respond to regular disputes.

These include its $10 billion Lake Albert oil project and a related pipeline that will pass through Uganda and Tanzania – a red line for those who advocate ending new oil developments and a recurring trigger for protests.

“Clearly companies cannot get off fossil fuels in a single day. But when it comes to launching new projects, it’s extremely simple,” says Anne-Fleur Goll, a 26-year-old activist who also works in climate consultancy at Deloitte.

Goll made a splash on her own last year when she helped organize an open letter to Total from more than 800 students and graduates, all of whom said they would never work at the company, particularly because of the Ugandan pipeline . She feels their response on the matter was, as always, “defensive and condescending.”

Next year, it seems inevitable that cameras will line up at dawn before shareholders’ meetings of Total and other oil groups. In the meantime, though, a little more conversation wouldn’t hurt.

sarah.white@ft.com