BNP Paribas Asset Management and Federated Hermes have backed global energy company Total in its pledge to achieve net-zero emissions by 2050.
Total's target is a result of collaborative investor engagement with the company through Climate Action 100+, an investor initiative launched in 2017 to ensure the world's largest corporate greenhouse gas emitters take "necessary action" on climate change.
BNP Paribas AM and Federated Hermes are two of the leading institutional investors in the organisation. More than 450 investors and stewardship providers, with more than $40trn in assets, have taken part around the world.
The longstanding focus of discussion with the company has been on three key themes: achieving net-zero carbon emissions across operations and products by 2050, setting targets aligned to this goal and ensuring oil and gas capital expenditure (capex) is consistent with the Paris Agreement.
BNP Paribas AM global head of stewardship and policy Helena Viñes Fiestas said: "This agreement is one of the most significant achievements in the oil and gas industry so far."
"The global energy system is under significant structural pressure from long-term forces such as decarbonisation and the deflationary impact of renewables, and how companies respond to the challenge of climate change will be key in determining their competitiveness in the longer-term."
Bruce Duguid head of stewardship EOS at Federated Hermes said there had been constructive engagement over a number of years.
"This significantly advances the company's long-term commitments on climate change, complemented by the important commitment to assess all new capex for consistency with the Paris goals," he said.
This significantly advances the company's long-term commitments on climate change."