AP7 publishes on its website:
AP7, together with the Ethos Foundation and 18 other investors, filed a shareholder resolution at TotalEnergies’ Annual General Meeting. The coalition calls on TotalEnergies to separate the functions of Chair of the board and CEO, which are currently held by one and the same person.
TotalEnergies is requested to cease the combined role of Chair and CEO. The proposal, submitted by the Ethos Foundation and the coalition of international investors with the support of FrenchSIF, will be put up for an advisory vote at the AGM on 24 May. If the proposal receives a high level of shareholder support, it will be a strong message to the company to review its governance model to ensure better balance of responsibility and control.
The separation of the roles is a fundamental principle of AP7’s ownership guidelines and is widely regarded as a matter of good corporate governance. The concentration of power to a single person increases the risk of conflicts of interest since the board of directors’ possibilities to ensure the shareholders’ interests in the company’s operations are weakened.
Good corporate governance is particularly important for an oil and gas company such as TotalEnergies given the company’s size and the sector’s central importance to achieving global climate goals. Separation of the functions of CEO and Chair of the board can strengthen the dialogue between investors and the board on climate and transition issues.
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