TotalEnergies’ requested to split the CEO and board chair roles

French oil company TotalEnergies is considering dividing CEO and chairman positions to accelerate its transition from fossil fuels, with investors submitting a petition.

A faction of investors in TotalEnergies, a prominent French oil business, has proposed that the corporation divide the CEO and chairman positions, arguing that this will expedite the company's transition away from fossil fuels. 19 foreign investors with almost 20 million shares of TotalEnergies, the Ethos Foundation, a Swiss pension fund investment organization, and the French Sustainable Investment Forum all submitted the petition.

The move puts Patrick Pouyanne, who has led a strategy of raising oil and gas output while also increasing renewables, in jeopardy. Pouyanne is the CEO and chairman of the world's fifth-largest listed oil business. Investors who care about climate change have put more pressure on the major oil and gas corporations in the world to reduce carbon emissions and shift away from the production of fossil fuels in recent years.

By 2030, TotalEnergies does not anticipate a significant decrease in the emissions from its goods. 30% of TotalEnergies' investors voted against the company's advice at its AGM last year in favor of quicker emissions cuts. Since 2016, 14 firms on France's CAC 40 index have shared CEO and chairman positions, while 12 maintain a single CEO or chairman. The resolution outlines the board chair's authority to set agendas and review investor requests. In 2022, the board refused to vote on a climate change resolution.