Norway Fund Supports Exxon, Chevron Shareholder Proposals

Norway's $872 billion sovereign wealth fund, the world's largest, will back shareholder proposals aimed at changing corporate governance and climate policies at U.S. oil majors Exxon Mobil (XOM) and Chevron, it said on Tuesday.

The companies' boards have recommended that owners reject the measures, the fund added.

Norges Bank Investment Management (NBIM), which manages the fund, was the seventh largest shareholder of both firms at the end of 2015, Thomson Reuters Eikon data shows.

"Norges Bank Investment Management will vote in favour of three shareholder proposals related to climate change policies, requirement for independent chairperson and inclusion of proxy access into the company bylaw," the fund said ahead of Exxon's May 25 annual general meeting.

Exxon should be required to publish reports detailing the impact of climate change policies on its business, including the potential effects of low-emissions scenarios, it said.

"We encourage companies to outline their position on specific climate change regulation relevant to their business profitability and outlook," the fund said.

It also backed a proposal that would require Chevron to publish annual assessments of climate change impact, and to set a threshold of 10 percent support for holding extraordinary shareholder meetings.

At the end of 2015, NBIM said it held a 0.78 percent stake in Exxon, valued at $2.54 billion, while its 0.85 percent holding in Chevron was worth $1.45 billion.

Reporting by Terje Solsvik