Occidental Up On Buffet Buying But Pressured To Vote On Green Targets

Occidental Up On Buffet Buying But Pressured To Vote On Green Targets - Carbon Herald
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The Оccidental Petroleum (NYSE: OXY) stock price jumped 8.4% today after Warren Buffett increased his position in the oil company.

Buffett’s Berkshire Hathaway (NYSE: BRK.A) disclosed the position after filing required papers with the Securities and Exchange Commission (SEC) that showed it had ownership of over 136 million shares of OXY.

This number was achieved after several purchases were made for approximately $985 million between the 14th and 16th of March at an average price of $54.41.

With this development Buffet’s shares now account for 14.6% of the company. It appears that the big trade was made possible by Carl Icahn’s closure of his long-standing position in Occidental earlier in March.

At the time of writing the price has achieved a 96% gain year-to-date.

Occidental Shareholders To Vote On Emissions Targets?

The company was also in the news today as the SEC announced it will demand a shareholder vote be held on reducing carbon dioxide emissions by Occidental.

This comes despite Occidental’s ambitious goals when compared to its peers in the oil and gas industry. The company aims to reduce its carbon emissions to zero by 2040.

Relevant: Occidental Stock To Benefit From $507 Million A Year Carbon Management Business

OXY is also the sole US oil company that has set specific scope 3 targets for its emissions coming from customers it works with.

Its carbon management business called Oxy Low Carbon Ventures is also one of the most developed in the industry with multiple partnerships and projects announced over the last year.

It appears this wasn’t enough for Dutch activist group Follow This (who are also shareholders in multiple oil companies) from filing a motion with the SEC.

“It’s telling that the SEC basically states that even Occidental is not Paris consistent,” said Mark van Baal, founder of Follow This. “I hope the investors realise that these companies won’t change of their own accord — that they need to vote.”

Read more: Why Does Climate-Focused ETF NETZ Include GM and Occidental?

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