Shareholders are backing a call on Irish-based industrial gases giant Linde plc to boost green energy use ahead of a debate on the issue at its annual general meeting (agm).
Linde’s local subsidiary, BOC Gases Ireland, spends an estimated €18 million a-year on electricity, making it one of the country’s biggest energy consumers.
Globally the group uses 42.5 million mega watt hours of electricity a year, more than the Republic’s own total consumption, much of it generated by fossil fuels.
Influential shareholders have confirmed their support for a motion asking Linde to set a clear renewables strategy tabled for debate at its agm on Tuesday July 28th by investor NorthStar Asset Management.
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Supporters include Swedish fund manager, Lannebo, French pension specialist, Ircantec, and Norwegian firms, Kommunal Landspensjonskasse (KLP) and Storebrand Asset Management.
Swiss proxy advisor, The Ethos Foundation, has recommended that its members vote for the motion.
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Shareholder concern at Linde’s continued high dependence on fossil fuels comes as further volatility threatens oil and gas prices following renewed hostilities between the US and Iran.
NorthStar welcomed the support. “It sends a clear signal that Linde must do more to disclose how it procures renewable electricity and manages the climate and cost risks that come with consuming more power than the nation of Ireland,” said the firm.
“Peers already distinguish their actively procured renewables and disclose clear targets, giving investors real confidence in their progress. We fear Linde is falling behind,” NorthStar warned.
“We hope the board hears its investors and adopts a credible, transparent procurement policy.”
ShareAction, which supports NorthStar’s call, said 18 institutional investors and their advisers, responsible for a total of $1.56 trillion (€1.37 trillion) in assets worldwide, will read a joint statement at Linde’s agm calling on its strengthen its approach to renewables procurement.
The organisation, which works with investors to use their influence on business to tackle issues including climate change, says Linde’s target to double low-carbon energy sourcing is opaque.
Critics of Linde’s strategy, including ShareAction and Action Speaks Louder (ASL), argue that it simply takes whatever renewable electricity comes through the networks in the 80 countries where it operates.
They maintain that it should adopt an active approach to sourcing renewable power, which is becoming more common in industry.
ASL, which tracks how well companies perform against their climate pledges, argues that Linde’s continued reliance on the grid is hard to justify in countries where wind, solar and batteries are available and competitively priced.
Linde did not respond to requests for comment. It recommends that shareholders oppose NorthStar’s motion, saying the group already has comprehensive climate goals.
“Our public disclosures provide transparent information needed by our shareholders and other stakeholders to understand the scope of these activities, including our policies and frameworks relating to renewable energy,” the recommendation says.
New York-listed Linde is the world’s biggest industrial gases manufacturer, with operations in 80 countries. It made almost $9 billion profit last year. It bought BOC in 2006.
