Climate votes fought by major oil companies get key backing from proxy adviser

An investor-led push for major oil companies to set climate goals in line with the Paris agreement has won support from a key proxy adviser for the first time, setting up a showdown at upcoming shareholder meetings.

Institutional Shareholder Services urged investors in Occidental Petroleum Corp. and refiner Valero Energy Corp. to back proposals to align the companies’ targets for cutting greenhouse gas emissions — including those of their customers — with the Paris accord, according to investor reports seen by Bloomberg.

ISS is likely to issue the same recommendation for eight other oil companies, including Exxon Mobil Corp. and Chevron Corp., facing similar votes, said Mark van Baal, founder of activist investor group Follow This, which put forward the proposal.