Kimmeridge Energy Management Company, an energy investment firm focused on advancing net zero emissions targets, owns a stake in California Resources Corporation, an oil and gas producer, and is pressuring the energy company to curb its production to increase its profits, Reuters reported.

The activist investment firm owns more than three million shares in California Resources, representing about a 4% stake, and is in discussions with the company’s management in recent weeks about how to increase its valuation, sources told Reuters. Kimmeridge is encouraging California Resources to divest from its Huntington Beach oil and gas properties in Orange County, which it believes could be worth around $800 million if the land is sold to real estate developers.

Kimmeridge is also advising California Resources to concentrate more on its carbon capture operations to meet net zero emissions targets, according to Reuters.

Kimmeridge entirely focuses on investing to accelerate the energy sector’s transition towards “net zero energy” goals in order to be “environmentally responsible,” according to its website. The firm believes that investing in projects that are environmentally and socially responsible creates long-term value and reduces risk.

Kimmeridge’s actions come amid the rise of environmental, social and corporate governance (ESG) investing strategies that often push companies to curb emissions and divest in fossil fuels to comply with international climate goals.

Despite high domestic crude and natural gas prices, California Resources’ shares have lagged behind peers this year as investors have shifted funds to other producers with higher growth rates that can capitalize on the commodity price upswing, Reuters reported. The stock has gained 7.7% this year, giving it a market capitalization of $3.5 billion, compared to the S&P energy index’s 41.4% gain.

Kimmeridge and California Resources did not immediately respond to the Daily Caller News Foundation’s request for comment.