Shell Urges Investors to Reject Shareholder Group’s Climate Demands

Emmanuel Addeh in Abuja

Shell has urged shareholders to vote against an independent resolution, co-filed by a group of 27 investors, that called on the energy company to set tighter climate targets.

The resolution, the biggest such drive to date in terms of the size of the participants, is led by activist shareholder ‘Follow This’ and will be voted on at Shell’s annual general meeting on May 21.

In a notice ahead of the Annual General Meeting (AGM), Shell recommended voting against the resolution, saying it “is against both good governance and shareholders’ interests, and also has negative consequences for our customers.”

The resolution, filed by a group of investors with around $4 trillion under management, urges Shell to align its medium-term carbon reduction targets with the Paris Climate Agreement, including emissions from fuels burnt by Shell’s consumers, Reuters said.

Shell last month weakened a 2030 carbon reduction target and scrapped a 2035 carbon intensity reduction objective, citing expectations for strong gas demand and uncertainty in the energy transition. The company however reaffirmed a plan to cut emissions to net zero by 2050.