Financial Times | Big investors in Shell, including Amundi and Axa Investment Managers, have urged the fossil fuel producer’s other shareholders to send a “strong signal” to the oil and gas industry by backing their resolution seeking greater climate action.
[…]The resolution, filed in January, and Thursday’s letter mark the most significant shareholder push to date on climate policy at the oil and gas group and comes at a time of increasing divergence between investors over climate risks.
In the Paris Agreement, countries agreed to limit global temperature rises to well below 2C, and ideally to 1.5C, above pre-industrial levels. Last year was the hottest on record.
“This year’s vote is especially important as Shell has recently backtracked on its climate targets, doubling down on its determination to continue oil and gas extraction,” says the letter, which was co-ordinated by green investor group Follow This.
“Now is the time to send a strong signal to the industry that investors are determined to reach Paris.”
[…]The vote at Shell later this month is the only chance investors will have this year to push oil and gas companies to align with the Paris Agreement, after Follow This withdrew a motion at Exxon when the US oil and gas giant sued the investor group.
“All oil majors will look to see what happens at Shell,” said the letter, which is being sent to almost 2,000 investors, including big shareholders.
Follow This has filed resolutions at Shell since 2016, but this year’s motion has received the largest backing from investors.
Last month, Dutch investor MN said it would vote in favour of the resolution. MN leads the engagement with Shell on behalf of investor alliance Climate Action 100+.
