PRESS RELEASE
With 19% of votes, investors urge Shell to align with Paris
A similar percentage of shareholders (19%, down from 20% in 2023) has urged Shell to improve its climate targets by voting in favour of the Follow This climate resolution (item 23) at Shell’s AGM in London today. Moreover, 22% voted against Shell’s watered-down strategy (item 22). The investors follow a group of 27 peers who co-filed the resolution that supports the company to align its medium-term emissions reduction targets with the Paris Climate Agreement.
“Shell cannot continue ignoring these investors, 19% represents a shareholder rebellion as 99% of shareholders typically vote with management,” responds Mark van Baal of green shareholder group Follow This that filed the climate resolution with 27 investors.
“Votes for this climate resolution show which investors are committed to Paris and which investors endorse Big Oil’s refusal to take meaningful climate action.”
“We thank the investors who voted in favour, especially the 27 co-filers. They are the true stewards of the global economy in view of the climate crisis.”
“Big Oil can make or break the Paris Climate Agreement. These investors realize that their votes are key to changing Big Oil. Their peers will follow one day.”
Co-filing investors contribute to votes
The 27 leading investors who filed the climate resolution alongside Follow This are largely to thank for the votes, according to Van Baal: “We thank our 27 co-filers for their commendable leadership and courage in speaking out. Their steadfast support has been a significant contribution to maintaining shareholder pressure.”
Ahead of the AGM, several other investors predeclared their vote in favor of the resolution. As Climate Action 100+ engagement lead at Shell, Dutch asset manager MN published their intention to support the resolution. It appears other signatories of the CA100+ coalition have voted in support of their engagement lead.
Other Oil Majors look at Shell
Today’s voting result is significant because this was the only Paris-aligned targets resolution on the ballot at any of the big five oil majors this year. Other oil and gas companies will look to see what happens at Shell. Van Baal: “Today investors have sent a ripple through the entire industry, as more shareholders are asking an oil major to be Paris aligned.”
Voting on other resolutions
In addition to the Follow This climate resolution (item 23 on the ballot), shareholders had the opportunity to vote on Shell’s own Energy Transition Strategy (item 22) with watered down emissions reduction targets.
22% of shareholders voted against Shell’s strategy, demonstrating widespread concern about the company backtracking on climate commitments.
Next steps
Under the UK corporate governance code, Shell is required to report on “actions taken” within six months after a resolution gains at least 20% of the votes against management advice at an AGM.
“Because investors have voted against Shell’s own strategy, the company must now take action. Shareholders support Shell to improve its targets to be in line with the Paris Climate Agreement.”
Speech Mark van Baal at AGM | London May 21 2024
