The Independent – A record number of global institutions have co-filed a shareholder resolution at Shell, calling for the UK-headquartered oil giant to align its emissions reduction targets with the Paris Climate Agreement.
The resolution, led by Dutch activist group Follow This, has been backed 27 institutions, including Nest, Rathbones, Brunel Pension Partnership and Amundi.
It proposes that Shell set its medium-term targets for scope three greenhouse gas emissions to be consistent with efforts to limit global warming to 1.5C above pre-industrial levels.
Mark van Baal, founder of Follow This, called the support an “extraordinary step”, showing how dedicated the investors are to tackling the climate crisis at its source.
He said: “This escalation of 27 leading investors puts the call for emissions reductions by energy companies front and centre for all institutional investors.”
Follow This, which files similar resolutions at big oil firms every year, said Shell’s shareholders will be asked to support the resolution as an advisory vote at this year’s annual general meeting, expected to take place in London in spring.
A Shell spokesperson said the firm believes its climate targets are “aligned with the more ambitious goal of the Paris Agreement”.
But Follow This disputes the claim, citing the Climate Action 100+ benchmark, which says Shell’s medium-term emissions reduction targets are not aligned with the goal of limiting global warming to 1.5C.
The activist group added that the company does not sufficiently demonstrate how it will reach its targets, leaving a lack of clarity over how its approach contributes to a significant reduction in global emissions this decade.
Mr Van Baal said the record number of co-filers could be attributed to Shell seemingly backtracking on some of their climate commitments last year.
Mr Van Baal said the support for this year’s resolution is by far the strongest they have seen at any oil major’s AGMs.
It surpasses the 17 institutions which backed Follow This’s resolution at French oil giant TotalEnergies’ AGM last year, helping it to secure 30% of votes, which can be considered a sizeable shareholder revolt.
In terms of Shell, he said: “We expect votes to increase as more investors follow their leading peers by voting for change at Shell, which is the bare minimum they can do.”
“Large shareholders hold the key to tackling the climate crisis with their votes at shareholders’ meetings.
“Shell will only change if more shareholders vote for change.
“The resolution is designed to give Shell a shareholder mandate to drive the energy transition.”
At the firm’s AGM last year, the Follow This resolution sparked a shareholder rebellion when it secure a fifth of the votes, against the board’s recommendation.
