BP refused to put the same resolution to a vote
PRESS RELEASE
In contrast to BP, Shell complies with the Companies Act by putting the Follow This resolution to a vote at its AGM on May 19, the notice of meeting, published today shows. However, the board urges shareholders to vote against it.
“Shell advises shareholders to vote against staying informed about their investments,” said Mark van Baal, CEO of Follow This. “However, none of Shell’s arguments overrides investors’ fiduciary duty to stay informed.”
Shareholder resolution 23
The shareholder resolution requests Shell to disclose a strategy for creating shareholder value under scenarios of declining oil and gas demand. The resolution was filed by Follow This and 21 institutional investors, managing over €1.2 trillion in assets and holding approximately 0.42% in Shell.
“It appears that Shell is afraid to account for a declining fossil fuel market,” Van Baal adds. “Nevertheless, every shareholder needs to know how the company will create shareholder value in that conceivable scenario.”
Shell’s argument
Shell states that the request is “already comprehensively covered” in “any price scenario”.
The rebuttal of that argument is in the supporting statement of the resolution: “By ignoring the market share gains needed in a declining, competitive market and relying on single-dimension stress-testing disclosure, Shell leaves investors uncertain about its ability to create shareholder value.”
The supporting statement reminds Shell and shareholders of the importance of their request. “In 2020, with oil demand down 9%, Shell cut its dividend by 66%, the first cut since World War II.”
Shell has been here before
In 2017, Shell called Follow This’s request for emissions targets “unreasonable.” After shareholders voted for the resolution in growing numbers, Shell adopted targets – including for Scope 3 emissions. The pattern is repeating.
Board of BP faces shareholder rebellion
BP refused to put an identical resolution on the ballot. As a result, the board of BP faces a shareholder revolt with votes against two board resolutions and the chair, called by Follow This and 12 co-filing investors after BP refused their resolution. “Neither Shell or BP wants to answer a legitimate question of shareholders,” adds Van Baal.
List of co-filing investors
The resolution at Shell was co-filed by a group of 21 investors who manage over €1.2 trillion in assets. The following investors have publicly disclosed their involvement:
- Achmea IM
- Bernische Lehrerversicherungskasse
- Bernische Pensionskasse
- Edmond de Rothschild AM (France)
- Ethos Foundation
- Falkirk Council Pension Fund
- Groupama AM
- Lothian Pension Fund
- Mercy IS
- Ofi Invest AM
- Ostrum AM
- Pensionskasse Stadt Zürich
- West Yorkshire Pension Fund
