Reuters | Shell shareholders on Tuesday overwhelmingly rejected a climate resolution filed by an activist group following a meeting punctuated by protests.
The vote came after Shell weakened a 2030 carbon reduction target in March, citing expectations for strong gas demand and uncertainty in the energy transition, while focusing on more profitable operations, mainly in oil and gas.
The resolution was filed by activist shareholder Follow This and backed by a group of 27 investors that collectively have around $4 trillion under management. It urged Shell to align its medium-term carbon emissions reduction targets with the Paris Climate Agreement, including emissions from fuels burnt by consumers.
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“Your board wants to continue with the business model of turning hydrocarbons into petro-dollars … They don’t want to step out of their comfort zone because they don’t know how to make profits with clean energy,” Follow This founder Mark van Baal said.
In March, Shell said it would target a 15-20% reduction in net carbon intensity of its energy products by 2030 compared with 2016 intensity levels. It had previously aimed for a 20% cut. It also scrapped a 2035 objective, while affirming a plan to cut emissions to net zero by 2050.
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Scientists say the world must cut greenhouse gas emissions by around 43% by 2030 from 2019 levels to stand any chance of meeting the 2015 Paris Agreement goal of keeping warming well below 2 degrees Celsius (3.6 degrees Fahrenheit) above pre-industrial levels.
