Shell climate resolution gains support
May 11, 2023
Lead investors engaging Shell under Climate Action 100+ have indicated their intention to support a climate resolution requiring the company to align its scope 3 emissions targets with the Paris Agreement.
Dutch pension managers PGGM and MN, part of the 700-strong Climate Action 100+ collective representing $68trn in AUM, have declared support for a climate resolution put forward by activist group Follow This.
The motion urges Shell to set clear targets to reduce its scope 3 emissions by 2030 to ensure emission reductions targets are in line with the goals of the Paris Agreement.
Ahead of Shell’s AGM on May 23, Dutch pension managers PGGM and MN have declared they will vote in favour of the climate resolution.
In a statement PGGM said: “The adoption and implementation of this resolution will reduce the risk of stranded assets and/or increase the opportunities afforded by the energy transition.”
Ahead of this year’s proxy season, Climate Action 100+ has also flagged 17 shareholder proposals and pre-declared votes for management proposals at six companies, including Valero and Chevron.
Shell faces additional pressure to improve climate targets as the Church of England Pension Board has announced plans to vote against the reappointment of all directors.
The fund plans to vote out Shell’s executive Wael Sawan and chairman Sir Andrew Mackenzie for failing to address climate risks by setting adequate targets.
Previously, Sawan confirmed Shell was reviewing its plan to reduce oil output by 1% to 2% per year by 2030 to improve the oil giant’s performance and returns.
The Church of England Pension Board has also declared it will vote in favour of the shareholder resolution filed by Follow This.
Shell has faced increasing scrutiny from shareholders for the company’s failures to manage climate risks and progress climate strategies.
In February, the oil giant was sued by ClientEarth, a non-profit organisation and shareholder in Shell, for its “fundamentally flawed” climate transition strategy.
Update 11.5.2023
‘A previous version of this story stated: ‘The Climate Action 100+ investor initiative has expressed support for a climate resolution requiring Shell’. This is not accurate. CA100+ does not and cannot support resolutions. In this instance, it is lead investors that have predeclared their votes with the CA100+ initiative then simply ‘flagging’ the resolution for information purposes only. Signatories are independent fiduciaries responsible for their own investment and voting decisions and must always act completely independently to set their own strategies, policies and practices based on their own best interests. Full CA100+ disclaimer here.’
Last Updated: 11 May 2023