Shell shareholders reject investor climate resolution
Shell shareholders overwhelmingly rejected a climate resolution filed by an activist group following a meeting punctuated by protests.
In March, Shell lowered a 2030 carbon reduction target, 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 T 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.
The resolution received 18.6% support from shareholders, compared with just over 20% last year.
Shell's board had urged investors to oppose the resolution, whose backers included Amundi, Scottish Widows, Rathbones Group and Edmond de Rothschild Asset Management.
At the same time, a separate resolution brought forward by Shell's board on its climate strategy won 78.2% support. "I'm pleased that we have seen the Follow This resolution get an even lower share of the votes compared to previous years. That's a sign of growing trust and confidence in our ability to navigate the energy transition," CEO Wael Sawan told reporters.
The annual shareholder meeting was disrupted several times by climate protesters. Climate protesters also held a demonstration outside the meeting.
More oil. The meeting was dominated by shareholder questions about Shell's energy transition strategy. 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.
The company, however, introduced a new "ambition" to cut overall emissions from oil products such as gasoline and jet fuel sold to customers by 15%-20% by 2030 compared with 2021. End-user emissions, referred to as Scope 3, account for about 95% of the company's greenhouse gas pollution.
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