Shell Faces Criticism On Climate Change Initiatives: Report

At Shell PLC's SHEL annual shareholder meeting, a resolution was tabled by the Dutch group Follow This, a small activist investor and campaign organization with holdings in numerous Big Oil firms.
Shell's annual general meeting Tuesday looks acrimonious, with climate-focused investors seeking to ramp up pressure on the energy major after an extraordinary run of record profits, reported CNBC.
Shell reported 1Q23 adjusted EBITDA of $21.4 billion, higher than $19.0 billion a year ago, on solid operational performance.
Climate Resolution 26 urges Shell to match its climate goals with the Paris Agreement and commit to 100% reductions in carbon emissions by 2030, mentioned the report.
According to Follow This, these reductions should cover Scope 3 emissions produced by customers using their gas and oil.
Also Read: Shell Collaborates With AI Technology Firm To Reduce Exploration Days: Report
The resolution has received the support of Shell shareholders MN and PGGM, two Dutch pension managers.
According to the report, Shell, whose goal is to have a net-zero emissions business by 2050, has advised shareholders to reject the Follow This proposal. The company said Climate Resolution 26 was "unclear, generic, and would create confusion regarding Board and shareholder accountabilities."
"We strongly disagree with the Follow This resolution and with those organisations which have recommended supporting it, or voting against Board members. There must be an emphasis on changing the use of energy as much as its supply, and this is reflected in our approach," a Shell spokesperson stated.
"We will continue to invest in producing the energy the world needs today and for the foreseeable future. All of our investments have to provide a rate of return that our investors demand," the spokesperson added.
Price Action: SHEL shares are trading higher by 0.87% at $60.55 on the last check Tuesday.

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