Shell Defends Climate Goals, Rejects Shareholder Resolution As Damaging

Shell plc SHEL urged shareholders in an AGM notice today to vote against an independent resolution, co-filed by a group of 27 investors, that demanded the company to set tighter climate targets.

The resolution, led by activist shareholders called Follow This, will be voted on at Shell’s annual general meeting on May 21.

The company stated, “Your Directors believe that Resolution 23 is against both good governance and shareholders’ interests, and also has negative consequences for our customers.”

“The resolution, if approved, would have a material negative financial impact on the Company and its ambition to be the investment case through the energy transition.” 

“Your Directors believe that Resolution 23 will also not mitigate global warming – it could potentially have the opposite impact and also negatively impact energy security.”

The resolution, filed by a group of investors (with around $4 trillion under management), asks Shell to align its medium-term carbon reduction targets with the Paris Climate Agreement (comprising emissions from fuels burnt by its consumers), as per Reuters.

The report quoted Follow This founder Mark van Baal, who said, “Shell’s rejection of this fair ask by 27 of its largest investors demonstrates the company’s intention to stay on collision course with the Paris Climate Agreement.”

Last month, the oil giant lowered the net carbon intensity of the energy products it sells by 6.3% compared to 2016, the third consecutive year of hitting the target.

The company set a new ambition to reduce customer emissions from the use of its oil products by 15%-20% by 2030 compared with 2021 and against its previous target of 20%.

Related: Shell’s LNG Trading Update Reveals Surprising Shifts: Details

Price Action: SHEL shares are up 0.46% at $71.39 on the last check Wednesday.

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