Shell Shareholders Reject Activist Climate Resolution: Details

Shell PLC SHEL shareholders have rejected a climate resolution proposed by an activist group during the annual general meeting with only 18.6% support.

The resolution, supported by a coalition of investors managing approximately $4 trillion, aimed to align Shell’s carbon reduction targets with the Paris Climate Agreement, reported Reuters.

On the other hand, Shell’s energy transition strategy 2024 resolution raked in an overwhelming support of 78% of the shareholders.

An activist shareholder group filed the resolution urging Shell to adopt more stringent medium-term carbon emissions reduction goals. 

“Shell’s shareholders have strongly backed our strategy to deliver more value with less emissions, as we transform to become a net-zero emissions energy business by 2050,” said CEO Wael Sawan.

Shell has faced scrutiny over its energy transition strategy, particularly after adjusting its 2030 carbon reduction target in March. 

Recently, Shell introduced a new goal to reduce emissions from oil products such as gasoline and jet fuel sold to customers by 15-20% by 2030, using 2021 as a baseline.

These end-user emissions, known as Scope 3, constitute about 95% of Shell’s total greenhouse gas emissions. Chairman Andrew Mackenzie stated that continued investment in oil and gas would be necessary.

Shell stock has gained more than19% in the last 12 months. Investors can gain exposure to the stock via Direxion Hydrogen ETF HJEN and VanEck Natural Resources ETF HAP.

Also Read: Shell Exits Chinese Power Market, Eyes Gas Growth: Report

Price Action: SHEL shares are trading lower by 0.09% at $71.53 at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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