PRESS RELEASE
Norges Bank brings its climate credibility into question by backing Shell’s climate retreat
Norges Bank Investment Management (NBIM), one of the largest shareholders in Shell (3%), announced it will vote against the Follow This climate resolution (item 23) citing to ‘believe’ Shell has a Paris-aligned transition plan.
“NBIM’s ‘belief’ that an oil and gas company that will not reduce its total emissions this decade is Paris-aligned is remarkable,” responds Mark van Baal, founder of Follow This.
“Luckily, more and more investors base their decisions on science and take leadership by co-filing and voting in favour of climate resolutions. NBIM will follow their leadership one day.”
“With their vote against Paris-alignment at Shell, NBIM puts its climate credibility into question.”
“Why should Shell do more than just talk about climate if one of its biggest shareholders only talks and refuses to do bare minimum, which is to vote for a climate resolution filed by 27 of its peers.”
Rationale NBIM: “Vote rationale: Shell 2019s Energy Transition Strategy has evolved under the new CEO. We nevertheless believe that it sufficiently retains the core components of a Paris-aligned transition plan and those outlined by Norges Bank Investment Management 2019s expectations on climate change. Our expectations ask for interim and net zero targets. We have encouraged Shell to make additional strategy disclosures that could reduce uncertainty about the company 2019s direction in the mid-2030s.”
Most investors understand that their votes for the Follow This climate resolution (item 23) – the only one at a supermajor this year – will show if they are committed to Paris or not.
For reference, please read the final investor briefing. Shell’s smokescreens are lifted, such as Shell’s claim that the Follow This resolution is against good governance. This smokescreen is Shell’s last resort, because no investor ‘believes’ (the word that Shell consistently uses) that Shell is aligned with Paris after its backtrack.
