Shell: Activist Investor Secures Support Before Vote

Activist investor Follow This said on Monday that a shareholder resolution it submitted for a vote at Shell’s upcoming annual meeting had won the backing of key investors from the Climate Action 100+ initiative.

Votes on the Dutch group’s resolutions at oil and gas majors’ shareholder meetings this year are a litmus test of investors’ appetite for more ambitious climate targets.

Support for such resolutions waned last year amid a renewed focus on energy security in the wake of Russia’s war in Ukraine.

Follow This said Dutch pension managers PGGM and MN — which engage with Shell on behalf of some 700 Climate Action 100+ investors — will vote in favor of the resolution at the meeting in London on May 23. […]

The resolution calls on Shell to align its 2030 Scope 3 (end-use) emissions reduction target with the Paris Agreement. But Shell insists it “already has ambitious and Paris-aligned targets.”

Explaining its decision to support the Follow This resolution at the Shell meeting, PGGMhttps://www.energyintel.com/00000187-fbf0-dd89-a9d7-fbf8afb80000 said it believes the resolution would “reduce the risk of stranded assets and/or increase the opportunities afforded by the energy transition.”

“Although Shell is a front-runner among oil and gas companies, there is insufficient evidence that the company’s current strategy is aligned with a 1.5°C warming pathway, which requires a significant decrease in oil and gas production and increase in the supply of low carbon solutions,” it added.

Read the entire article by Tom Daly and Andrew Kelly in Energy Intelligence: https://www.energyintel.com/00000187-fbf0-dd89-a9d7-fbf8afb80000