Shell’s climate plans remain gravely inadequate to justify a ‘yes’ vote from investors

Dear investor in Shell,

Shell is urging you to vote for its own resolution that mandates their own strategy (resolution 20) and against the Follow This climate resolution that supports Paris-consistent short-, medium-, and long-term emission reduction targets (resolution 21).

Following the release of Shell’s updated Energy Transition Strategy last week, which you will have the chance to vote on at the AGM next month, we would like to draw your attention to this analysis produced by ACCR.

A summary:

  • Shell makes no commitment to absolute emission reductions in the short- and medium-term (2030).
  • Shell has made no change since their February release to its emission reduction strategy which is still overly reliant on offsets.
  • Shell continues to try to justify their 65% capex in upstream oil and gas compared to 13% capex in renewables.

“To meet its emission intensity target a wide range of 2030 emissions outcomes are possible, ranging from a 30% increase (pre-abatement) to a 30% decline. A difference in absolute terms that is equivalent to the carbon footprint of Germany.”

Shell claims in their Transition Strategy that “there is no established standard for aligning an energy supplier’s decarbonation strategy with Paris”. In fact, there is a very clear standard: absolute emission reductions. This is what Follow This has consistently asked for in our climate resolution.

On May 18th, you have the choice: vote for Shell’s strategy without the necessary absolute emissions reductions in this decade, or support Shell to advance their targets, strategy and investments to Paris-consistency with a vote for the Follow This climate resolution.

We encourage you to consider this analysis carefully before casting your vote next month.

Follow This

 

First read: Royal Dutch Shell Energy Transition report (PDF)

 

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