Shell urged shareholders to vote against an independent resolution, co-filed by a group of 27 investors, which calls for the energy company to set stringent climate targets.
The resolution spearheaded by activist shareholder Follow marks the most significant drive in terms of the participants to date and will be voted on at Shell’s annual general meeting on May 21.
In a pre-AGM notice, Shell advised shareholders to oppose the resolution, arguing that it runs counter to good governance and shareholders’ interests while adversely affecting customers.
The resolution, backed by investors with around $4 trillion in assets, advocated for the energy company to align its medium-term carbon reduction targets with the Paris Climate Agreement, including emissions from fuel burning by Shell’s consumers.
This move came after Shell revised down on its 2030 carbon reduction target and scrapped a 2035 carbon intensity reduction objective, citing expectations for strong gas demand and uncertainty in the energy transition. The company, however, reaffirmed a plan to cut emissions to net zero by 2050.
Shell said the resolution if approved, would have a material adverse financial impact on the company and its ambition to lead the energy transition.
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Follow This founder Mark van Baal said that Shell’s rejection demonstrates the company’s intention to stay on a collision course with the Paris Climate Agreement.
Shell’s retreat followed a similar move by its rival BP last year, as many governments around the world slowed down the rollout of climate policies and delayed targets in response to soaring energy costs and supply concerns.
