Shell shareholders are set to vote for new climate change targets for the company. The shareholders include the Church of England, Dutch environmental activists and pension funds from Europe.
Dissatisfaction of institutional investors
The new resolution will be tabled by a group of retail investors who have expressed concerns about the oil and gas major not taking sufficient measures to reduce carbon emissions. The resolution will be focused on Shell meeting targets for carbon emission reduction.
Follow This Founder Mark van Baal said that institutional investors will vote for the resolution, making it clear that they are unhappy with the position that the oil and gas contractor is taking.
The Church of England and several pension funds from Europe are supporting the new proposal. Church of England Head of Engagement for Church Commissioners Adam Matthews said that he does not think that the resolution will pass, but as it is carefully worded and the Church of England supports its intent, Shell’s board of directors should take note of what the shareholders are trying to express.
ECGS, an independent proxy advisors group from Europe, has recommended investors to vote in favour of the resolution. However, major advisors ISS and Glass Lewis do not support the resolution.
Shell’s take on the resolution
Shell’s board is not in favour of the resolution and has asked the shareholders to vote against it. To pass it, a 75 per cent vote in favour would be needed. Shell said that setting targets such as these would harm the company, and any emissions due to the burning of the oil and gas produced by the company are largely covered by the climate plans and laws of individual countries under the Paris accord.
A Shell spokesperson said that the company is happy that the major proxy agencies support the board of directors and their views that resolution is not in the company’s best interests or those of the shareholders.