Odey urges Shell to drop appeal against order to slash emissions

Odey Asset Management has called on Shell to dismiss her appeal against A.D. Judgment of the Dutch court Focus on its climate strategy and instead fund an independent body that will monitor the emissions of each oil and gas company.

The call from the London Hedge Fund, which has bought about $ 70 million of Shell shares since early 2021, comes at a time when Europe’s largest oil company is preparing for shareholders to vote for it. Energy transfer strategy At its annual general meeting next week.

In a letter to CEO Ben Van Borden, Uday said he would vote for Shell’s strategy even though it has “some sympathy with those who doubt its transparency and apparent ambiguity.”

The fund’s director, Henry Steele, who wrote the letter, told the Financial Times that Shell was “sending the wrong signals” when it appealed the Dutch ruling last year ordering the oil company to reduce its emissions by 45% by 2030.

Shell has since pledged to reduce emissions from its own operations, known as scope 1 and scope 2, by 50% by 2030, but it has appealed the court’s decision. The UK-based company claims it can not be tied to targets for 3-volume emissions from the fuel it sells, which it says are beyond its control, especially while governments are doing little to reduce demand.

Uday proposed to Sheill to repeal her objection and instead start her own European litigation to impose the same ruling on all oil and gas companies to create an equal playing field.

Audio Fund CEO Henry Steele told FT that Shell “sends the wrong signals”

Shell should also fund the establishment of an independent auditor who will check the emissions data published by each oil and gas company in the same way that the financial results are audited, Uday said in the letter.

Companies now publish their own data and often use different methodologies, making it difficult to compare them, Steele said.

“If you have the credibility and trust of the company then the whole industry should have a clearly independent auditor of emissions, which other stakeholders can be held accountable for,” he said.

Shell said it would review Uday’s recommendations. “Significant dialogue with investors is central to the way we determine our approach and we have communicated with Odey as part of our ongoing investor engagement program,” it read.

Audi shares worth $ 70 million represent about 0.03% of the company’s shares.

Shell, which Simplified its Anglo-Dutch structure in December By relocating its headquarters to London, it was one of the first oil companies to put its zero-emission strategy to the vote last May. Nearly 89% of shareholders supported the proposal, although it was not lower than the 95% accepted for decisions submitted by management.

At that meeting 30% of shareholders voted in favor of a rival decision by the Dutch activist group Follow This, which called on the oil company to set more “inspiring” targets.

Follow This, which submits the same decision to other oil companies, has so far been less successful in the voting season with fewer shareholders supporting its decision in BP than in 2021.

BlackRock, the world’s largest CFO, has already said it will support fewer shareholder decisions on climate change this year, some of which have become too extreme or too aggressive.

Odey urges Shell to drop appeal against order to slash emissions Source link Odey urges Shell to drop appeal against order to slash emissions

Related Articles

Back to top button