Shell suffers drop in investor support for climate strategy

Shell’s climate targets were exposed for criticism at the company’s annual meeting, as shareholders supported the strategy in lower numbers than last year and activists protesting against the continued development of fossil fuels have delayed proceedings for nearly three hours.

Under the ornate dome roof of Central Hall Westminster in London, protesters, who all had to hold Shell shares to gain access, shouted and shouted as chairman Andrew Mackenzie tried to start proceedings.

“Of must fall” and “your profits will only drown us for so long”, shouted the group of about 50 shareholders, as they promised to dangle themselves into Shell’s “fossil fuel pipes” and sang “We will stop you” in front of Shell. Melody of Kevin’s hit from 1977 We’ll rock you.

After 90 minutes, Mackenzie asked other shareholders to vacate the room to allow police to arrive and remove the activists, some of whom claimed to have glued themselves to their chairs.

Like their counterparts BP, TotalEnergies and ExxonMobil, Shell is trying to deliver an increasingly complex set of shareholder requirements by continuing to generate health returns while refurbishing its business to reduce its carbon emissions to net zero by 2050.

When the meeting finally resumed, two hours and 40 minutes late, 80% of shareholders voted in favor of Shell’s transition strategy and the progress it has made in the last 12 months. However, that was less than 89 percent who supported the program when it was unveiled last year.

A rival decision by Dutch shareholder group Activ This, which says Shell’s plan does not go far enough and is not in line with the 2015 Paris climate agreement, also drew less support. Just over 20% of shareholders voted in favor of the Follow This decision, compared to 30% last year.

The General Assembly was Shell’s first in London since it simplified its Anglo-Dutch structure in December by relocating its headquarters to the UK.

CEO Ben Van Borden told unnamed shareholders that he had “made significant progress” in its efforts to renovate the business. By the end of 2021 the company had reduced total emissions from its operations by 18% compared to 2016 and was committed to a 50% reduction by 2030, he said. .

The company also reduced the carbon content of the products it sells by 2.5% compared to 2016, and aims for a 9-12% reduction by 2024, Van Borden added. “We are strengthening Shell to provide a secure supply of energy where it is most needed.”

Follow This, which submits the same decision to a number of oil and gas companies, argues that Shell should commit to a complete reduction in scope 3 emissions generated from the fuels it sells. Shell’s goals are to reduce the carbon intensity of its products, a measure that reflects the relative emissions of all of its energy, including low-carbon and zero-solution solutions.

Followed by this, Mark van Baal said the vote in favor of her decision remained significant. “20% are still shareholder revolt and we need to work with them because they see that these companies, not just Shell, are not going to change their business models on their own,” he said.

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Shell suffers drop in investor support for climate strategy Source link Shell suffers drop in investor support for climate strategy

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