27 shareholders, 5% Shell shares, independent resolution, climate targets, pressure, profits, investments in renewable energy, carbon emissions, business transition, credible target.
A group of 27 shareholders, holding around 5% of the company's shares, Shell, tabled an independent resolution urging the energy company to set more stringent climate targets, marking one of the largest efforts of its kind yet.
The resolution, led by activist shareholder Follow This, will be put to a vote at the company's annual general meeting Shell later this year, highlighting investors' desire for significant changes to the company's climate policy.
Investors Pressure Shell for More Ambitious Climate Targets
The group of investors, which collectively holds about $4,8 trillion under management, includes Amundi, Morgan Stanley, Scottish Widows, UBS, Rathbones Group and Edmond de Rothschild Asset Management, Follow This said in a statement.
Independent Resolution Urges Shell to Align Climate Goals with Paris Agreement
The resolution, which follows the line of previous Follow This resolutions, puts pressure on the energy company Shell to align its energy reduction targets carbon emissions with the Paris Climate Agreement, including emissions from fuels burned by consumers, known as Scope 3 emissions.
Shell's Continued Effort to Reduce Emissions and Increase Investment in Renewables
Shell currently aims to halve emissions from its operations by 2030 and reduce the intensity of its global emissions, including Scope 3. The company is also increasing its investments in renewable energy and fossil fuel production cleaner.
Challenges Faced by Shell at the Last Annual General Meeting
Last year, the Follow This resolution won the support of 20% of shareholders at the end of a noisy AGM where protesters tried to storm the stage. This reflects the growing pressure on Shell to commit to more ambitious climate targets.
The Importance of Setting Credible Scope 3 Emissions Targets
‘We ask Shell to establish a credible goal of absolute Scope 3 emissions. This would demonstrate lead, would show that Shell is serious about transitioning its business and playing a role in driving change in the real world,' said Diandra Soobiah, head of responsible investment at British pension plan NEST.
Shell's Response and Goals Aligned with the Paris Agreement
Shell said in response that its climate goals are in line with the 2015 Paris agreement to limit climate change. global warming to ‘well below’ 2 degrees Celsius above pre-industrial levels by 2100. The company argues that it is committed to mitigation and the climate changes and with the transition to a more sustainable economy.
Shell Transparency in the Energy Transition and Climate Strategy
'O Medical Counsel of Shell has already advised shareholders that the Follow This resolution was unrealistic and simplistic, that it would have no impact on mitigating climate change, would have negative consequences for our customers and was against the interests of the company and our shareholders,' Shell said in communicated. Sawan, who took the helm in January 2023, said last year that Shell is changing its 'path' to fulfill its ambition to become a net-zero carbon company by 2050.
Shell Strategy Update and Net Zero Emissions Commitment
Shell will publish its first energy transition strategy update in early 2024, which will be put to a consultative vote at the Annual General Meeting, it said. This demonstrates the company's commitment to being transparent and accountable regarding its climate strategy and the transition to a low-carbon economy.
(Reuters – Reporting by Ron Bousso; Editing by Sharon Singleton)
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