Ahead of Shell’s AGM later this month, CA100+ investors have come out in support of a climate resolution that asks the company to align its Scope 3 emissions targets with the Paris Agreement.
MN and PGGM, which lead CA100+’s engagement with Shell, have pre-declared their votes and flagged the climate resolution in the CA100+ alliance, the world’s largest investors’ coalition against the climate crisis (700 investors with $68trn assets under management).
“Although Shell is a front-runner among oil and gas companies, there is insufficient evidence that the company’s current strategy is aligned with a 1.5°C warming pathway, which requires a significant decrease in oil and gas production and increase in the supply of low carbon solutions. No independent, third-party source shows that Shell is Paris aligned in 2030,” PGGM said.
“The adoption and implementation of this resolution will reduce the risk of stranded assets and/or increase the opportunities afforded by the energy transition.”
The resolution is designed to align Shell’s mid-term targets with the Paris Agreement, rather than implement absolute emissions targets. This allows Shell to either cut hydrocarbon production further or increase its low-carbon targets.
Follow This, which filed the resolution, hopes MN and PGGM will influence others to vote in favour of the resolution at the AGM on 23 May.
Mark van Baal, founder of Follow This, added the voting results will be “a litmus test for the credibility of the CA100+”.
Last month CA100+ lead investors LGIM, Fulcrum, and EOS at Federated Hermes voted against the same climate resolution at BP, which was supported by 17% of shareholders.