Investors back Shell’s climate strategy amid disruption from activists

Investors back Shell’s climate strategy amid disruption from activists

by Pranali Mehta

Shareholders have reportedly backed oil giant Shell’s climate strategy during a meeting that took place earlier this week, which was disrupted by dozens of climate protestors.

Meanwhile, a climate activist proposal from green group, Follow This, got fewer votes than it did the previous year. The organization has shareholders in every major oil and gas firm including BP and Equinor.

The news follows a Dutch court ruling made last year which told the firm in absolute terms that it is to reduce its greenhouse gas emissions by 45% over the complete lifecycle of its hydrocarbons by 2030.

For the uninitiated, Shell is targeting net-zero greenhouse gas emissions by 2050, including those from burning fuels as well as from the other products it sells.

However, the fossil fuel giant has appealed the Dutch court ruling and stated that it cannot take responsibility for the emissions released from its products while being used by customers.

The firm stated that its targets also support the Paris climate accord, wherein scientists said that global emissions need to be cut down by around 40% by 2030.

As per the final result of the vote taken during the meeting, Shell’s climate resolution received 80% votes this year, while Follow This received 20%. Last year, Shell received 89% votes while Follow This got 30%.

Critics including Follow This stated that Shell’s spending does not indicate its targets and that its plans for cutting emissions from the oil well to the car exhaust will fall short, both by 20% by 2030 and by 45% by 2035.

Mark van Baal, founder, Follow This, stated that investors have accepted Shell’s narrative that the Ukraine war takes priority over the climate crisis.

Baal added that both of the crises must be tackled simultaneously by shifting investments to renewables.

The majority of Shell’s targets are being measured in terms of intensity instead of absolute terms. Its total emissions can also increase due to a rise in the production of oil and gas, but the intensity can be decreased with various methods, such as increasing renewables generation.

While the firm's spending plans are inclined toward oil and gas mostly, it aims to increase spending on low-carbon energy to around 25% by 2025.

Source credit: https://www.reuters.com/business/environment/climate-protestors-disrupt-shell-shareholder-meeting-2022-05-24/

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...