In February, Shell proposed a non-binding resolution that aims to reduce carbon emissions to net-zero by 2050. The plan includes growing the company’s renewables and low-carbon business, gradually cutting oil and gas production, and using carbon capture technologies and reforestation to offset its emissions. Under the plan, Shell proposes to grow investment in low-carbon energy while keeping 75% of total spending on its oil and gas businesses. This plan received an overwhelming 88.74% supporting vote from the company’s shareholders.
Activist group Follow This also submitted a second resolution which urged the Anglo-Dutch company to abandon intensity-based carbon reduction targets in favour of absolute reduction targets. Shell has asked shareholders to reject the proposal, with CEO Ben van Beurden saying that setting absolute reduction targets would allow competitors to replace Shell’s unwinded oil and gas businesses. Follow This’ resolution was rejected by 69.53% of the votes, but it represents increasing support from 14.4% for a similar proposal last year.
Follow This also proposed further emission reduction targets by BP last week, which was rejected by the majority of the company’s shareholders. Nevertheless, it received 20.6% of votes, indicating growing investor pressure for further climate action.
