Shell shareholders to vote on zero-carbon strategy
Sustainalytics, an ESG research ratings and data provider owned by Morningstar, reports that Royal Dutch Shell’s May 18 AGM agenda includes an advisory vote on the company’s “Energy Transition Strategy,” which sets a goal of net-zero emissions by 2050.
This ultimate target is preceded by several intermediate targets to reduce the firm’s scope 1-3 net carbon intensity, relative to 2016 levels. Going forward, shareholders will have a triennial advisory vote on the updated strategy and an annual advisory vote on the firm’s progress toward that strategy. The board nevertheless opposes a separate shareholder proposal calling for Paris-aligned emissions reduction targets, describing this resolution as “unnecessary” in light of its own proposal. In order to align executive incentives with these targets, Shell will link executive bonuses to a 15%-weighted “progress towards energy transition” criterion and retire a performance criterion measuring production and LNG liquefaction volumes. Shell has adopted a multipronged approach to reaching these targets, citing all of the following as 2030 milestones: operational efficiency, low-carbon power, carbon capture and storage, a shift toward natural gas, low-carbon fuels, and natural carbon sinks.
Shell’s Energy Transition Strategy document can be accessed here.
Published 29 April, 2021