If Shell loses, it could be forced to shrink its hydrocarbons business.Īsset manager Federated Hermes' climate stewardship, which advises clients with around $1 trillion in assets, has recommended its members support the Follow This resolution at Shell's annual general meeting (AGM) on May 23, according to a document seen by Reuters. That resolution echoes a ruling by a Dutch court telling Shell to adjust its climate targets, which Shell has appealed. Many of the funds, which make up a small but increasingly vocal part of BP, Shell and TotalEnergies' shareholder bases, will also support - against the boards' recommendation - a shareholder resolution filed by activist group Follow This calling for tougher emission reduction targets by 2030.
In some cases, investors are getting personal, voting against the re-appointment of directors after largely supporting in recent years their efforts to gradually shift their century-old operations towards renewables. The shift has alarmed many climate-focused investors, who have issued rare public rebukes. In response, BP scaled back plans to cut its oil and gas output this decade, while Shell's Chief Executive Wael Sawan, who took office in January, indicated the British firm was reviewing a pledge to reduce oil output by 1-2% a year by 2030. rivals Exxon (XOM.N) and Chevron (CVX.N), in large part due to the European firms' greater focus on renewables and low-carbon businesses that deliver lower profits than oil and gas.Įxecutives at both Shell and BP have told Reuters in recent months that a growing number of major investors have pressed them to focus on returns, rather than energy transition plans, in the wake of the energy shock. Shares of European energy firms such as Shell, BP (BP.L) and TotalEnergies (TTEF.PA), however, underperformed U.S. The energy crisis temporarily eased pressure on the companies' efforts to slash greenhouse gas emissions as the focus shifted to securing more oil and gas supply.
Shell (SHEL.L) will likely face one of its most acrimonious annual meetings next week as it struggles to balance investor pressure to capture profits from oil and gas and a vocal minority saying it must move faster to tackle climate change.īig Oil firms posted record profits last year amid soaring energy prices following Russia's invasion of Ukraine. LONDON, May 18 (Reuters) - (This May 18 story has been corrected to show that MN, not PGGM, leads for Climate Action 100+ on TotalEnergies in paragraph 13)
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