The Strategist

Group of 27 investors urges Shell to set tougher climate targets

01/18/2024 - 02:36

A group of 27 Shell shareholders pressured the oil and gas company at its annual general meeting to raise the bar on its emissions reduction commitments, writes the Financial Times.

Vladislav Bezrukov
Vladislav Bezrukov
The investors are pressuring Shell to align its medium-term greenhouse gas reduction plans with the Paris Climate Agreement, with coordination from the climate group Follow This.

Shell contends that the organization's goals already correspond with these standards. However, according to shareholders, Shell ought to account for emissions from goods that are marketed to consumers (Scope 3).

The shareholders group includes the asset managers Rathbones, Candriam and Edmond de Rothschild, and Ethos Foundation, which represents Swiss investors, as well as the biggest asset management company in Europe, Amundi, among others. According to the FT, they jointly oversee assets worth over €3.8 trillion and hold almost 5% of Shell.

Follow This organization has been planning similar events for Shell shareholder meetings since 2016; the greatest number of investment managers have endorsed it this year.