Nearly one in five shareholders at the Shell AGM have protested its stance on climate targets, urging the company to align with the Paris Agreement.

Investors urged Shell to improve its climate targets by voting in favour of the Follow This climate resolution (item 23). Moreover, 22 per cent voted against Shell’s watered-down strategy (item 22). The investors follow a group of 27 peers who co-filed the resolution that supports the company to align its medium-term emissions reduction targets with the Paris Climate Agreement.

“Shell cannot continue ignoring these investors, 19 per cent represents a shareholder rebellion as 99 per cent of shareholders typically vote with management,” explained Mark van Baal of Follow This.

The 27 leading investors who filed the climate resolution alongside Follow This are largely to thank for the votes, according to Van Baal: “We thank our 27 co-filers for their commendable leadership and courage in speaking out. Their steadfast support has been a significant contribution to maintaining shareholder pressure.”

Ahead of the AGM, several other investors predeclared their vote in favour of the resolution. As Climate Action 100+ engagement lead at Shell, Dutch asset manager MN published their intention to support the resolution. It appears other signatories of the CA100+ coalition have voted in support of their engagement lead.

The voting result is significant because this was the only Paris-aligned targets resolution on the ballot at any of the big five oil majors this year. Other oil and gas companies will look to see what happens at Shell. Van Baal: “Today investors have sent a ripple through the entire industry, as more shareholders are asking an oil major to be Paris aligned.”

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