Significant Opposition to Climate Strategy
During Shell’s annual general meeting (AGM) in London, more than 20% of shareholders voted against the company’s current climate strategy. This significant opposition highlights growing discontent among investors about Shell’s environmental commitments. Protests from various activist groups further underscored the tension, drawing attention to Shell’s climate record and its controversial actions in the Niger Delta.
Rejection of Follow This Resolution
Shareholders also voted down a climate resolution proposed by the activist group Follow This, which advocates for oil and gas companies to align their targets with the Paris Agreement. Nearly 19% of voters supported this resolution, which called for Shell to set more ambitious decarbonization goals. Despite this being a slight decrease from last year’s 20.2%, Follow This emphasized that the near 19% support represents a significant “rebellion” against the company’s current policies.
Protests and Disruptions During AGM
Protesters disrupted the AGM with chants of “Shell kills,” reflecting widespread dissatisfaction with Shell’s environmental impact and alleged human rights abuses in Nigeria’s Niger Delta. Activists from groups like Extinction Rebellion UK and the Climate Justice Coalition interrupted the proceedings, emphasizing the urgency of climate action. A notable moment occurred when a woman addressing the board about Niger Delta issues was initially interrupted by security, prompting the chairman to intervene and allow her to continue speaking.
Emphasis on Net Zero by 2050
In his opening remarks, Shell Chairman Sir Andrew Mackenzie reaffirmed the company’s commitment to achieving net zero emissions by 2050. He argued that oil and liquefied natural gas will remain essential during the transition to a more sustainable energy system. Mackenzie cautioned against prematurely ending the use of oil and gas, citing the energy needs of a growing global population.
Shareholder Questions and Executive Responses
During the shareholder Q&A session, Follow This founder Mark van Baal challenged Shell’s board to explain how their strategy aligns with the Paris Agreement without significantly reducing emissions by 2030. Shell’s CEO Wael Sawan defended the company’s approach, asserting that their strategy aligns with the most ambitious scenarios outlined in the IPCC’s assessment report. Sawan urged shareholders to reject the Follow This resolution, claiming it would be detrimental to the environment, customers, and governance. Following the meeting, Sawan reiterated Shell’s commitment to delivering value while transforming into a net-zero emissions energy business by 2050.
SOURCE: Ref Image from Reuters
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