One-in-five shareholders backed a Follow This shareholder resolution at Shell’s AGM earlier today, with a similar number voting against its energy transition progress update. The shareholder resolution from Follow This called on the oil and gas major to strengthen its goals for reducing greenhouse gas (GHG) emissions. However, shareholders rejected the resolution with it receiving 20.2% of the vote, according to a preliminary count from the company. Follow This said the vote represented a missed opportunity for investors, with Founder Mark van Baal commenting: “We have made it easy for investors to use the power of their votes, but many investors have yet to decouple short-term profits from long-term risks for the company”. However, he asserted that the shareholder resolution, despite being rejected by the majority of shareholders, “clearly indicates shareholder discontent”. Shell Chairman Andrew Mackenzie was up for re-election at the AGM, with 93% of votes cast in favour of renewing his appointment. There was also a vote on the company’s executive pay, with 5.3% of shareholders voting against the directors’ remuneration policy. The Church of England Pensions Board (CoE PB) voted against the re-election of all Shell directors and voted in support of the Follow This resolution. CoE PB said the oil and gas major’s capital expenditure into renewables and low carbon energy remains “far lower than would be expected by a company seeking to shape a future in the transition”, which it labelled as “deeply concerning”.
Investors miss the opportunity to urge Shell to drive down emissions by 2030 as votes for the Follow This climate resolution fall stagnant at 20% (20% voted in favour in 2022), Shell announced at its AGM today.
— Follow This (@followthis2015) May 23, 2023