Shareholders Demand Stronger Climate Commitment From Oil Giant Shell

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โ€œI do believe in 2 degrees, but I do not believe I can do it on my ownโ€. The words that Shellโ€™s chief executive Ben van Beurden used at Tuesdayโ€™s annual shareholder meeting mirror the companyโ€™s โ€˜could do, wonโ€™t doโ€™ attitude to limiting globalย warming.

Shellโ€™s chairman Charles Hollidayย described their management of the energy transition after the Paris climate change conference as โ€œso far so goodโ€ despite a page one disclaimer in their latest report saying they have no plans to use their pathway to net zero in their next 10-20 year investmentย horizon.

As van Beurden said in response to a shareholder question: โ€œMy expectation that oil will be phased out in 2070 is actually quite arbitraryโ€ going on to say oil and gas could still be relevant untilย 2100.

Louise Rouse, a capital markets campaigner who attended the annual general meeting (AGM), explained that despite Shellโ€™s positive rhetoric, their actions are still at odds with the investorย statements.

And RobecoSAM, a specialist in sustainability investing, said that it was โ€œnot entirely convincedโ€ that Shell had integrated climate change into its strategy and argued that โ€œShell needs to show more leadership than it currentlyย doesโ€.

A coalition of 31 investors with over $5 trillion invested in Shell requested โ€œgreater clarity from Shell on specific elements of climate risk reporting and strategy in alignment with a low-carbonย futureโ€.

The board said that they looked forward to continuing dialogue with theย group.

A resolution was also brought forward by Follow This, a group of green Shell shareholders, asking the oil major to become a renewable energyย company.

However, this was overwhelmingly rejected with less than three percent of investors voting in favour โ€“ this comes after news earlier this month that Shell has established a New Energies division to invest in renewable and low-carbon power (New Energies will be run alongside Shellโ€™s Integrated Gasย division).

In response to the renewables resolution van Beurden said: โ€œWe cannot do it overnight [transition to renewables] because it could mean the end of theย company.โ€

โ€œIt will take an unprecedented amount of effort to bring about a net zero emissions future,โ€ he said, adding โ€œif collectively we find a way to stay within the 2 degree [limit], we will still need significant investment in oil and gasโ€ฆ I am talking about up to a trillion dollars everyย year.โ€

Photo: Shell viaย Flickr

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Originally from Manchester, Will moved to London to study a Masters in Environmental science, law & policy. For the last three years he has worked for an international development think tank, the Overseas Development Institute, in various communications positions. Will began contributing to DeSmog UK in Aprilย 2016.

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