Shell has tricked investors into thinking profitability is at risk

- Advertisement -spot_imgspot_img

Investors have missed an opportunity to force oil and gas group Shell to reduce CO2 emissions more quickly. This is what Mark van Baal of Follow This says, a group of activist investors who have been trying to make Shell more sustainable for some time. A minority of 20 percent voted in favour, the same number as last year. ‘We have to work with that one-fifth to convince the other 80 percent.’

According to Van Baal, a wrong choice was made by the shareholders. Many investors thought they had to choose between profit and climate. But they have to choose between change or stagnation,’ he says. ‘Apparently Shell has been able to trick investors into thinking that profitability is at risk.’

The outcome of the vote can partly be explained by the voting advice of influential voting advisers such as Glass Lewis, who advised simply to vote with Shell. Very unfortunate, says Van Baal. ‘We still have nothing on our side with those big voting consultancies. They still can’t look beyond a quarter instead of ten or twenty years.’

However, Follow This’s question is ‘very reasonable’, he thinks. ‘Participate in the Paris climate agreement and reduce your CO2 emissions.’ And that is in the interest of the shareholders. ‘They have an interest in the global economy continuing to run and not being pushed to the limits by climate change.’

In that climate agreement, it was agreed to keep global warming well below 2 degrees. Shell invests billions in low-carbon energy sources, but about two-thirds of the expenditure still goes to gas and oil projects. At the same time, Shell believes that its goal of being climate neutral by 2050 is already in line with the Paris climate agreement.

tumult

The meeting was disrupted by activists storming the stage. According to Van Baal, these were ‘peaceful activists who make a lot of noise’. There was no harm in the sense. “I don’t think they really wanted to hurt the board, but these people are genuinely angry.” That anger shows a ‘total gulf’ between angry shareholders and those at the board table who don’t understand the anger.’

The climate activists want Shell to lay down its climate policy, but the oil giant would rather continue to pursue its own policy.
The climate activists want Shell to lay down its climate policy, but the oil giant would rather continue to pursue its own policy. (ANP / Zuma Press)

- Advertisement -spot_imgspot_img
Latest news
- Advertisement -spot_img
Related news
- Advertisement -spot_img