Shell AGM Backs Board, But Vote Unresounding

A quarter of Shell shareholders voted against the company’s pay plan at its AGM in The Hague earlier on May 22. But it was a climate change resolution that had Shell most worried.

Resolution 19, tabled by a shareholder, had called on Shell to set targets to reduce greenhouse gas (GHG) emissions compatible with the objectives of the Paris Agreement in order to limit global warming to a maximum of 2 degrees Celsius compared to the pre-industrial era.

Shell prior to the meeting declared the resolution was “the best interests of the company” and urged shareholders to defeat it. They so did by 94.46%, but a relatively high 5.54% voted in favour. 

Swiss fund Ethos, which supported the resolution, had said that if investors are to engage GHG-intensive companies, rather than divest their stocks, then ambitious actions like this were crucial. However Shell told investors pre-AGM that, as an interim step by 2035, it aims to reduce its net carbon footprint by around 20%, ahead of cutting to 50% by 2050, and that it is already investing in New Energies.  

Votes backing Shell’s remuneration report were 74.78% in favour, but a substantial 25.22% against. All other resolutions were carried in Shell’s favour by more than 96% of votes.