Shell SHEL.L shareholders have rejected a resolution filed by a group of investors urging the energy company to set tougher climate targets. The vote came after Shell CEO Wael Sawan weakened a 2030 carbon reduction target in March, citing expectations for strong gas demand and uncertainty in the energy transition, while focusing on more profitable operations, mainly in oil and gas.
The investor resolution received 18.6% support from shareholders in preliminary results, while a separate resolution from Shell’s board on its climate strategy won 78.2% support. Shell’s chairman, Andrew Mackenzie, stated that the company believes continued investment in oil and gas will be needed and that oil will play a vital role for a long time to come.
The meeting was disrupted several times by climate protesters, who chanted “Shell kills” and held a demonstration outside the meeting. The resolution was filed by activist shareholder Follow This and backed by a group of 27 investors that collectively have around $4 trillion under management. It urged Shell to align its medium-term carbon emissions reduction targets with the Paris Climate Agreement, including emissions from fuels burnt by consumers.
Oil majors have come under increased investor pressure to focus on their most profitable businesses after reporting bumper profits in recent years, while returns from renewables have slumped. Scientists say the world must cut greenhouse gas emissions by around 43% by 2030 from 2019 levels to stand any chance of meeting the 2015 Paris Agreement goal of keeping warming well below 2 degrees Celsius (3.6 degrees Fahrenheit) above pre-industrial levels.