Shell’s updated energy transition strategy receives shareholder approval on reduced emissions targets

(Bloomberg) – Shell Plc shareholders approved the company’s new energy transition plan with reduced carbon-emissions targets, while rejecting a resolution asking the oil and gas giant to align itself with the Paris Climate Agreement.

Shell’s updated energy transition strategy got the backing of 78% of shareholders at the company’s annual general meeting on Tuesday. Only 19% voted for the climate resolution, filed by activist shareholder Follow This and 27 investors — including Amundi SA, Europe’s largest asset manager — that jointly manage funds worth more than $4 trillion.

They wanted to see emissions targets outlined by the 2015 Paris accord. However, following Russia’s invasion of Ukraine and Europe’s subsequent energy crisis, concerns about security of supply have increasingly competed with climate change for investors’ attention.

“I’m very pleased with what we’ve got” in support from investors, Shell Chief Executive Officer Wael Sawan said on the sidelines of the meeting in London. “And I’m pleased that we have seen the Follow This resolution, get an even lower share of the votes compared to previous years.”

Shell last updated its energy transition in March, lowering some of its targets. The London-based major now aims to reduce its net carbon intensity by 15% to 20% by 2030, compared with a previous target of 20%.

It also dropped its goal of a 45% reduction by 2035 citing “uncertainty in the pace of change in the energy transition.” Those targets, which were measured against a baseline of emissions in 2016, received the backing of almost 89% of shareholders when they were last put up for a vote in 2021.