WASHINGTON, Jan 29 (Reuters) - In a rare move, oil majorShell on Thursday backed a resolution proposed by activistinvestors to force the company to recognize climate change risksby improving its transparency.
Shell's executive vice president of investor relations JJTraynor said the company would urge shareholders to vote for theresolution at the annual general meeting in May.
The announcement coincided with Shell saying Thursday thatit would cut $15 billion in spending but continue to drill inAlaska's Arctic.
The resolution was filed by the Aiming for A coalition of UKinvestors representing close to £200 billion ($300 billion) inassets and calls on Shell to disclose additional information infive areas related to climate change in its annual reportingfrom 2016.
The group said in the resolution it was concerned about the"longer term success of the company, given the recognized risksand opportunities associated with climate change."
The resolution requests more information on the company'soperational emissions management, the resilience of its assetsto climate change, low-carbon energy research and developmentand investment strategies, relevant key performance indicatorsand its public policy positions on climate change.
Shell said the company will provide the additionaldisclosures in its next annual report.
With global oil prices falling around 60 percent since June,public interest and shareholder groups have been warning energyfirms about the financial and climate risks of investment incarbon-intensive fossil fuel projects.
ConocoPhillips, which previously announced plans to cut 2015spending by 20 percent in December, announced Thursday it wouldslash a further $2 billion in spending. South Africa's Sasolalso announced it would shelve an $11 billion gulf coastgas-to-liquid plant.
Andrew Logan, an analyst at sustainability-focused investorgroup Ceres, said such moves by a company to recommend anactivist group's resolution is rare and reflects the pressureplaced on Shell to address climate change.
Logan said, however, that Shell is likely to face moreinvestor scrutiny because of its decision to move ahead ondrilling in Alaska's Arctic.
"Investors will be watching closely to see how the companyexplains that decision in light of the concerns raised in theshareholder proposal that Shell itself now says it supports,"Logan said.
Barrister Elspeth Owens of shareholder group ClientEarth,which assisted with the filing of the resolution, said the Shelldecision "throws down the gauntlet for BP," which received thesame resolution by Aiming for A earlier in January.
£1 =$1.50 (Reporting By Valerie Volcovici; Editing by Grant McCool)
