* Activist resolution wins 30% support at AGM
* Investors ramped up pressure on Shell to tackle climate
(Adds details, quotes)
By Ron Bousso
LONDON, May 18 (Reuters) - Royal Dutch Shell
shareholders overwhelmingly backed the company's energy
transition strategy on Tuesday, but increased support for a
second climate resolution filed by an activist group pointed to
growing pressure to tackle climate change.
A non-binding resolution submitted by Shell with the support
of a large group of investors to vote on its recently unveiled
climate strategy won 88.74% shareholder support at its annual
general meeting (AGM) which was held online.
The plan, announced in February, aims to reduce
planet-warming carbon emissions to net zero by 2050 by slowly
reducing oil and gas output, growing its renewables and
low-carbon business and offsetting emissions through carbon
capturing technologies and measures such as forestation.
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Shell CEO Ben Van Beurden said at the AGM that the strategy,
which will be updated every three years, was "comprehensive...
rigorous and... ambitious."
The vote comes on the same day the International Energy
Agency (IEA) said investors should halt funding for new oil, gas
and coal supply projects if the world wants to reach net zero
emissions by 2050.
Shell plans to grow its investment in low-carbon in the
coming years, but at least 75% of its spending will continue to
go towards oil and gas.
ABSOLUTE REDUCTION
A second resolution filed by activist group Follow This
urging the Anglo-Dutch company to set "inspirational" targets to
battle greenhouse gas emissions, was rejected by 69.53% of the
votes, according to a tally of most votes.
Still, the nearly one-third of votes supporting the
resolution, which Shell's board urged shareholders to reject, is
a sharp increase from last year's vote where a similar
resolution won 14.4% support.
Several investors, proxy advisories and activist groups
including Follow This have criticised Shell for setting
intensity-based carbon reduction targets, which allow Shell in
theory to grow its emissions, rather than absolute reduction
targets.
Shell CEO Ben van Beurden however said setting absolute
reduction targets would mean Shell will have to unwind its oil
and gas business, which would be replaced by other producers.
Follow This director Mark van Baal told Reuters the vote
"tells the board that investors don't accept long-term targets
without short and medium-term targets. You need to decrease
emissions dramatically and shift investments dramatically in the
next decade."
In a statement following the vote, the Church of England
Pension Board, which led the investor talks with Shell on its
strategy, welcomed the support for the plan and also urged Shell
to set short and medium-term targets to reduce emissions in
absolute terms.
Adam Matthews, Director of Ethics & Engagement for the
Church of England Pensions Board said at the AGM that if Shell
doesn't meet its 2023 targets the fund would divest its stake in
Shell.
Last week, BP investors rejected a Follow This
resolution demanding tougher emission reduction targets, which
nevertheless was supported by 20.6% of votes, pointing to
growing investor pressure.
(Reporting by Ron Bousso, editing by Louise Heavens and David
Evans)
BP (BP.)
