Shell SHEL-N shareholders should support a climate activist resolution at its annual general meeting and vote against the oil major on most counts, Britain’s Local Authority Pension Fund Forum (LAPFF) recommends in a report seen by Reuters.
This follows announcements by the Church of England Pension Board, proxy adviser PIRC and a number of Dutch funds in favour of the climate resolution proposed by activist group Follow This.
Influential shareholder advisories ISS and Glass Lewis recommended a vote against the resolution asking for stronger 2030 emissions-cutting targets while ISS accepted that the Follow This arguments had merits. Shell had asked shareholders to oppose the resolution at the May 23 meeting.
“We strongly disagree with the positions against Shell voting recommendations taken by PIRC, the LAPFF, PGGM, MN and the Church of England Pensions Board,” a Shell spokesperson said.
“We trust a vast majority of shareholders will agree on the need to collaborate in balancing the supply and use of energy to accelerate the energy transition, while reducing the social costs, and we are pleased that ISS and Glass Lewis concur.”
LAPFF, which says it represents 350 billion pounds ($441.74 billion) of U.K. local authority pensions, recommended votes against Shell’s directors’ pay resolutions, its energy transition plan and most directors, apart from its Chair.
“Given that 2030 is further away than the tenure of most executives and non-executive directors, the incentive framework to deliver a credible transition requires an overhaul, as does the board,” LAPFF said.
At Shell’s 2022 shareholder meeting, Follow This received 20% of votes, down from 30% the previous year.
Shell will hold an investor day in June, at which it will provide details on its updated strategy. Shell said its target of reducing emissions to net zero by 2050 remained unchanged and that it continues to invest in low-carbon energy.