On the eve of its Annual General Meeting (AGM), oil giant Royal Dutch Shell has seen its proposed energy transition strategy faulted.
Shareholder advisory PIRC recommended investors vote against Shell’s non-binding resolution because the firm’s strategy to cut emissions “does not seem to have a clear plan for the competitive aspects of the energy transition.”
PIRC, which advises investors managing over 1.5 trillion pounds ($2.12 trillion), said Shell’s climate resolution lacked individual accountability for the board and does not list the chairman as responsible for the strategy.
In response, Shell insisted it would focus on its detailed strategy – which would:
- Double the generation of electricity, triple its share of final energy
- Shift the electricity mix to 75% renewables, no coal
- Target 10% hydrogen in final energy, including as a fuel
- for heating, industry and heavy transport
- Triple the use of biofuels, with a shift to advanced forms.
So far the Anglo-Dutch energy firm has the support of major investors that are part the Climate Action 100+ group.
Shell set a target to become a net-zero emissions energy business by 2050, in step with society’s progress in achieving the goal of the Paris Agreement on climate change.
It says this target supports the more ambitious goal of the Paris Agreement: to limit the increase in the average global temperature to 1.5°C above pre-industrial levels.