Major Investors team up with Climate Activist Follow This to Push Shell for Greenhouse Gas Emission Reduction

Funds managing over $4 trillion worth of assets have partnered with climate activist group Follow This to put pressure on Shell to reduce its greenhouse gas emissions. The coalition, which includes major asset manager Amundi, plans to co-file a shareholders’ resolution demanding that Shell align itself with the Paris Climate Agreement. This marks a more significant step than prior years when the investors supported resolutions proposed by Follow This. The resolution specifically targets Scope 3 emissions, which are generated when customers use Shell’s products and account for the majority of the company’s greenhouse gas footprint. The investors are urging Shell to align its medium-term Scope 3 reduction target with the Paris Climate Agreement’s goals to limit global warming to below 2 degrees Celsius above pre-industrial levels. Shell claims that its climate targets already align with the more ambitious goal of the Paris Agreement and expresses a commitment to engaging constructively with shareholders. The 27 investors participating in the filing collectively own around 5% of Shell stock. This collaboration with institutional investors represents a milestone for Follow This, which has experienced declining support for its shareholder resolutions in recent years. Shell has faced increased scrutiny from environmentalists and climate-conscious investors after increasing its investments in fossil fuels last year. The company seeks an advisory vote on the progress of its energy transition strategy annually, and an updated strategy will be presented at the upcoming annual general meeting in May.