Shell shareholders vote against climate resolution

Nearly all shareholders of Shell voted against a resolution by action group Follow This on Tuesday. The resolution called on Shell to impose stricter environmental targets. Almost 95 percent of the cast votes were against the resolution, ANP reports.

The board of the oil- and gas giant strongly advised its shareholders to vote against the resolution. According to Shell CEO Ben van Beurden, new measures are unnecessary because Shell already does a great deal for the switch to environmentally friendly energy sources. The Shell board also believes that the resolution would impose too many restrictions on the company, which would come at the expense of the company's competitive strength.

Follow This received support from insurer NN, who voted in favor of the resolution. According to the insurer, the objectives in the resolution are "a good way to stay on course in the energy transition".

Pension fund ABP abstained from voting. "ABP think it's premature to demand that Shell already reviews its ambition, as the resolution demands", the shareholder said on Tuesday, according to the news wire. ABP added that the Shell board should be held accountable if the environmental targets are not met. "Although Shell recently presented its ambition on climate policy, we unfortunately still do not see sufficient incentives for top management to achieve this ambition", ABP chairman Corien Wortmann said.

Environmental group Millieudefensie criticized the outcome of the vote. According to the group, the results mean that Shell does not have to adhere to the climate agreement. Last month Milieudefensie announced that it is filing a lawsuit against Shell in an effort to force the Dutch oil and gas company to adjust its policy to prevent further damage to the climate.