Shell on Thursday (today) issued its Energy Transition Strategy publication, which will be put to shareholders for an advisory vote at the company’s Annual General Meeting on May 18, 2021. This is the first time that an energy company has asked shareholders to vote on its energy transition strategy.
“As we transform our business, it is more important than ever for shareholders to understand and support our approach,” says Royal Dutch Shell Chief Executive Officer, Ben van Beurden, in his introduction to the publication.
“We are asking our shareholders to vote for an energy transition strategy that is designed to bring our energy products, our services, and our investments in line with the goal of the Paris Agreement and the global drive to combat climate change.”
This publication sets out the company’s target to achieve net-zero emissions by 2050, in step with society’s progress towards the goal of the Paris Agreement on climate change. It also describes Shell’s short- and medium-term climate targets, customer-focused decarbonisation strategy, capital allocation and approach to climate-related policy and advocacy.
The decision to seek an advisory vote was announced in February as part of Shell’s Powering Progress strategy, which aims to accelerate the transition of the company’s business to net-zero emissions, in step with society. It follows continuing engagement with shareholders, including with Climate Action 100+ which represents investors with assets of around $54 trillion.
The vote is purely advisory and will not be binding. Shell’s Board and Executive Committee remain responsible and accountable for setting and approving Shell’s energy transition strategy.
Shell said it will publish an update to its Energy Transition Strategy publication every three years until 2050. Every year, starting in 2022, it will also seek an advisory vote on its progress towards its plans and targets.