 has come out as being critical of Shell's (LON:RDSB) efforts to tackle climate change.){kind=link}
Shell loses vote over climate plans at AGM
Legal & General Investment Management (LGIM), one of the UK’s largest fund managers, has come out as being critical of Shell’s (LON:RDSB) efforts to tackle climate change.
At Shell’s AGM last week, LGIM voted against the FTSE 100 oil giant’s energy transition strategy.
The fund manager told the Guardian that it was standing alongside activists as it does not buy the credibility of Shell’s plan.
Although LGIM did say that some progress was being made. “We remain concerned that the strength of interim targets (up to 2035) and disclosed plans for oil and gas production fall short of the level of ambition required for the company to credibly claim alignment with a 1.5C pathway,” the company said.
At the recent AGM, a resolution put forward by shareholders called the oil company to do more to address climate concerns by setting binding emissions targets received 30% of the vote. Among the voters in favour was LGIM.
The result builds further pressure on Shell and now means the oil giant will be required to consult shareholders and report on their views within six months.
The resolution was put forward by Follow This, a campaign group that uses activist investment that pressures oil companies to reduce their emissions in line with the limits set by the 2015 Paris climate agreement.
“This is really a very strong signal to the board of Shell that their current targets are not sufficient to reach the [aims of the] Paris climate agreement. That is what investors one by one are realising,” said Mark van Baal, the founder of Follow This.