Lapff Urges Shell Shareholders To Support Climate Activist’s Resolution

LONDON, May 11 - Shell (SHEL.L) shareholders should support a climate activist resolution at its annual general meeting and vote against the oil major on most counts, Britain's Local Authority Pension Fund Forum (LAPFF) recommends in a report seen by Reuters.

This follows announcements by the Church of England Pension Board, proxy adviser PIRC and a number of Dutch funds in favour of the climate resolution proposed by the activist group Follow This.

Influential shareholder ISS recommended a vote against the resolution asking for stronger 2030 emissions-cutting targets at the May 23 meeting while accepting it had merits. Shell had asked shareholders to oppose the resolution.

LAPFF, which says it represents 350 billion pounds ($441.74 billion) of UK local authority pensions, recommended votes against Shell's directors' pay resolutions, its energy transition plan and most directors, apart from its Chair.

"Given that 2030 is further away than the tenure of most executives and non-executive directors, the incentive framework to deliver a credible transition requires an overhaul, as does the board," LAPFF said.

At Shell's 2022 shareholder meeting, Follow This received 20% of the votes, down from 30% the previous year.

Shell will hold an investor day in June, at which it will provide details on its updated strategy. Shell said its target of reducing emissions to net zero by 2050 remained unchanged and that it continues to invest in low-carbon energy.