Energy company Shell announced the publication of its Energy Transition Strategy, presenting the company’s plan to achieve net zero emissions by 2050 to shareholders for an advisory vote at its upcoming AGM.
In the strategy’s introduction, Shell CEO Ben Van Beurden said:
“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 temperature goal of the Paris Agreement and the global drive to combat climate change. It is a strategy that we believe creates value for our shareholders, our customers and wider society.”
With the announcement, Shell becomes the first major energy company to bring its energy transition strategy to a shareholder vote. While the vote is advisory and not binding on shareholders, the move marks a significant step forward on climate transparency and accountability on the company’s part, and brings Shell in line with a emerging movement among companies and investors to include shareholders in corporate sustainability plans. Shell stated that the decision to bring the strategy to shareholders follows continuing engagement with shareholders, including with climate-focused investor engagement initiative Climate Action 100+.
The strategy contains detailed plans of the company’s targets and actions to reduce emissions and promote a net zero future, including short-, medium-, and long-term emissions reduction goals, the company’s decarbonization strategy and milestones, and its capital allocation plans. The strategy also includes commitments by the company to engage with governments to support the policies and regulatory frameworks to accelerate the transition to net zero and to support the goals of a Just Transition.
The strategy also encompasses climate governance initiatives, including a decision by the company to increase the weight associated with GHG emissions management in determining the annual bonus levels employees and members of the Executive Committee.
Van Beurden added:
“This is a critical time in the world’s efforts to tackle climate change. It is also a time of tremendous opportunity for Shell. By transforming our business in line with our energy transition strategy, we will contribute to achieving a net-zero emissions energy system, help society reach its climate goals and create a compelling investment case for our shareholders, today and in the future.”
Click here to view the Shell Energy Transition Strategy.