# Shell shareholders urged by LAPFF to back climate activist’s resolution
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-11
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Shell Shareholders Urged to Vote for Climate Activist
Meta Description: Get insights on the recommendations by Britain's LAPFF and influential shareholder advisories at Shell's annual general meeting.
URL: https://financedigest.com/shell-shareholders-urged-by-lapff-to-back-climate-activists-resolutionhtml

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By Shadia Nasralla

LONDON (Reuters) – Shell 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 the Church of England Pension Board, proxy adviser PIRC and a number of Dutch funds in favour of the climate resolution proposed by activist group Follow This.

Influential [shareholder advisories ISS and Glass Lewis recommended a vote](https://www.financedigest.com/most-twitter-shareholders-vote-in-favor-of-sale-to-musk-sources.html "Most Twitter shareholders vote in favor of sale to Musk-sources") against the resolution asking for stronger 2030 emissions-cutting targets while ISS accepted that the Follow This arguments had merits. Shell had asked [shareholders to oppose the resolution at the May 23 meeting](https://www.financedigest.com/climate-activists-take-aim-at-barclays-stanchart-shareholder-meetings.html "Climate activists take aim at Barclays, StanChart shareholder meetings").

We strongly disagree with the positions against Shell [voting recommendations taken by PIRC](https://www.financedigest.com/pirc-recommends-vote-for-bp-climate-activist-resolution.html "PIRC recommends vote for BP climate activist resolution"), the LAPFF, PGGM, MN and the Church of England Pensions Board,” a Shell spokesperson said.

We trust a vast majority of shareholders will agree on the [need to collaborate](https://www.financedigest.com/why-finance-needs-to-collaborate-to-get-rid-of-internal-worries.html "Why finance needs to collaborate to get rid of internal worries") in balancing the supply and use of energy to accelerate the energy transition, while reducing the social costs, and we are pleased that ISS and Glass Lewis concur.

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](https://www.financedigest.com/progressive-scenario-planning-for-the-libor-transition.html "Progressive scenario planning for the LIBOR transition") and most directors, apart from its Chair.

Given that 2030 is further away than the tenure of most [executives and non-executive directors](https://www.financedigest.com/fiat-republic-the-specialist-baas-platform-that-bridges-web3-and-banks-announces-the-appointment-of-two-industry-experts-as-non-executive-directors-to-the-board-of-its-dutch-subsidiary.html "Fiat Republic, the specialist BaaS platform that bridges web3 and banks, announces the appointment of two industry experts as Non-Executive Directors to the board of its Dutch subsidiary."), 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 votes, down from 30% the [previous year](https://www.financedigest.com/glastons-interim-report-1-january-31-march-2018-orders-received-grew-23-comparable-operating-profit-at-previous-years-level.html "Glaston’s Interim Report 1 January – 31 March 2018: Orders received grew 23%, comparable operating profit at previous year’s level").

Shell will hold an [investor day](https://www.financedigest.com/british-pound-drops-as-investors-seek-safety-on-freedom-day.html "British pound drops as investors seek safety on ‘Freedom Day’") in June, at which it will provide details on its updated strategy. Shell said its [target of reducing emissions](https://www.financedigest.com/greenpeace-germany-sues-volkswagen-over-carbon-emissions-targets.html "Greenpeace Germany sues Volkswagen over carbon emissions targets") to net zero by 2050 remained unchanged and that it continues to invest in low-carbon energy.

($1 = 0.7923 pounds)

(This story has been refiled to fix typographical error in the spelling of PGGM in paragraph 4)

(Reporting by Shadia Nasralla; Editing by David Goodman)


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