“RLAM has decided to abstain on Shell’s climate transition plan. We acknowledge the considerable progress made in Shell’s climate efforts and the 2021 delivery, however, we cannot fully support the plan as it currently stands.
“In our view, there is not enough certainty in the plan that it aligns with the goals of the Paris agreement and the global necessary efforts to constraint temperature increases to below 1.5 degree Celsius. Our vote reflects RLAM’s upgraded Net Zero engagement strategy, triggered by our commitment to the Net Zero Asset Managers Initiative (NZAMI)1..
“Shell’s climate plan is heavily reliant on nature-based offsets and divestments. It also includes strategies to continue new oil and gas frontier exploration between now and 2025. We would prefer the company to stop all exploration imminently in line with the most recent IEA2 and IPCC3 reports. We will continue our engagement on those topics, as we would like to see more stringent short and medium-term targets that seek to reduce emissions in absolute terms and for all emission scopes, including scope 34.
“Our engagement will also focus on the issues within Shell’s climate transition plan that undermine the credibility of their strategy. We have discussed with the company RLAM’s 12 milestones3 on climate and we were encouraged by the company’s inclusion of the full business value chain in its climate considerations and commend their robust and transparent scorecard for remuneration.”
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