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Shell shareholders turn down investor climate resolution

Shell shareholders on Tuesday extremely turned down an environment resolution submitted by an activist group following a meeting punctuated by protests.

In March, Shell damaged a 2030 carbon decrease target, pointing out expectations for strong gas demand and unpredictability in the energy transition, while concentrating on more lucrative operations, mainly in oil and gas.

The resolution was submitted by activist investor Follow This and backed by a group of 27 investors that jointly have around $4 trillion under management. It urged Shell to align its medium-term carbon emissions decrease targets with the Paris Environment Arrangement, consisting of emissions from fuels burnt by customers.

The resolution got 18.6% support from shareholders, compared with just over 20% in 2015.

Shell's board had urged investors to oppose the resolution, whose backers included Amundi, Scottish Widows, Rathbones Group and Edmond de Rothschild Asset Management.

At the same time, a different resolution brought forward by Shell's board on its environment technique won 78.2% support.

I'm delighted that we have actually seen the Follow This resolution get an even lower share of the votes compared to previous years. That's a sign of growing trust and confidence in our ability to browse the energy transition, CEO Wael Sawan told reporters.

The annual investor meeting was interrupted numerous times by environment protesters shouting Shell eliminates. Environment protesters also held a demonstration outside the meeting.

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The meeting was controlled by shareholder questions about Shell's energy transition strategy.

Your board wishes to continue with business model of turning hydrocarbons into petro-dollars ... They don't want to get out of their comfort zone since they do not understand how to make revenues with tidy energy, Follow This founder Mark van Baal stated.

In March, Shell said it would target a 15-20% decrease in net carbon intensity of its energy items by 2030 compared with 2016 strength levels. It had previously gone for a 20%. cut. It also ditched a 2035 goal, while affirming a plan. to cut emissions to net absolutely no by 2050.

The company, however, presented a brand-new ambition to cut. total emissions from oil products such as gas and jet. fuel sold to consumers by 15-20% by 2030 compared to 2021.

End-user emissions, referred to as Scope 3, represent. about 95% of the business's greenhouse gas pollution.

Shell believes continued investment in oil and gas will be. required, Chairman Andrew Mackenzie told the meeting.

The British company likewise faces a 2021 landmark Dutch court. ruling, which it appealed last month, ordering it to reduce its. greenhouse gas emissions by 45% by 2030 from 2019 levels.

Researchers state the world needs to cut greenhouse gas emissions. by around 43% by 2030 from 2019 levels to stand any possibility of. meeting the 2015 Paris Agreement objective of keeping warming well. listed below 2 degrees Celsius (3.6 degrees Fahrenheit) above. pre-industrial levels.