Shell to Let Shareholders Vote on Shift to Cleaner Energy
By Sarah McFarlane: April 15, 2021 9:05 am ET
LONDON— Royal Dutch Shell PLC detailed a first-of-a-kind shareholder vote over its pivot away from oil, asking investors to endorse its energy transition strategy in a nonbinding vote next month.
While environmental groups have long put forward climate-related resolutions at annual shareholder meetings, Shell’s move is the first by an oil major to set up a regular review of its progress in moving away from oil.
The decision to offer shareholders a vote comes as energy companies face increasing investor pressure to map out their future in a lower-carbon economy, where oil and gas demand is forecast to fall, with the rollout of technologies such as electric cars and wind and solar power.
Earlier this year, Exxon Mobil Corp. outlined plans for a low-carbon business unit after some shareholders argued it should focus more on investments in clean energy, while BP PLC has pledged to cut oil output by around 40% over the coming decade and invest more in renewable energy.
Shell laid out plans in February to reduce its dependence on oil, saying it would cut output by 1%-2% a year, while boosting spending on low-carbon energy.
