Two of Britain’s biggest firms are facing shareholder revolts over their ‘inadequate’ climate change goals.
Shell and Glencore are braced for gruelling annual meetings next week as they struggle to balance pressure to drive profits alongside calls to tackle the climate crisis more vigorously.
Shell has come under fire for an earnings ‘bonanza’ as a result of spiralling oil and gas prices since Russia’s invasion of Ukraine.
Glencore, meanwhile, has been criticised for its expansive coal business as well as its energy trading arm.
At the Shell AGM on Tuesday, the Church of England Pensions Board has said it will vote against the re-election of Shell chairman Andrew Mackenzie and chief executive Wael Sawan in protest over the company’s climate policies.
Revolt: Shell and Glencore are braced for gruelling annual meetings as they struggle to balance pressure to drive profits alongside calls to tackle the climate crisis more vigorously
And a small but influential group of investors is set to support a resolution filed by activist group Follow This calling for tougher emission reduction targets by 2030. A Dutch court last May told Shell to adjust its climate targets, a ruling the energy giant has appealed.
If Shell loses its appeal, it may have to slash profitable parts of its business.
Fund manager Federated Hermes, which advises clients with around £800billion in assets, has recommended its members support the Follow This resolution at Shell’s annual general meeting.
Glencore, the Switzerland-based miner and commodity trader, has also come under fire for its energy strategy.
Proxy adviser Pirc has recommended investors oppose Glencore’s climate progress report and back a shareholder resolution calling for greater disclosure of climate reporting – including admitting how the company will meet coal production goals.
Ahead of the meeting next Friday, the group has called on investors to oppose the company’s chairman and annual report for failing to address climate risks by setting adequate targets.
Paul Hunter, head of policy at Pirc, said: ‘Time is running out to avoid the worst impacts of climate change and reduce the climate-related risks facing investors.
‘This means that those companies in high-emitting sectors, including mining, urgently need to be setting adequate short-term targets as part of climate credible action plans.’
BP was able to fend off its own shareholder revolt last month, with less than one in five shareholders voting against the business’s weakened plans to scale back oil and gas production.
The world needs to cut greenhouse gas emissions by 43 per cent from 2019 levels by 2030 to have any hope of limiting global warming to 1.5 Celsius, the level scientists say can prevent the most severe consequences and enshrined in the Paris Climate Agreement.
