Royal Dutch Shell PLC (LON:RDSB) received overwhelming support for its energy transition strategy at its AGM today, while a proposal put forward by an activist investor wasn’t passed but gained considerable support.
Nearly 89% of shareholders voted for the oiler’s own plan, which involves growing its renewables and low-carbon business and offsetting emissions through carbon capture and reforestation.
The end goal would be to cut CO2 emissions to net-zero by 2050.
Another resolution was proposed by activist group Follow This, which called the FTSE 100 firm to set ‘inspirational targets’ to reduce its greenhouse gas emissions.
However, it was rejected by 69.53% of shareholders.
“We will seek to fully understand the reason why shareholders voted as they did, particularly those who voted both ‘For’ Shell’s strategy and ‘For’ the Shareholder Resolution, and will formally report back to investors within six months,” chief executive Ben van Beurden commented in relation to the special resolution.
Last week, pressure group PIRC (The Pensions & Investment Research Consultants) recommended shareholders to vote against the company’s strategy because it did not “seem to have a clear plan for the competitive aspects of the energy transition”.
Shares were flat at 1,427.2p on Tuesday before close.