Climate-focused Dutch funds to take lead on Shell investor engagement

　　div classBodysc17zpet90 cdBBJodivpBy Shadia Nasralla and Ron Boussop

　　pLONDON Reuters – Two climatefocused Dutch pension fund managers have been named to lead climate negotiations with Shell on behalf of a major group of investors that helped shape the energy companys drive to cut greenhouse gas emissions.pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pMN and PGGM will officially take the role on behalf of the Climate Action 100 CA100 investor group comprising 68 trillion in assets following Shells annual general meeting on May 24, MN said on Thursday.p

　　pShareholders will be asked to vote at the AGM on a nonbinding resolution on Shell‘s climate strategy as well as an activist climate resolution which Shell’s board opposes.p

　　pPGGM said on its website that it was going to support the Follow This activist resolutions at oil and gas companies shareholder meetings this spring.p

　　pOne bone of contention is that Shells targets are formulated in terms of emissions intensity, rather than in terms of absolute emissions reductions. An intensitybased target allows for higher overall emissions on the back of higher output, even if the headline intensity emissions count falls. p

　　p“MN and PGGM have taken the lead on engaging with Shell for CA100,” an MN spokesman said in an email, adding they would start the work after Shells AGM.p

　　pFollow This asks Shell to publish climate goals consistent with the Paris climate accord of 2015, aiming for absolute emissions reductions of around 40 by 2030. p

　　pShell, saying its strategy is in line with the Paris accord, called the Follow This resolution “unrealistic” in a note to shareholders.p

　　pMN and PGGM did not immediately reply to a question as to whether they would support Shells climate resolution alongside Follow This.p

　　pPrevious CA100 leads, the Church of England Pensions Board and Robeco, supported Shells climate strategy.p

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　　pp Reporting by Shadia Nasralla Editing by Kirsten Donovanp

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