Advisory firm PIRC opposes Shell climate plan for lacking ambition

　　div classBodysc17zpet90 cdBBJodivpBy Shadia Nasrallap

　　pLONDON Reuters – Advisory group PIRC recommended shareholders vote against Shell‘s nonbinding climate resolution at the energy company’s annual general meeting AGM on Tuesday, according to a document seen by Reuters.pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pThe Pensions & Investment Research Consultants PIRC, a major proxy advisory, said Shells climate plans lacked clarity as to who was accountable for reaching emissions reduction targets, which were not ambitious enough to begin with.p

　　pShell formulates its climate targets in terms of carbon intensity, which allows for higher overall emissions on the back of higher output, even if the headline intensity emissions count falls. p

　　pPIRC said “we would prefer to see all targets set out in terms of absolute emissions, not intensity”. Claims on carbon capture and storage as well as forestryderived carbon offsets were not clear enough, it added.p

　　pThe proxy advisor voted against Shells climate plans last year on the same counts.p

　　pPIRC recommended shareholders vote in favour of a resolution filed by the Follow This activist group asking Shell to publish climate goals consistent with the Paris climate accord of 2015, aiming for absolute emissions reductions of around 40 by 2030.p

　　pAt Shell‘s 2021 AGM, shareholders backed Shell’s climate plans, but Follow This garnered support from around 30 of Shell shareholders, more than doubling its tally from the previous year.p

　　pThe Local Authority Pension Fund Forum, a British shareholder group with assets under management of around 350 billion pounds 433 billion which says it has a collective 4 holding in Shell, will also vote against Shell and for Follow This.p

　　p“‘Progess’ against a flawed strategy isnt progress,” said a LAPFF spokesperson. p

　　pTuesdays vote comes against the background of a Dutch court ordering Shell last year to slash its absolute emissions by 45 by 2030. Shell has appealed the ruling, saying it can reach net zero only if society as a whole moves to net zero.p

　　pShell, saying its strategy is in line with the Paris accord, recommended shareholders rebuff Follow This, calling it “unrealistic” in a note to shareholders.p

　　p1 0.8079 poundsp

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　　pp Additional reporting by Ron Bousso Editing by Jan Harveyp

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