In a significant shareholder meeting, Royal Dutch Shell’s leadership faced a contentious vote where the majority of shareholders endorsed the company’s current climate strategy, despite vocal opposition from climate activists. The vote followed adjustments to Shell’s carbon reduction targets for 2030, which CEO Wael Sawan revised downward earlier this year, citing robust demand for natural gas and the ongoing uncertainties in the energy transition landscape. Sawan emphasized the necessity of focusing on Shell’s most profitable sectors, particularly its oil and gas operations.
In the preliminary tally, only 18.6% of shareholders supported a resolution from climate-focused investors pushing for more aggressive carbon cuts. Conversely, a proposal ratified by Shell’s board advocating for the company’s existing environmental framework received overwhelming approval, with 78.2% backing. During the annual general meeting, Shell’s Chairman Andrew Mackenzie reiterated the company’s stance on the indispensable role of oil and natural gas in the global energy matrix. He highlighted the particular importance of liquefied natural gas (LNG) as a pivotal component of the energy transition, asserting that “oil will play a vital role for a long way to come.”
The shareholder meeting was not without disruption, as it witnessed several interruptions by climate activists inside the venue, who chanted “Shell kills” in protest. Additionally, a significant demonstration unfolded outside the meeting, underscoring the growing public and activist scrutiny over Shell’s environmental policies.
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