Norway’s Stance
The $1.6 trillion sovereign wealth fund of Norway, the second-largest shareholder of Shell (NYSE:SHEL), has boldly declared its position. It announced on Friday that it will not back a climate resolution put forth by a coalition of 27 shareholders aimed at pushing Shell towards more aggressive climate targets.
Firm Confidence in Energy Transition Strategy
A spokesperson for the fund highlighted that Shell’s energy transition strategy is robust and “sufficiently retains the core components of a Paris-aligned transition plan.” However, the fund did recommend additional strategy disclosures to alleviate uncertainties surrounding Shell’s trajectory by the mid-2030s.
Push for Alignment with Paris Agreement
Championed by activist shareholder Follow This, the resolution by the coalition with assets totaling approximately $4 trillion calls for Shell to harmonize its medium-term carbon reduction targets with the Paris Agreement. This would encompass Scope 3 emissions produced by consumers using Shell’s fuels.
Shell’s Resistance and Rationale
In its notice preceding the annual general meeting scheduled for May 21, Shell advised shareholders to vote against the resolution. The company firmly stated that the resolution runs counter to principles of good governance and shareholder interests, raising concerns about repercussions for its clientele.