Legal & General Investment Management (LGIM), the UK’s largest fund manager, has emerged as one of the shareholders objecting to Royal Dutch Shell PLC’s (LON:RDSB) climate plans, saying they do not go far enough.
READ: Royal Dutch Shell shareholders back energy transition strategy, block activist investor resolution
“We remain concerned that the strength of interim targets (up to 2035) and disclosed plans for oil and gas production fall short of the level of ambition required for the company to credibly claim alignment with a 1.5C pathway,” the investor told The Guardian.
However, nearly 89% of shareholders voted for Shell’s proposal, which involves growing its renewables and low-carbon business and offsetting emissions through carbon capture and reforestation.
Investors also voted on a resolution put forward by activist group Follow This, which called the FTSE 100 firm to set ‘inspirational targets’ to reduce its greenhouse gas emissions.
It was rejected by 69.53% of shareholders, with LGIM voting in favour.
“This is really a very strong signal to the board of Shell that their current targets are not sufficient to reach the [aims of the] Paris climate agreement. That is what investors one by one are realising,” said Mark van Baal, the founder of Follow This.