Shell suffers investor revolt over gas production impact on climate plans
The oil major saw 20.56% of votes supporting a resolution put forward by shareholders at its annual general meeting (AGM) held near Heathrow Airport on Tuesday.
The proposal called for the board to disclose whether and how its liquified natural gas (LNG) demand forecast, production and sales targets are consistent with its climate targets.
While not legally binding, support for shareholder resolutions can put pressure on business leaders to respond to the matters raised, and more than 20% of dissent against the board can be considered a rebellion.
Previous shareholder resolutions focused on climate received similar levels of support over the last five years, ranging from 18.6% to 30.5%.
Responding to the results, Shell said the board will meet its obligation to explain what actions it will take to consult with shareholders to understand the reasons why just over a fifth supported the resolution.
In his opening address, chair Sir Andrew Mackenzie defended Shell's recent shift of focus back towards fossil fuels.
'Shell believes the world needs more liquified natural gas to replace coal in Asia for energy security, and to complement and enable renewables,' he said.
'So we expect LNG will play a critical role in the transition.'
Sir Andrew also argued that Shell expects all demand to stay strong for the 'foreseeable future', meaning continued investment in fossil fuels will be needed.
'Let's be clear, no business can operate outside the rules of supply and demand.
'So for the energy transition to succeed, there must also be demand for low carbon options from customers who are willing and able to pay for it.'
During the nearly three-hour meeting, the board was repeatedly challenged about its impact on the planet and commitment to cutting emissions to zero overall by 2050 – known as net zero.
Asked whether Shell would meet the demands of the shareholder resolution, chief executive Wael Sawan said: 'There is not a company that discloses more or better information on LNG than Shell.'
Mr Sawan then made a plea to shareholders not to support 'these sorts of resolutions'.
'What they are undermining is the ability of the board that you have elected to be able to drive the strategy of the company to do their job,' he said. 'Challenging and providing input is very welcome but let's have those engagements and not do it through the resolutions.'
The resolution was co-filed by Brunel Pension Partnership, Greater Manchester Pension Fund, Merseyside Pension Fund and the Australasian Centre for Corporate Responsibility (ACCR) with the support of activist group ShareAction and more than 100 individual investors.
Responding to the voting results, Jackie Garton, senior corporate climate campaign manager at ShareAction, said: 'Today's vote sends a strong message that shareholders will not sit back as Shell doubles down on growing its liquified natural gas production despite its own stated climate commitments.
'It's worrying that instead of addressing their concerns, Shell repeatedly shifted the blame for their oil and gas production growth plans onto consumers during its annual general meeting.'
Mark van Baal, from activist group Follow This, which did not file its usual climate resolution this year, said: 'Today's AGM demonstrates that more and more shareholders do not accept that the board puts the future of the company at risk by stubbornly sticking to a century old business model that risks being disrupted within five years.'
In a statement, Mr Sawan said: 'Shell's shareholders have strongly backed our strategy to deliver more value with less emissions as outlined at Shell's Capital Markets Day 2025.
'Our focus on performance, discipline and simplification enables us to invest in providing the energy the world needs today, and in helping to build the low-carbon energy system of the future.'
As the meeting was taking place at a hotel near Heathrow, protesters believed they were unable to stage an action outside because of a High Court injunction prohibiting environmental demonstrations at the airport.
Activists from campaign groups Amnesty International UK, Fossil Free London, and the Justice 4 Nigeria coalition instead held a protest outside Shell's global headquarters in central London.
Sacha Deshmukh, chief executive of Amnesty International UK, called the effect of such injunctions in protecting firms such as Shell from protests as 'chilling'.
Areeba Hamid, co-executive director of Greenpeace UK, which supported the protest, accused the firm of 'hiding' behind the injunction to 'shut down legitimate questions about its operations'.
A spokesperson for Shell denied that the location had been chosen due to the injunction and that it chose the location 'purely based on availability'.
In a statement on its website, Heathrow Airport also said: 'For the avoidance of doubt, Heathrow Airport Limited does not consider that the terms of the injunction have the effect of prohibiting or restricting the lawful attendance of any shareholder at the Shell AGM.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
5 hours ago
- Reuters
Senior Taiwan official visits site of new Alaska LNG project
TAIPEI, June 7 (Reuters) - A senior Taiwanese official said on Saturday he had this week visited the site of a potentially enormous new liquified natural gas (LNG) project in Alaska that the Trump administration has been pushing hard to allies in Asia as a supply option. Energy developer Glenfarne had said on Tuesday that 50 firms had formally expressed interest in contracts worth more than $115 billion from its Alaska LNG project, a massive infrastructure deal championed by U.S. President Donald Trump. Writing on his Facebook page, Pan Men-an, secretary-general to Taiwan President Lai Ching-te, said he had attended an energy conference in Alaska at the invitation of U.S. Secretary of Energy Chris Wright and visited the state's North Slope. Phase One of the project is expected to deliver natural gas about 1,230 km (765 miles) from the North Slope to the Anchorage region. "Despite the freezing temperatures, we talked enthusiastically about building resilience and responsibility as democratic partners in the face of global climate change and the challenges of authoritarianism," Pan wrote. "In the face of trade challenges and international turbulence, we have no choice but to rise to the occasion," he said, without mentioning whether he had signed any deals while there. The presidential office said late on Friday that Pan had been accompanied by Fang Jeng-zen, chairman of Taiwan's state-owned energy company CPC. CPC in March signed a non-binding agreement to buy LNG and invest in the project, a move Taiwan's president has said would ensure the island's energy security. If built, the Alaska LNG project will export up to 20 million metric tons of the superchilled gas a year. It would open direct access for U.S.-made LNG to Asian markets without having to go through the Panama Canal or around the Horn of Africa, reducing transit time and costs. Taiwan has pledged to massively ramp up its purchases from the United States, including energy, to reduce a yawning trade surplus that has angered Washington.
The Courier
6 hours ago
- The Courier
First look: Newport's newest bar and restaurant Shoreline opens amid local excitement
Many restaurant owners would kill to have the assets that Shoreline, a new bar and restaurant in Newport, boasts. The venue sits right on the banks of the Tay and has staggering, uninterrupted views across the firth from both its restaurant and deck. What's more, the space is beloved by locals; it used to house the immensely popular bar and restaurant Boat Brae. Despite these blessings, operating a restaurant in the building has not always been plain sailing. The problems started in July 2022 when a fire momentarily closed Boat Brae. The Beaton family, who ran the restaurant at the time, reopened the popular spot but were eventually forced to close it in February 2024 as a result of rising costs. Businessman Rod McCreadie took over the business in the summer of 2024, but his tenure was short lived. The restaurant closed again amid the news that one staff member had not been paid their wages. Now, Esther and Andrew McMahon are hoping to end the building's run of ill fortune with their latest venture – Shoreline. I visited Shoreline on the afternoon of Friday June 6, just a few hours before its grand opening. Upon first entering Shoreline, it seems very little has been changed. The venue is still split into four sections: the bar, the library, the restaurant and the deck. Inside, pretty much all the fittings and fixtures remain. In fact, the only noticeably difference is in the building's signage. 'The first owners did such a great job decorating and we were just conscious that people in Newport wanted their old pub back,' Andrew tells me. 'We've just come in, given it a deep clean and brought in some new faces and new ideas. As Andrew hints at, the lack of material change belies some operational upheavals. Under the previous owners, opening hours were Thursday to Sunday 4pm to late. In contrast, Shoreline is open from 10am, seven days a week. Further changes become evident when I head to the decking. Esther and Andrew have transformed an old shed into an outdoor kitchen and bar. Here, a chef will man a charcoal barbecue cooking things like burgers and chicken kebabs. The food on this shack menu, Esther tells me, is available everyday of the week, and those eating on the deck and in the bar and library, are able to order it. Shoreline also has an upstairs section dubbed 'The Restaurant'. It's not yet open as many staff members are still serving their notice elsewhere. That said, it should open in the next few weeks. Until then, guests are encouraged to order from the shack menu. Under the Beatons, the restaurant was known for serving adventurous plates, including braised ox cheek. Latterly, the menu pivoted to more standard pub grub. So, what are the McMahons plans? 'The menu is still in development,' Esther says, 'but we think it's going to be pub classics done really well using seasonal, local produce. 'We're also going to focus on seafood.' The duo go on to explain that, aside from a core range of seafood dishes, a number of seafood specials will be served at Shoreline. 'It just makes sense,' Esther says, gesturing to the nearby firth. 'We've expanded both the beer and wine selection,' Andrew says. Old regulars will be glad that Tennent's remains on tap along side Madri, Guinness and Rekorderlig. Other options include Caffery's Irish Ale and Alpacalypse Session IPA. 'We're going to be serving cocktails, but not a huge list. Probably about 12,' Andrew says. 'We've got a good wine menu,' Esther adds, 'including some magnums of rosé which I can imagine will go down well on a sunny day.' While both are clearly passionate about what they currently offer, Esther and Andrew are ready to adapt. As Andrew says: 'That's a benefit of being an independent. You can be fluid and adjust. We'll listen to people and will give them what they want.' 'We're trying to make it the kind of place where you can come for a drink with your family a couple of times a week, but also for that special occasion as well,' Esther adds. My first impression? They're well on the way to creating such a special place, making the most of the incredible assets that surround them.
Reuters
20 hours ago
- Reuters
Eni, YPF sign agreement for participation in Argentina LNG project
MILAN, June 6 (Reuters) - Italian energy group Eni ( opens new tab and Argentina's YPF on Friday signed an agreement on the Argentina LNG (ARGLNG) project during a meeting in Rome between Italian Prime Minister Giorgia Meloni and Argentine President Javier Milei. Eni will act as a strategic partner of YPF on the Argentina LNG project and make use of the know-how it has developed in its floating LNG projects in Congo and Mozambique, the Italian group said in a statement. The Argentina LNG project is designed to develop the resources of the onshore Vaca Muerta field and serve international markets. The project will export up to 30 million tons per year of liquefied natural gas (LNG) by 2030, using a phased approach.
