RLAM Criticizes Shell Climate Plan, Says Will Abstain On Vote

RLAM Criticizes Shell Climate Plan, Says Will Abstain On Vote - Carbon Herald

RLAM (Royal London Asset Management), which holds 0.7% in Shell (or about $1.5 billion)  said it cannot support Shell’s current climate plan, partly because of overdependence on nature-based offsets and divestments. The oil giant continues to consider strategies for oil and gas frontier exploration 2022-2025.  

RLAM explained its abstention vote is in line with its own net-zero engagement strategy, which follows the Net Zero Asset Managers Initiative (NZAMI).

The investment management company also said it would rather see Shell immediately stop all exploration in agreement with the most recent reports of the International Energy Agency and Intergovernmental Panel on Climate Change.

In addition, RLAM stated they would like to see Shell set stricter short and medium-term targets that aim to decrease all emissions, including indirect emissions in the company’s value chain. 

Relevant: Shell Board Sued For Failing To Prepare For Energy Transition

“RLAM has decided to abstain on Shell’s climate transition plan,” said Carlota Garcia-Manas, head of engagement at RLAM. “While we acknowledge the considerable progress made in Shell’s climate efforts and the 2021 delivery, in our view, there is not enough certainty in the plan that it aligns with the goals of the Paris Agreement.”

She also confirmed Shell has discussed with Royal London Asset Management the investment management company’s own climate commitments and said that RLAM found Shell’s resolve to include its full value chain into its climate considerations encouraging. 

Read more: Activist Investor Loeb Wants To Break Shell Up

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