Aegon is pushing its fund managers to vote against Shell’s energy transition strategy and Glencore’s climate action plan, as well as directors’ re-election, to guarantee that responsible investing standards are followed.
Shell and Glencore’s Annual General Meetings (AGMs) on May 21 and 29 will allow shareholders, stakeholders, and members to vote on major company issues, including climate action initiatives.
Aegon head of responsible investing Hilkka Komulainen says: “We have material questions about the board’s ability to ensure its business model is sustainable over the longer term.
“We’d like to see Shell provide more accountability and comprehensive disclosures in line with its stated support for the Paris Agreement goals.
“There’s a lack of a credible plan for reducing absolute scope 3 emissions across the organisation. This can be seen by Shell’s weakened climate ambition, a new remuneration policy that rewards liquefied natural gas sales instead of low carbon product sales or building renewables, and the use of higher oil and gas price assumptions and lower investment hurdle rates than peers.”
Komulainen adds: “We’re disappointed by Glencore’s reduced transparency on coal capex, despite investors’ calls for improved disclosure.
“There are concerns that Glencore’s lobbying activities – including the use of investor-state dispute settlement against states – have hindered climate policy developments.
“We’d like the company to consider going further – including disclosure on forward coal production guidance; clarity on its climate strategy for the Elk Valley Resources’ assets; and regard to industry best practice, such as the Greenhouse Gas protocol and the International Energy Agency’s Net Zero Emissions by 2050 pathway.”
