26 October 2017: Campaign update

It’s been two years since we co-filed shareholder resolutions on climate disclosure at BP and Shell. While the oil majors have complied with the minimum requirements of those resolutions, their current business models continue to ignore the reality of the low-carbon transition. We have published two reports analysing each company’s performance in order to support institutional investors to press the companies to move beyond climate disclosure and take meaningful action now.

BP Plc Royal Dutch Shell Plc

Engaging fossil fuel companies on the low-carbon transition

In 2017, we urged investors to vote down BP and Shell’s pay policies which are incompatible with the Paris Agreement and the interests of long-term shareholders.

Unfortunately, an overwhelming majority of investors supported the policies. This highlights the need to ramp up pressure and urgency on big investors to hold the oil majors to account on the landmark climate resolutions that passed at both companies’ AGMs in 2015.

ShareAction is also doing its part on following up on progress made on the resolutions.

Why this is important and what we’re doing about it

The planet is warming at a dangerous speed. Without taking decisive action, we will be locked into a future of widespread famine and drought, destruction of coastal communities, and the compounding effects this physical destruction will have on poverty, migration and conflict. In an effort to curtail this devastation, global governments signed a historic climate agreement at COP21 in Paris in 2015 that agreed to limit global temperature rises to ‘well below 2°C, with an ambition for 1.5’. This raised the bar for climate action that had previously been set to 2°C: recognising that for small island states and other vulnerable societies, an extra 0.5°C could be the difference between survival and disaster.

To achieve this, a momentous shift in our economic system will be required. It is critical we focus on accelerating the clean energy transition across industries vital for unlocking a low carbon economy: from fossil fuel companies to utilities, financial services and transport sectors.

These companies, like BP and Shell, are ones that our pension savings are heavily invested in. Investors must act to ensure our money is aligned with the low-carbon future that is in all of our interests. As the stewards of these companies, they have an important role to play in signalling the transition we need, as well as monitoring and acting to ensure that commitments are followed through with action.

ShareAction uses a whole toolkit of tactics to ensure this is taking place: from attending AGMs, coordinating letters and connecting pension funds with their members, to undertaking detailed analysis and research. We work collaboratively with a range of stakeholders and groups to achieve our aims.

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Campaign resources

Still Digging: Recommended Investor Response to 2018 Shareholder Resolutions on Rio Tinto’s Climate Lobbying

This report analyses Rio Tinto’s response to resolutions regarding its membership of industry bodies and climate and energy policy. It recommends investors vote for resolutions 19 and 20 at its 2018 AGM.

Download

Comparative Analysis of Shell’s November Ambition and the 2018 Follow This Resolution

This briefing compares Shell’s November ambition and the 2018 shareholder resolution. Shell’s ambition is less ambitious than the resolution. We recommend shareholders supporting the Paris Agreement back the resolution.

Download

Strategy, Free Cash Flow, and Climate Uncertainty: Where Now for the Integrated Oil Sector?

New research suggests shareholders should be requesting cash returns from outperforming oil and gas companies, instead of seeing it invested into economically unsound growth during a period of disruptive change.

Download

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Jeanne Martin Senior Campaigns Officer

Colette St-OngeFossil Fuels