It almost a year ago, that we reported that the PPF had filed a resolution against Shell’s approach to climate change (see our article here).

In a further development, a shareholder resolution has been filed by a number of pension scheme investors, including Brunel Pension Partnership, Greater Manchester Pension Fund and Merseyside Pension Fund as well as other entities including the organisation ShareAction. The resolution calls on Shell to explain its investments in liquefied natural gas (LNG). The resolution asks how the investment in LNG aligns with Shell’s own climate-related goals as well as various global agreements to move towards renewable energy. The shareholders argue that in an economy that is transitioning to renewable energy sources, investments in fossil fuels are not likely to see a large return. The resolution requires Shell to explain the investments before its 2026 Annual General Meeting. 

Shell has been given some time to provide a response, so we await further developments. But, it is clear that this is an active area and that corporations should appreciate the increased interest from pension schemes and other stakeholders as to the investments being made. 

Burges Salmon is well placed to advise on all aspects of ESG in relation to pension schemes. If you would like to explore this topic further, please contact Kate Granville Smith.