Shell's Emissions Commitment May Fall Short for Activist Investors -- ESG Insight

Commentary by Gonçalo Lousada, research analyst, ESG & impact investing

Shell announced on Thursday an environmental goal to halve absolute emissions scopes 1 and 2 by 2030. It also aimed to terminate upstream routine gas flaring by 2025 instead of the previously established goal for 2030. Shell currently faces pressure from the activist investor Third Point, which holds a $500 million stake in the Anglo-Dutch company and has been requesting it to consider the creation of two separate entities, one for refining operations and another for renewable energy. Shell is one of its industry's worldwide best performers regarding greenhouse-emissions management. According to WSJ ESG scores, Shell ranks second out of the 133 oil-and-gas exploration-and-production companies in the management of greenhouse-gas emissions, in a global list topped by the Chilean company GeoPark, while BP ranked third.

Write to Gonçalo Lousada at goncalo.lousada@dowjones.com

ESG Insights are written by The Wall Street Journal's ESG research analysts, whose commentary is independent of the news coverage by reporters at the Journal.

(END) Dow Jones Newswires

October 28, 2021 14:01 ET (18:01 GMT)

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