By Jaime Llinares Taboada

 

Royal Dutch Shell PLC shareholders on Tuesday backed the company's energy transition strategy at the annual general meeting.

An advisory vote on Shell's energy transition strategy received 88.74% of support at the meeting, the Anglo-Dutch energy major said.

Meanwhile, a shareholder proposal urging Shell to set and publish targets consistent with the goals of the Paris Climate Agreement, and to report on the strategy, policies and progress made at least on an annual basis, was rejected with only 30.47% of votes in favour. The company had said this resolution was redundant and had advised shareholders to vote against it.

"This shareholder vote on our Energy Transition Strategy is a first for an energy company and we are pleased shareholders demonstrated their strong endorsement with more than 88% of votes cast in favour of our strategy," Chief Executive Ben van Beurden said.

Shell has a target to become a net-zero company by 2050. The company has said that its oil production will gradually decline after peaking in 2019, but it intends to continue expanding its liquefied natural gas capacity.

The International Energy Agency said Tuesday that investments in fossil fuels should stop from today if the world is to achieve net-zero emissions by 2050.

Shell's transition strategy also includes increasing sales of chemicals, lubricants, low-carbon fuels, electricity and hydrogen, and investing in nature-based solutions to offset emissions.

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

May 18, 2021 09:16 ET (13:16 GMT)

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