Investor proxy advisory Glass Lewis recommended Shell shareholders vote against a resolution filed by a group of 27 investors urging the energy company to set tighter climate targets.
The resolution, led by activist shareholder Follow This and backed by shareholders holding around 5% in Shell, will be brought to a vote at Shell’s annual general meeting on May 23.
The resolution urges Shell to align its medium-term carbon emissions reduction targets with the Paris Climate Agreement, including emissions from fuels burnt by consumers, known as Scope 3 emissions.
Glass Lewis said that given Shell’s “greenhouse gas emission reduction goals and disclosure on the steps it is taking to mitigate its carbon emissions, as well as insufficient evidence that would lead us to believe it is significantly lagging its peers, we do not believe that adoption of this proposal would benefit the Company or its shareholders at this time.”
Shell’s board urged investors to vote against the resolution.
A similar resolution last year won 19.3% investor support.
In March, Shell weakened a 2030 carbon reduction target and scrapped a 2035 objective, citing expectations for strong gas demand and uncertainty in the energy transition even as it affirmed a plan to cut emissions to net zero by 2050.