The £160 bn ‘Aiming for A’ investor coalition* has co-filed supportive, but stretching, shareholder resolutions at the BP and Royal Dutch Shell 2015 Annual General Meetings. These resolutions focus attention on the risks and opportunities that climate change poses for these companies and asks for further reporting on several areas, including:

• Ongoing operational emissions management
• Portfolio resilience to the International Energy Authority’s scenarios
• Low carbon energy research and development and investment strategies

Both BP and Shell’s Boards have advised shareholders to support the resolution.

“BP and Shell’s responses indicate that supportive but stretching shareholder resolutions can play a positive stewardship role. They focus attention on an increasingly complex capital allocation challenge for energy companies, investors and policy makers.”

Helen Wildsmith, Head of Ethical & Responsible Investment at CCLA

“The positive way in which BP and Shell have responded to our shareholder resolutions is completely unprecedented. This represents a step change in engagement between institutional shareholders and the oil and gas industry on the strategic challenge that climate change poses to the industry. The next step is for investors to back the boards of both companies and to vote for the disclosures that we have requested and that the companies have said they will provide. We look forward to seeing the new in-depth reporting from both companies later this year, and to continued engagement.”

Edward Mason, Head of Responsible Investment for the Church Commissioners

 

*The ‘Aiming for A’ coalition, built by CCLA, includes the Local Authority Pension Fund Forum (LAPFF), the largest members of the Church Investors Group (CIG) and Rathbone Greenbank Investments.