More than £20bn of UK pension cash is invested in Shell as it faces revolt at its AGM today over net zero targets
- Shell faces investor revolt at its AGM today over climate concerns
- Leading pension funds are among those voting against Shell’s directors
More than £20billion of UK pension money is tied up in Shell, new research claims.
The average UK pension invests £905 in Shell, analysis by Make My Money Matter shows – a campaign founded by film director Richard Curtis.
The oil major is facing an investor revolt in its annual general meeting (AGM) today from some investors calling on Shell to move faster on its net zero ambitions.
Just stop oil: Pension funds are joining climate groups in piling the pressure on Shell ahead of its AGM
The company has come under fire for posting bumper profits as they reap the benefits of higher energy prices.
Pressure on oil companies’ efforts to slash emissions eased as focus shifted to producing secure oil and gas pipelines.
Share prices of energy firms like Shell and BP have been boosted as investors flock to what they consider to be a haven of stable returns.
In its most recent results, Shell reported record profits of £7.7billion in the first quarter.
Several pension schemes have announced plans to vote against Shell’s directors for failing to ‘sufficiently act on the climate crisis’.
Nest and London CIV, which represent almost £78billion of pension money, will join the Church of England Pensions Board and Brunel Pensions Partnership to vote against directors at Shell’s AGM.
Katharina Lindmeier, Nest’s senior responsible investment manager, said: ‘Following their record profits, we’d hoped Shell would step up their activities towards meeting their net zero ambitions.
‘Instead, they’re kicking the can down the road and increasing the risks on long-term shareholders.’
Both Nest and London CIV will vote against the re-election of Shell’s chair Sir Andrew MacKenzie, supported by investment adviser PIRC, in a bid to hold directors accountable for climate inaction.
While many investors will welcome the boost to their savings that has come from the $4billion share buyback, polling shows the funds are well supported by investors.
Some 44 per cent of the 2,000 people surveyed by Make My Money Matter think their fund should vote against Shell’s directors at the AGM.
An even higher number – 58 per cent – have no idea their money is invested in the oil major.
Just over a fifth say they would switch pension providers if they found out their savings were invested in Shell.
‘The pensions industry is adamant that only through engagement can they really make a change in how fossil fuel companies act.
Well, now is the moment for it to put its money where its mouth is,’ said Tony Burdon, chief executive of Make My Money Matter.
‘That’s why Make My Money Matter is calling on the industry to finally flex its muscles in boardrooms this AGM season and vote to make Shell and its polluting peers do better, to protect members savings and our planet.
‘Because you can’t claim to be a leader on climate but continue to support the directors of companies who are driving fossil fuel expansion.’
