Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe Log In

Shell to link short-term carbon emission reductions with executive pay

When the world’s biggest investors say jump…

Royal Dutch Shell committed to reduce its Net Carbon Footprint – the total emissions associated with its energy products – by 20% by 2035 and around half by 2050. By 2020, the British-Dutch oil and gas company will link executive pay to three- to five-year carbon reduction targets.

The announcement follows pressure from Climate Action 100+, a group of more than 300 institutional investors with $32 trillion in assets that is pressuring key greenhouse gas emitters to support the goals of the Paris climate agreement.

Pension funds tell companies: ‘No excuses’ for inaction on climate change

Shell acknowledged that its “future success is contingent on its ability to effectively navigate the risks and the opportunities presented by climate change.”

  • What it signals: Oil and gas majors will play ball with big pension funds and others that increasingly see climate change as a systemic risk to their portfolios. As climate leaders and laggards increasingly diverge, Shell is keen to be seen at the forefront of the energy transition.

  • European leaders. Europe’s oil companies, including Shell, are better prepared than North American producers in navigating risks, opportunities and climate governance, according to a ranking by Climate Disclosure Project.

European oil and gas majors hedge climate risks with low-carbon investments

  • New benchmark. The commitment by Shell is “a critically important benchmark against which the other oil and gas majors will be assessed,” said Ceres’ Mindy Lubber. Climate Action 100+, she says, “will now use this commitment to raise the bar for the oil and gas industry as a whole.”

You might also like...