Shell (SHEL) Seeks Investors to Oppose Climate Resolution
Shell plc (SHEL), at its annual general meeting in London last week, urged its shareholders to reject an environment activist resolution calling for stringent emissions reductions by 2030.
Six significant institutional investors, managing $1.3 trillion in assets, have co-filed resolutions requesting Shell and other oil majors to make absolute emissions cuts by 2030. The activist group wants the companies to commit to complete emissions cuts, including emissions from burning of the fuels they sell, also called Scope 3 emissions.
According to scientists, the world must reduce greenhouse gas emissions by 43% within 2030 from the 2019 levels, in order to meet the Paris Agreement target of limiting global warming to well below 2 degrees Celsius over pre-industrial levels.
In a similar vein to BP plc's BP objection last week, Shell stated that this resolution is not in the best interest of shareholders and is detrimental to good corporate governance.
As the world adapts to the difficulties of energy security and the energy transition, Shell has given two opposing scenarios of what the world could encounter. According to Shell's primary findings from the Energy Security Scenarios, there is no practical way to an immediate and sharp decline in emissions, and it would take extensive carbon removal and storage to bring the global temperature increase back down to 1.5°C.
Unless Shell and BP strengthen their commitments to managing carbon emissions, two of the UK’S largest pension funds have vowed to vote against the renewal of top directors at both these firms.
Zacks Rank & Key Picks
Currently, Shell carries a Zack Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Two better-ranked stocks for investors interested in the energy sector are CVR Energy CVI and Par Pacific Holdings Inc. PARR, both sporting a Zacks Rank #1.
CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023.
Par Pacific, a growth-oriented company, combines knowledge of corporate financing with experience in the oil and gas sector. With 94,000 bpd of active refining capacity and a logistical system that includes an SPM, storage, barges, pipelines and trucking operations, PARR owns and manages one of Hawaii's biggest energy networks. Over the past 30 days, PARR has witnessed an upward revision in earnings estimates for 2023 and 2024.
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BP p.l.c. (BP) : Free Stock Analysis Report
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Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report
