Shell and BP split over climate activist vote at AGMs
Shell has agreed to let shareholders vote on a climate-related resolution proposed by activist investor group Follow This at its upcoming annual general meeting, while formally recommending that investors vote against it.
The decision highlights a clear contrast with BP, which chose not to include the same resolution on its AGM agenda at all. BP’s move has already drawn criticism from some shareholders and proxy advisory firms, several of which have urged votes against the company’s board decision, News.Az reports, citing Reuters.
The Follow This resolution calls on oil majors to provide clearer disclosure on how their business strategies would perform in scenarios where global demand for oil and gas declines. Supporters argue this transparency is essential for assessing long-term climate and financial risks.
BP has argued that the proposal is not valid and would not be effective even if it were approved by shareholders. The company maintains that existing reporting already allows investors to model financial resilience across different price and demand scenarios.
Shell, meanwhile, says its current disclosures already provide sufficient detail for investors to evaluate its performance under a wide range of market conditions. The company also warned that binding itself to specific scenarios could be poor governance, given how quickly energy markets and assumptions can change.
The differing approaches from the two energy giants underscore growing tensions between shareholder climate activism and traditional oil and gas strategy, as investors continue pushing for more transparency on long-term transition risks.
News.Az
By Aysel Mammadzada
