Supported a shareholder resolution at Shell’s 2025 AGM

Royal London Asset Management supported a shareholder resolution at Shell’s 2025 AGM, seeking improved disclosure on how the company’s Liquified Natural Gas (LNG) growth strategy aligns with demand forecasts and its target to reach net zero emissions by 2050. 

Shell is one of the world’s largest companies operating across the oil and gas industry and has committed to being net zero by 2050 (1). This ambitious goal includes interim targets for 2030, and we have already seen some promising progress. Our extensive engagement with Shell over the years has revealed significant advancements such as the introduction of an absolute Scope 3 emissions reduction target for oil products.

However, reduced ambition on other targets means we currently assess the company as misaligned with the goals of the Paris Agreement. The company’s commitment comes in the context of a challenging macro environment, with shifting pressures and headwinds for the energy transition. Further details on our engagement with Shell in 2024 and our assessment is available in the 2024 Net Zero Stewardship Programme Climate Transition Assessments. 

Our extensive engagement with Shell over the years has revealed significant advancements such as the introduction of an absolute Scope 3 emissions reduction target for oil products. However, reduced ambition on other targets means we currently assess the company as misaligned with the goals of the Paris Agreement. 

As part of its transition strategy, Shell is planning significant growth of its LNG business by 20-30% by 2030 (2). The filers of this resolution believe Shell’s strategy is based on higher than anticipated demand and is misaligned with the company’s net zero commitment. We met with the proponents of the resolution to understand their concerns and acknowledge that Shell, in response to the resolution, presented helpful information in its 2025 Notice of AGM. The company has also indicated that it will publish additional details before the 2026 AGM and has already disclosed elements of the requested information. 

We have discussed the topic of LNG extensively with Shell and believe that additional disclosure would be beneficial due to the complexity of the topic. Given that the additional disclosure is due to be published after the AGM vote, we continue to see value in supporting the resolution and believe the extra information will enhance our financial and climate analysis of the company. We look forward to reviewing all additional disclosures and continuing our engagement on this matter and other priorities with Shell. 

At Royal London Asset Management, we exercise our voting rights globally, holding companies accountable for their decisions and actions. The voting process is a powerful tool for potentially influencing outcomes and making relevant decision-makers aware of shareholders’ sentiments on important topics. We support climate-related proposals submitted by shareholders if they are proportionate and judged to be in the best interest of all stakeholders. 

Our voting always aims to be pragmatic, reflective of local best practice and evolving market insights, and in the long-term interests of our clients. Alongside voting, our engagement, research, and advocacy also help to add value and meaning to our investment decisions. Voting and engagements may not always apply to any specific Royal London Asset Management fund or strategy, as each will have different investment objectives. Please check your prospectus for details on specific product objectives.

Voting result

(1) Source: Shell, Our climate target - FAQs | Shell Global 
(2) Source: Shell 25 March 2025. Shell accelerates strategy to deliver more value with less emission | Shell Global

Learn more

2024 Shell engagement case study  
Voting Guidelines  
Stewardship and Responsible Investment report   

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