Royal Dutch Shell, the energy giant is about to set targets for the carbon emission to associate these with its executive pay. The decision was taken after the Anglo-Dutch company witnessed pressure from the Church of England Pensions Board and a team of investors. The latter is led by Robeco, the assistant manager, who stated that the drastic change in the climate is the greatest threat faced by the world and is also a huge systematic risk. Shell is looking forward to linking the long-term pay and energy transition while the shareholders’ vote will be held in 2020.
On behalf of Aviva investors, David Cumming stated the investors are highly concerned about the social and ecological metrics, which involves carbon emissions. He further mentioned the power is growing, which is evident from the investment from the so-called ESG or Environmental, Social, and Governance.
Shell is in conversation with the investors to know the exact figure of carbon emission so the targets are set accordingly. Also, this will lead to an accurate assessment of the payment, which might get affected. However, it is estimated that approximately 1,300 executives from the high-level will be employed.
Shell is looking forward to setting smaller targets so these are accomplished easily. Now, it has arranged a target of 3 to 5 years that will involve the target of net carbon footprint. This decision was taken after it encountered with a criticism the last year due to the long-term ambition. The ambition was to make the emission of carbon dioxide, half of what it is now, by 2050. Not only had this seemed unrealistic but also without any binding target.
Therefore, Shell has now opted for a joint statement with a team of 310 investors who have assets worth $32 trillion or £25 trillion under management.