Royal Dutch Shell (LON:RDSA) has unveiled plans to set short-term targets as part of its long-term ambition to reduce the net carbon footprint of its energy products. Reuters noted in its coverage of the news that the move came after investors criticised the Anglo-Dutch group for setting long-term ambitions last year to halve its emissions of carbon dioxide by 2050, which lacked binding targets for implementation.
Shell’s share price has climbed higher in London in today’s session, having gained 2.89 percent to 2,438.50p as of 14:51 GMT. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.48 percent higher at 7,083.32 points.
Shell sets carbon emission targets
Shell announced in a statement developed with institutional investors plans to set short-term targets as part of a long-term ambition to reduce the net carbon footprint of its energy products. The Anglo-Dutch group will set the target each year, for the following three- or five-year period. The target setting process will start from 2020 and will run to 2050.
The FTSE 100 company further plans to link these targets and other measures to its executive remuneration policy. The revised remuneration policy will be put to shareholders for approval at the company’s annual general meeting in 2020.
“Meeting the challenge of tackling climate change requires unprecedented collaboration and this is demonstrated by our engagements with investors,” Shell’s chief executive officer Ben van Beurden commented in the statement.
Analysts weigh in on move
David Cumming of Aviva Investors told the BBC that this was “evidence of the growing power of what they call ESG – environmental, social and governance – investing”.
“Investors are increasingly concerned over environmental and social metrics like carbon emissions […] and encouraging moves like the one seen today,” he added.