With the ongoing reports on the dire state of the environment, Mercy Investment Services continues to press companies to change their operations and policies to reduce their greenhouse gas emissions. As part of Mercy’s participation in the Climate Action 100+ initiative, investors are pleased that international oil and gas company Shell has pledged to reduce its net carbon footprint (including scope 3 emissions) by 20 percent by 2035 and 50 percent by 2050. The company will set interim targets, report annually on its progress and link these goals to executive pay.
Investors have engaged Shell for several years, and the long-term engagement has produced positive results:
- In 2015, at Shell’s encouragement, almost 99 percent of the company’s investors supported a shareholder resolution calling for Shell to share its strategy for addressing the threat of climate change.
- Shell is the first international oil and gas company to pledge to reduce the net carbon footprint of its energy products, including emissions from its own operations, from customer use of its energy products, and from third parties in its supply chains.
- The company helped to develop the Methane Guiding Principles, which set a methane emissions reduction target for Shell and nine other companies who are signatories.
- Shell has pledged to investors that it will review its membership in industry trade associations and assess whether their activities align with Shell’s position on climate change and support of the Paris Agreement. The result of this review will be made public in early 2019.
Mercy Investment Services is encouraged by Shell’s commitment to reducing its carbon footprint and will continue to engage Shell on the issue of climate change as it monitors the company’s progress.