“This is a significant achievement, something that has never happened before in the field of engagement: a company and its shareholders acting together on climate change,” said Carola van Lamoen, Head of Robeco’s Active Ownership team. “This shows that dialogue can work, and is an effective way to bring about change.”

Shell was already the first oil and gas company to introduce an ambition to reduce its carbon footprint. Now the company will set short-term targets and link these to executive remuneration, subject to shareholder approval in 2020.

Earlier this year, Robeco was signatory to an appeal from 60 investment firms appearing in the Financial Times that encouraged all companies in the oil and gas sector to clarify how they see their future in a low-carbon world. Robeco also spoke at Shell’s 2018 shareholder meeting on behalf of a large group of institutional investors. “Only committing Shell to a climate scenario puts the company at a disadvantage in many respects,” said van Lamoen. “Our engagement must be much broader, so we encourage other companies in this sector to take responsibility in preparing for the energy transition."

Please find here the joint statement between institutional investors on behalf of Climate Action 100+ and Royal Dutch Shell plc (Shell)