Shell, in contrast to BP, allows AGM vote on Follow This climate resolution

Shell, in contrast to BP, allows AGM vote on Follow This climate resolution

Shell and BP's Approaches to Climate Resolutions at AGMs

LONDON, April 14 (Reuters) - Shell will allow its shareholders to vote on a resolution tabled by climate activist investor group Follow This at its annual general meeting, recommending a vote against it, according to its notice of meeting.

BP's Decision and Shareholder Response

This stands in contrast to BP, whose board decided not to include the Follow This resolution on its agenda, triggering some of its shareholders and influential proxy adviser groups to recommend votes against the board's wishes. 

The Follow This Resolution Explained

Resolution Objectives

The Follow This resolution calls on Shell to disclose how its strategy would perform under scenarios of declining demand for oil and gas. BP has said the resolution was invalid and would be ineffective if it were to pass at its AGM.

Shell's Response to the Resolution

Shell said Follow This's questions are comprehensively covered by Shell's existing disclosures which enable shareholders to model the financial resilience of the company in any price scenario of their choosing. 

Governance Concerns

Shell also said that were the Follow This resolution to pass, it would be against good governance because it would hold Shell to certain scenarios that are subject to change.

(Reporting by Shadia Nasralla; Editing by Kirsten Donovan)