ROYAL Dutch Shell has come under renewed pressure to move faster to help tackle the threat posed by climate change.
At Shell’s annual general meeting around 30 per cent of votes cast supported a resolution submitted by the Follow This campaign group calling for the oil giant to set tougher emissions reductions targets.
A similar resolution won the support of around 14% of votes cast at last year’s general meeting.
However, around 90 per cent of votes cast at yesterday’s meeting supported the company’s energy transition strategy.
Shell has said it will continue to invest in developing new oil and gas fields to help meet expected demand for energy, while aiming to become a net zero company by 2050, in terms of greenhouse gas emissions.
READ MORE: Scot to chair Shell board as oil gaint looks to navigate energy transition
The company will increase investment in areas such as renewables and initiatives to reduce emissions across the supply chain.
On Monday the International Energy Agency said firms should not develop new oil and gas fields.
The Paris-based watchdog said the climate pledges made by governments to date – even if fully achieved – would fall well short of what is required to bring global energy-related carbon dioxide emissions to net zero by 2050.
It said there needed to be a massive increase in spending on renewables along with changes in behaviour if the net zero target were to be met.
However, industry champions say new oil and gas fields will be needed to help meet global demand for energy while alternative sources are developed.
READ MORE: Plans to develop billion barrel oil field off Shetland set to be revived
Brent crude rose above $70 per barrel for the first time since March yesterday amid expectations demand will increase as coronavirus lockdowns are eased around the world.
The price fell below $20/bbl in April last year, from around $70/bbl before the start of the pandemic.
Meanwhile, an oil and gas firm run by one of the North Sea’s most successful entrepreneurs is eyeing new prospects overseas.
The Trinity Exploration and Production business run by Bruce Dingwall noted that it had formed a partnership with a FTSE 250 company to evaluate significant opportunities in Trinidad.
READ MORE: Edinburgh oil firm eyes acreage on Caribbean island
Trinity, which runs its business development function from Edinburgh, did not name the company concerned. Last month Trinity said it was evaluating opportunities on and offshore Trinidad with Edinburgh-based Cairn Energy.
“We are passionate about sustainability and reducing emissions and measure our performance not only in terms of our financial and production delivery, but also in terms of our environmental and social impact,” said Trinity yesterday in its annual results announcement.
The company noted it recently signed an agreement to work with the University of the West Indies to advance renewable projects in Trinidad and Tobago and the wider Caribbean region.
Trinity increased profit before exceptionals to $2.6m (£1.8m) in 2020, from $2.4m in the preceding year, helped by changes to the tax regime in Trinidad and Tobago.
Mr Dingwall founded Trinity after helping to develop Venture Production into one of the biggest independents operating in the North Sea. Scottish Gas owner Centrica bought Venture for £1.3 billion in 2009.
READ MORE: Shell underlines value of North Sea business after cutting Aberdeen jobs
Shell chief executive Ben van Beurden said the company would seek to fully understand the reason why shareholders voted as they did at yesterday’s AGM, particularly those who voted both for Shell’s strategy and for the Follow This resolution. It will formally report back to investors within six months.
The IEA advises governments but has no power to require them to change policies.
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