Energy Efficiency, GHG Emissions, Industrial - December 3, 2018
Shell to link pay to interim targets
Shell announced plans to link executive pay to the meeting of its energy targets, one of a series of steps aimed to help meet their target to reduce the company’s net carbon footprint by around half by 2050, including an interim target of around
A joint statement issued on Dec. 3 by Royal Dutch Shell plc (Shell) and a leadership group of institutional investors on behalf of Climate Action 100+ said Shell will “incorporate a link between energy transition and long-term remuneration as part of its revised Remuneration Policy. If approved by a shareholder vote at their 2020 Annual Meeting, the policy will include a net carbon footprint-related measure, as well as other measures, to create “a balance of leading and lagging performance metrics over a three-or five-year performance period. The measures for each performance period will be set on an annual rolling basis at the time of the award and will be subject to the annual remuneration target-setting process as well as to the final plan design.”
Shell also announced in the statement that in order to meet its 2050 target, the company will start setting specific shorter-term targets. A target will be set for each year for the next three- or five-year period starting in 2020 and running through 2050.
The company will also publish an update on its progress towards lowering its Net Carbon Footprint. At first, this disclosure will be made in the Sustainability Report, but will eventually be integrated into the company’s Annual Report as appropriate.
Affirming their support of the Paris Agreement, Shell said in the statement: “Tackling climate change is a multi-generational challenge for society, including businesses, governments and consumers,” adding that “Shell aims to grow its business in areas that will be essential in the energy transition, and where it sees growth in demand over the next decades.”