Shell’s gamble on gas under scrutiny at AGM

The Australasian Centre for Corporate Responsibility (ACCR) is commenting on the results of Shell’s 2025 annual general meeting (AGM).

20.55% voted FOR a shareholder resolution asking Shell to justify the assumptions behind its LNG growth strategy and explain how it’s consistent with the company’s climate commitments.

The resolution was filed by Brunel Pension Partnership, Greater Manchester Pension Fund and Merseyside Pension Fund, which have combined assets under management of US$86 billion.

ACCR is also a co-filer and UK-based responsible investment NGO, ShareAction, supported the filing along with more than 100 individual shareholders.

Commenting on the results, Nick Mazan, Company Strategy, UK Lead, ACCR, said:

“Shareholders have sent a strong signal to Shell that the quality of its disclosures is out of step with the size of the bet it is taking on LNG.

“This is a clear call from investors for better disclosure from Shell, so they can properly appraise the material risks of its LNG strategy. This includes the risk that the company won’t be able to meet its climate commitments, and the risk of value destruction if the LNG prices or demand are weaker than Shell is expecting.”

“This resolution has generated hard conversations and increased scrutiny over the company’s LNG strategy which will continue long after this proxy season has ended.

“It is essential investors continue to engage with Shell for greater transparency around its LNG strategy – which is not backed by energy market fundamentals or independent forecasts.”

Vaishnavi Ravishankar, Head of Stewardship, Brunel Pension Partnership, said:

“We continue to raise concerns about the lack of visibility around Shell's pathway to net zero post 2030. The assertion that they are Paris aligned while considerably expanding their LNG business does not add up. The resolution challenged the board to provide an honest discourse about their trajectory and next steps.

“We are pleased with the substantive conversations that this resolution has led to, between portfolio managers and the company around its ability to achieve its climate commitment alongside its ambitious LNG strategy. The fact that the company has conceded that further transparency is needed and made commitments is a positive development – however, it is important that disclosures are indeed enhanced as opposed to repackaged.”

“The quantum of support for this resolution in this difficult environment is promising. This resolution has provided an opportunity for investors to amplify dialogue and reinforce the challenge to the company that it needs to think deeply about its place in the energy transition and provide transparency to enable investors to appraise the risks to value generation.

“It's been really positive to see investor engagement around the asks of this resolution. It has provided an opportunity for investors to amplify dialogue and reinforce the challenge to the company that it needs to think deeply about its place in the energy transition and provide transparency to enable investors to appraise the risks to value generation.”

Peter Wallach, Director of Pensions, Merseyside Pension Fund said:

“By making a commitment to enhance its disclosures before the 2026 AGM, it is encouraging that Shell has recognised that these have been insufficient. Investors will be watching closely to make sure that these meet their expectations of assuaging the significant concerns with its bullish LNG strategy.”

Sandra Stewart, Chief Executive, Greater Manchester Pension Fund said:

“Shell is making investments in LNG today that will be operating in 25-plus years. It is crucial that it provides information which allows investors to evaluate whether the Company’s LNG strategy will deliver long-term value in the energy transition without undermining its climate commitments.

“This resolution has brought much needed attention to the overoptimistic forecasts for LNG demand across the sector. Other oil and gas companies should now be on notice for the increased need for greater rigor in the assumptions that underpin their LNG strategies.

“We remain concerned about Shell's ability to grow its LNG business while remaining credibly committed to its climate targets. Our intensive engagements with the company did not assuage these concerns, so we exercised our rights as shareholders to seek greater transparency for all by filing this resolution.”

Jackie Garton, Senior Corporate Climate Campaign Manager at ShareAction, said:

"This resolution clearly shows that both institutional and individual investors are concerned about Shell's climate plans and in particular the lack of transparency over the risks associated with its liquefied natural gas strategy.

"It's encouraging to see responsible investors use their shareholder rights to spotlight Shell's shortcomings. It's clear they want fossil fuel companies to do better on climate – not only to protect the resilience of their portfolios but to ensure we can all live in a safe and healthy world for generations to come."