Published on : Feb 03, 2015
Shell is all set to witness the consequences of climate change that may reflect upon the company in future. This is backed by a resolution from shareholders who are basically activists. This came at a time when Shell announced cost cutting measures worth US$15 billion as result of declining oil prices. Shell also declared that the company would like to continue the oil drilling activities in region of the Arctic.
This particular resolution was filed by almost 150 investors who have the responsibility of managing billions of pounds. The resolution basically requires Shell to evaluate the compatibility of its business model with the global pledge that pertains to the reduction of global warming the target of 2C. The target of 2C refers to the fact that only 1/4th of the currently available reserves of fossil fuel can be utilized. This as a result means that huge amounts of dollars of coal, gas, and oil that are in the hands of investors may just about become worthless and relentless exploitation of fossil fuels may end up becoming pointless.
This resolution which was also filed by BP, involves a ban on corporate incentives and bonuses which pertain to climate affecting activities, and also a commitment of investing in non-conventional sources of energy. According to a company executive, this could bring about a certain change that would demonstrate the effectiveness of the strategies of activists for dealing with and managing climate change. Shell as a corporate entity maintains its commitment to interact with the company shareholders in this particular area.