Legal & General Investment Management, the U.K.¡¯s largest asset manager, said it wants Shell to explain how it thinks it can still reach net-zero emissions by 2050 while ratcheting up investments in fossil fuels.
Shell said Wednesday it intends to devote an ever larger chunk of annual spending to oil and gas, a strategy that¡¯s been dubbed ¡°catastrophic¡± by climate activists. Shell says it can still deliver on its pledge to shareholders to eliminate emissions by mid-century, but didn¡¯t say how. At the same time, the company signaled it will restrict spending on renewable energy projects to those it thinks can compete with the returns of its fossil-fuel business.
¡°There is a sense that oil and gas companies want to keep their options open in case the world misses the net-zero by 2050 deadline,¡± said Stephen Beer, senior manager for sustainability and responsible investment at LGIM. ¡°In our engagements with Shell, following its recent announcements, we will be assessing how it matches with our expectations.¡±
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