HSE Now Article Shell Ties Executive Pay to Cuts in Carbon Emissions

CBS News


Royal Dutch Shell is changing its tune on carbon, saying it will tie executive pay to shorter-term reductions in emissions. Shareholders will vote on the revisions in 2020. Shell's announcement marks a change in stance by Chief Executive Officer Ben van Beurden, who for years rejected investor demands that Shell detail its plans to curtail emissions, saying it would make the company more vulnerable to lawsuits. "Meeting the challenge of tackling climate change requires unprecedented collaboration, and this is demonstrated by our engagements with investors," the Shell chief said in a statement. "This joint statement is the first of its kind, sets a benchmark for the rest of the oil and gas sector, and shows the benefit of engagement—aligning institutional investors' long-term interests with Shell's desire to be at the forefront of the energy transition," Matthews said.