Following close dialogue with pension fund manager APG, Shell announced today that it will, in the foreseeable future, set targets to reduce its net carbon footprint in the long term.

This is to contribute to the realisation of the Paris Agreement and to combat climate change. Shell now wants to link these goals to the remuneration of top management, APG said in a statement.

On behalf of ABP, the largest pension fund for which APG works, chairman Corien Wortmann stated: "This is an important step, as Shell's management is making further progress towards contributing to achieving Paris's climate goals.”

Shell signed the statement together with institutional investors representing a total of $32bn assets and jointly on behalf of the investor initiative Climate Action 100+.

That Shell now has joined in a pledge to combat climate change shows a growing engagement in the area of sustainability and ESG, APG said.

“That Shell has now embedded its ambition in its remuneration policy offers confidence that Shell is really committed to it.

“Long-term responsible investors and shareholders in Shell, we keep in touch with the company and follow the progress with interest, and we hope that other companies will follow Shell," Wortmann said.

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