Dutch pension fund ABP will vote against Shell’s climate strategy at the company’s shareholder meeting, it has announced.

It said its decision to vote against the strategy was based on the fact that Shell does not meet all the criteria that ABP sets in its voting policy for companies with a large climate impact.

ABP supports a shareholder proposal by Follow This that calls on Shell to set more ambitious climate target.

The pension fund is a shareholder in Shell and has committed to continuing to exercise its rights as a shareholder as long as the reduction of investments in fossil producers has not been completed.

ABP announced in October last year that it would stop investing in producers of fossil fuels, such as oil, gas and coal, which has amounted to €15bn since 31 December 2020, and the majority of the investments are expected to have been sold in the first quarter of 2023.

The pension fund also detailed that they are in the process of “very carefully” reducing fossil investments, whilst also tightening its voting policy for companies in the energy sector and for all other companies with a major climate impact.

Last year, Shell’s climate strategy received 89 per cent of shareholder votes, with ABP voting in favour at the time.

Follow This’s resolution won 30 per cent of the vote last year, with ABP abstaining.

The tightened voting policy for climate applies to approximately 2,000 listed companies in which ABP invests, and this concerns companies in the energy sector and in other sectors that have a major impact on the climate such as mining, steel and transport sectors.

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