On Monday, Royal Dutch Shell set out plans to introduce industry-leading carbon emissions targets linked to executive pay.
The move comes as governments meet in Poland for a United Nations-hosted conference to lay out a “rule book” to implement the 2015 Paris climate accord.
The 2015 Paris climate accord set goals to phase out fossil fuel use this century, shift towards cleaner energies and help to limit global warming.
Shell’s targets will be introduced in 2020 and they will be more extensive with inclusion of the ‘Scope 3’ emissions from the burning of fuels sold to millions of customers around the world, the company said.
Sacha Sadan, director of corporate governance at Shell investor Legal and General, said: “It is a very strong message from the world’s second-largest oil company. As investors, we will go to other companies about what they can do. Shell are showing that it is hard but doable.”
Shell did not specify any targets on Monday.
But the company plans to link targets and other measures to its executive remuneration policy.
The revised policy will be put to shareholders for approval at its annual meeting in 2020.
Rivals BP and Total have already set short-term targets on reducing carbon dioxide emissions, but these are limited to their own operations.
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