Campaigners target Aviva and Legal & General over Shell and BP votes
Make My Money Matter has accused two of the country’s largest pension providers of failing to enhance their climate stewardship during this year’s AGM season
The campaign group welcomed that both pension providers voted against Shell’s Energy Transition Strategy during the May AGM.
The Anglo-Dutch oil giant had proposed a new Energy Transition Strategy, which did not include any interim emissions reduction targets for 2035 and heavily relied on expanding its production of Liquified Natural Gas as a transition strategy—a move criticised by climate campaigners. Ultimately, nearly 80% of shareholders backed Shell’s Energy Transition Strategy.
Shell also faced a prominent shareholder campaign this year, which put forward an advisory resolution demanding that the oil giant align its Scope 3 emissions with the Paris Agreement. Despite the backing of 27 major institutions with more than €4trn in assets, a clear majority of shareholders dismissed the climate activist resolution supported by Follow This.
Focus on fossil fuel executives
Make My Money Matter’s primary concern is that both pension providers backed the reappointment of Shell and BP’s leadership and remuneration, despite both firms showing no intention of increasing their climate ambitions.
Tony Burdon, CEO of Make My Money Matter, said: “Given the climate leadership Aviva and Legal & General have shown in recent years, we were shocked to see their almost complete support for Shell and BP at this year’s AGMs. In a climate and nature emergency, voting in support of fossil fuel companies that are not seriously transitioning to 1.5°C puts the pensions and retirement of millions of UK savers at risk, along with the world they will retire into. We call on the UK pensions industry to vote against the chairs, directors, remuneration, auditors, and plans of these companies.”
Make My Money Matter is now targeting both pension providers with a publicity campaign, urging them to vote against the chairs, directors, remuneration, accounts, auditors, and transition plans of all oil and gas companies that are not aligned with science-based targets for net zero, including those planning new exploration and development contrary to the International Energy Agency's net zero scenarios.
A spokesperson for Aviva responded to the campaign: “The oil and gas sector is critical to the economy as a source of energy, while users of energy seek to transition away from fossil fuels. We have found that a whole-economy approach, balancing both the demand for energy and the supply of energy, can provide superior outcomes for our customers’ financial returns as well as delivering a sustainable outcome.”
Legal & General also responded, emphasising its belief that it is important to remain invested in high-emission companies, as they play a crucial role in the energy transition.
“As a large, global asset manager, we take our role as a responsible investor on behalf of our clients very seriously. Climate change is a critical issue of global concern. We engage actively and constructively with companies on the transition to a low-carbon, net-zero economy,” a spokesperson said.
Aviva and Legal & General have been approached by Net Zero Investor to clarify their voting track records at the Shell and BP AGM. Aviva confirmed that it has indeed opposed Shell's Energy Transition strategy but did not back the Follow This resolution. It did also backed the reappointment of the firm's leadership and remuneration. Legal & General released its voting track record on ISS which shows that the firm did indeed oppose Shell's Energy Transition Strategy but voted in favour of all other management proposals. It also did not back the Follow This resolution.
Shell AGM: shareholders back new Energy Transition Strategy
This article has been amended on 16.8. to update the information on Aviva and Legal & General's votes at the Shell AGM.
