Statement by MN at Shell AGM, May 23rd 2023

''Dear Mr. Chairman, Dear fellow shareholders, my name is Xander Urbach, and I am here on behalf of MN and Pensioenfonds Metaal en Techniek (PMT). I am making this statement as part of the Climate Action 100+ lead investor group, also including PGGM Investments and the Phoenix Group. We aim to provide Shell with long-term support and critical feedback throughout its energy transition journey.

Shell is a leader among oil and gas companies in the energy transition. For example, it has set multiple intensity targets, including scope 3 emissions, has acquired Europe’s largest renewable natural gas company and is building Europe’s largest green hydrogen plant.

However, the current energy crisis shows that the decarbonization journey does not follow a straight line. And this journey is not Shell’s alone either. The energy transition will only happen through joint efforts of investors, policymakers and energy-consuming companies.

Nevertheless, we believe Shell can take further and bolder steps to enable the world’s energy transition. We currently do not have sufficient evidence that your company’s climate strategy is aligned with the goals of the Paris Agreement. We acknowledge the energy trilemma, but that should not become a Bermuda triangle in which the climate ambitions of energy companies vanish.

This leads us to our three strong recommendations for Shell in order to safeguard the long term interest of the underlying pension beneficiaries we represent: 1. Firstly, we encourage your management and Board to remain committed to your announced expected reduction in oil production of around 1-2% each year. Shell has the flexibility to meet current energy demands without changing its course, and we trust you agree that maintaining these goals will strongly signal to the world that your company takes its commitments seriously.

2. Secondly, we request that you are more explicit about your low-carbon strategy. Shell has the capital and know-how to supply and shape the demand for low-carbon alternatives to its customers and to help them transition, as well. It is critical that you disclose concrete 2030 targets for your chosen low-carbon areas, the relevant capex plans to support them, a projection of related sales energy mix, and a commitment that your company will accelerate these targets over time.

3. Finally, we encourage you to show to your shareholders how your transition strategy contributes to a decline in absolute emissions in line with the goals of the Paris Agreement. Specifically, we request that you explain how the individual components of your current carbon intensity targets are contributing to reducing your company’s overall absolute emissions, including upstream and downstream emissions.''