Shell Challenged on Net Zero After Fossil-Fuel Investment Boost
- The company’s new investment strategy angers climate activists
- CEO says approaching transition with ‘humility, flexibility’
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Legal & General Investment Management, the UK’s largest asset manager, said it wants Shell Plc to explain how it thinks it can still reach net zero emissions by 2050 while ratcheting up investments in fossil fuels.
Shell said Wednesday it intends to devote an ever larger chunk of annual spending to oil and gas, a strategy that’s been dubbed “catastrophic” by climate activists. Shell says it can still deliver on its pledge to shareholders to eliminate emissions by mid-century, but didn’t say how. At the same time, the company signaled it will restrict spending on renewable energy projects to those it thinks can compete with the returns of its fossil-fuel business.