Shell To Tether Executive Income With Carbon Emission Target
Zacks Investment Research | Dec 03, 2018 09:29PM ET
Royal Dutch Shell (LON:RDSa) plc RDS.A announced its decision to link remunerations of its executives with targets for carbon reduction initiatives. This step of fixing high-level employees’ compensations is the first time by any energy company to combat climate change.
The decline in Shell’s carbon emissions is expected to be satisfied by several short-term targets, awaiting votes from shareholders in the 2020annual general meeting. Notably, the energy major will likely commence implementing targets every year for shorter periods — three to five years — from 2020 through 2050.
Investors, including Church of England Pensions Board and asset management firm Robeco, have been pressing the energy major to take such strong initiatives and save the earth from climate change.
BBC News claimed that Shell has been discussing with investors to fix the exact emission target of carbon and the proportions of executives’ pay to be linked. The source added that remunerations of roughly 1,300 executives will be affected.
Headquartered in London, Shell is involved in exploring and producing oil and natural gas along with refining the commodities. The company also has a presence in chemicals businesses. Presently, the stock carries a Zacks Rank #3 (Hold).
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.