Energy & Environment

Shell To Link Executive Pay To Carbon Footprint Reduction Goals

Shell plans to reduce its net carbon footprint by around half by the year 2050.

 

One Shell Plaza
One Shell Plaza, designed by Skidmore, Owings & Merrill LLP and completed in 1971.

Oil giant Royal Dutch Shell will tie executive pay to carbon footprint goals, the company announced alongside a group of investors. 

Shell plans to reduce its net carbon footprint by around half by the year 2050.

A group of investors called Climate Action 100+ seeks to move greenhouse gas emitters towards the goals of the Paris Climate Agreement.

In a joint statement with Climate Action 100+, Shell announced it will link the pay of its executives to specific carbon footprint targets for three or five year periods between 2020 and 2050.

The move has received praise from environmental groups, though the company is still discussing how exactly it will link targets to pay. 

“Is [the link] going to be bigger than the rewards for expanding oil production? The answer to that will be telling,” said David Doniger with the Natural Resource Defense Council.

In 2016, Reuters reported Shell tied 10 percent of its executive’s bonuses to footprint reduction.

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