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142 investors target Shell over tar sands

2009

An investor coalition in the UK has filed a resolution at Shell over the firm’s oil extraction from tar sands.

142 institutional and individual investors have tabled a request that Shell reports to its owners on the investment risks associated with its tar sands projects in Canada.

The resolution, which will be voted on at Shell's AGM on 10 May, is led by FairPensions, a UK-based campaign group that promotes sustainable investment in the pensions and investment industry.

FairPensions claims that 30 per cent of Shell’s reserves are in Canadian tar sands and that, in the event of mandatory carbon pricing, the price of a barrel could rise by $11 on the product by 2030.

The resolution says the investors have ‘concerns for the long term success of the company arising from the risks associated with oil sands’ and that the board should commission a report ‘setting out the assumptions made by the company in deciding to proceed with oil sands projects regarding future carbon prices, oil price volatility, demand for oil, anticipated regulation of greenhouse gas emissions, and legal and reputational risks arising from local environmental damage and impairment of traditional livelihoods.’

Extracting oil from tar sands is one of the most environmentally damaging human activities, releasing three times as much carbon dioxide as normal oil production and causing the world’s fastest deforestation after that in the Amazon rainforest region. Five per cent of Canada’s greenhouse gas emissions are thought to come from the activity. 



Further Information
http://ethicalp.com/shell_tar
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