A new report from Follow This shows strong support for the Paris Accords from UK funds. “The voting rationales of the UK’s ten largest asset managers reflect that none of the asset managers believe Shell and BP’s strategies are Paris aligned despite the companies’ claims that they are.”

From the report:

• In 2022, the ten largest UK asset managers express overwhelming support for Paris aligned emission reduction targets at Oil Majors (Table 1) whereby:

o Top 10 UK asset managers express modest support for climate resolutions requesting Paris aligned emission reduction targets at Shell and BP, and vote consistently in favor of the Follow This climate resolutions in the US

• Dichotomy in top 4 largest UK asset managers in climate voting at Shell and BP
o Schroders and HSBC were the only top 10 UK investors to vote in favor of climate resolutions at both Shell and BP
o LGIM and Abrdn relied on engagement and rewarded ‘progress’ by Shell and BP

• The top 10 UK asset managers continue to increase support for the Follow This climateresolutions over the course of 2017-2022 (Table 2 and Table 3)
• Say on Climate resolutions at BP and Shell lead to confusing voting outcomes and allowcompanies to claim overwhelming shareholder support for insufficient strategies

o The Aviva vote in favor of Follow This and against Shell represents the only unambiguous request for Paris alignment from the top 10 UK investors