Nest, London CIV, the Church of England Pensions Board and Brunel Pensions Partnership have announced their intent to vote against Shell directors at its AGM, with Make My Money Matter (MMMM) urging other pension schemes to follow suit.

In particular, Nest confirmed that it will vote against the re-election of Shell’s chair and its ‘Energy Transition’ resolution, as well as supporting a shareholder resolution filed by FollowThis urging Shell to align its carbon reduction targets with the Paris Climate Agreement.

London CIV, meanwhile, has also confirmed that it will vote against the company’s chair and directors later this month, a position supported by PIRC, which also this week recommended that investors vote against the re-election of Shell’s chair in efforts to hold board members accountable for inaction on climate.

Nest and London CIV, which collectively represent almost £78bn, were the latest to announce their plans to vote against the directors, after the Church of England Pensions Board and Brunel Pensions Partnership announced their intent earlier in the week.

The two pension schemes also previously backed a legal claim against the Shell board of directors for allegedly failing to manage the foreseeable risks posed to the company by climate change.

Nest senior responsible investment manager, Katharina Lindmeier, commented: “This AGM season we’ve seen key oil and gas companies in our portfolio failing to properly manage climate risks.

“Shell is pursuing further oil and gas extraction, despite the company being highly exposed to the physical impact of climate change and at risk from carbon taxes and stranded assets.

“Following their record profits, we’d hoped Shell would step up their activities towards meeting their net zero ambitions. Instead, they’re kicking the can down the road and increasing the risks on long-term shareholders.”

Adding to this, London CIV head of responsible investment, Jacqueline Amy Jackson, stated: "Long-term investors should not be dazzled by short-term profits today, when the amount reinvested into the solutions of tomorrow is so derisory.

“With an ambitious net-zero target of 2040, London CIV will do whatever it can, not only to preserve our clients’ long-term investments and the pensions of beneficiaries, but to protect the planet so that they can spend their wealth in a world that’s safe and inhabitable.”

MMMM has since urged the rest of the pensions industry to follow in the footsteps of Nest and London CIV to vote against directors at Shell, with research from the group revealing that over £20bn in UK pension money is invested in Shell.

The analysis estimated that the average UK pension invests £905 in the oil and gas major, despite 22 per cent of pension holders, representing nearly 5 million savers, stating that they would switch if they discovered their pension was invested in Shell.

MMMM’s research also found that 44 per cent of pension holders, over eight million savers, think their scheme should vote against directors at Shell, while more than a third (36 per cent) of pension holders do not want their pension invested in fossil fuel companies expanding oil and gas.

Commenting on the findings, MMMM CEO Tony Burdon, stated: “Shell keeps expanding oil and gas, despite our planet screaming for it to stop.

"But our pensions give us power to change this. With approximately £20bn invested in Shell, the UK pensions industry can play a huge role in pushing Shell to reduce emissions and rule out financing for fossil fuel expansion.

“The pensions industry is adamant that only through engagement can they really make a change in how fossil fuel companies act. Well, now is the moment for it to put its money where its mouth is.

"That’s why Make My Money Matter is calling on the industry to finally flex its muscles in boardrooms this AGM season and vote to make Shell and its polluting peers do better, to protect members savings and our planet. Because you can’t claim to be a leader on climate but continue to support the directors of companies who are driving fossil fuel expansion.”

Commenting in response, a Shell spokesperson stated: “We strongly disagree with the positions against Shell voting recommendations taken by some pension boards and advisors.

“Our strategy remains unchanged - to become a net-zero energy company by 2050 or sooner. And in the last year we’ve continued to invest in low carbon energy and made very good progress towards our targets to reduce emissions.

“At the start of this year we completed our $2bn acquisition of a leading global biogas company, in the last 12 months we have increased the number of EV charge points we own or operate globally by more than 60 per cent. At the same time, we will continue to invest in producing the energy the world needs today and for the foreseeable future. All of our investments have to provide a rate of return that our investors demand.

“We trust a vast majority of shareholders will agree on the need to collaborate in balancing the supply and use of energy to accelerate the energy transition, while reducing the social costs, and we are pleased that ISS and Glass Lewis concur.”

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