Major investors are joining with climate activists to push for change. 

A coalition of investors managing assets over $US4 trillion has aligned with the climate activist group Follow This. 

This collaboration marks a bold step to press Shell, one of the world's leading oil companies, to significantly reduce its greenhouse gas emissions. 

The group, featuring Amundi, Europe’s largest asset manager, is set to co-file a shareholder resolution urging Shell to adhere more closely to the Paris Climate Agreement objectives.

The group's recent resolution targets Shell's scope 3 emissions - those resulting from the consumption of its products, which constitute the majority of its emissions footprint. 

The coalition demands Shell to revise its medium-term emission reduction goals to align with the Paris Agreement's ambition of limiting global warming to well below 2 degrees Celsius above pre-industrial levels.

Shell responded to the initiative, asserting its commitment to engaging with shareholders and confidence in its climate targets' alignment with the Paris Agreement. 

The company noted that the 2024 resolution mirrors the one presented in 2023, which did not pass shareholder vote.

The initiative draws together 27 investors, including prominent names like Scottish Widows, Candriam, Rathbones Group, and Edmond de Rothschild Asset Management, who collectively hold about 5 per cent of Shell's stock. 

This marks a strategic victory for Follow This, especially considering the fluctuating support for its resolutions in recent years.

Investors say they advocate for a reevaluation of business models by major carbon emitters to meet global climate targets, highlighting the balance between short-term fossil fuel dependence and the urgent need for a clear transition strategy.

Shell faces growing scrutiny over its environmental impact, particularly after increasing its investment in fossil fuels last year. 

The company is poised to present its energy transition strategy for advisory vote at its annual general meeting in May, a move watched closely by environmentalists and investors as well.