Have to Shell more in green energy investing?

Posted on 13-05-2016 at 19:01 by MauritsH – 19 Comments”

An interesting discussion on the Friday night.

The plan Follow This

Shell and durable seem on the eye, fairly at right angles to each other. Oil and gas are normally associated with anything where the environment is suffering and what, therefore, is not sustainable. The commodity company is investing actually in renewable energy, but according to a few shareholders is not enough. They launched Follow This, an initiative with which one wants to enforce that sustainability at Shell on the agenda.

The policy that is followed, is at least remarkable. The organization gathered a group of 1,000 people, who all together for an amount of 5 million shares to Shell bought. Enough for the right to speak at the shareholders meeting of the oil and gasboer and da’s of course exactly where it is all about.

Follow This fear that Shell for too long, and too much investing in fossil fuels (see eg the city car in collaboration with Gordon Murray was presented) and that, thereby, his own future prospects for the neck to rotate. That has major consequences, because many parties have interests in the energy company. Also bear in mind pension funds. As soon as that their invested money can depreciate, the turnips are well cooked. That may be clear.

Oh, Shell shows through the Eco-marathon also some attention to the environment, but that is mainly a PR thing. Goal is to attract investments in sustainable energy at the upcoming shareholders ‘ meeting (24 may) to bring the attention of the high lords of the commodity company.

The shareholders

On the initiative of Follow This is what concerns us little to things. Petrolhead or not, protection of the environment would be high on everyone’s priority list need to, and also at the top of the Shell. Still, we ask ourselves whether the plans are viable.

Shareholders are not necessarily known for their long-term and long-term vision. That’s a pretty gechargeerde description, but dividend and the share price will generally be more important than planning the future of a company for the long term must safeguard, let alone the environment.

At the beginning of this month were the results of Shell is known, the turnover was 49 billion euro. Last year was 66 billion, a decrease of 35 percent! The challenging conditions in the oil industry, as a result of sharply lower oil prices, are now hard to. The costs were last quarter, 50 billion dollars, by a refund of the tax there was still a small plus sign. But, now, the cost is the dividend included in the price: 9 billion euro. Shell will keep the shareholders satisfied, but it would be better to invest in the future.

The critical note

The plan Follow This sounds plausible, and the importance is difficult to underestimate, but we put our doubts on the practical feasibility. Especially that the average shareholder also of the need for investment in green energy can be convinced. Even if that means that the profits and dividends thereby (possibly) in will bags. The shareholder has a major finger in the porridge. In addition, the market price can still fall, at the time that people of their shares, want.

Of course, we are curious as to your opinion with respect to the above. Bring on the rock-solid comments!