GLOBAL - A coalition of 141 institutional and individual investors has demanded oil giant Shell report on the investment risks associated with its controversial Canadian oil sands project.
Signatories to the resolution - including The Co-operative Asset Management and the UNISON Staff Pension Scheme - pointed to "concerns for the long-term success of the company arising from the risks associated with oil sands".
Most of the signatories were in the UK, with some located in the US and Ireland.
The resolution - coordinated by responsible investment campaigners FairPensions - will be put to the Shell board at the company's annual general meeting on May 18.
In the document investors said they were particularly uneasy about the potential impact of:
- expected carbon price rises
- oil price volatility
- expected fluctuations in demand
- regulation of greenhouse gas emissions
- the legal and reputational risks arising from environmental damage and impairment of traditional livelihoods
FairPensions director of campaigns Duncan Exley said there was a "growing coalition of people on board" amid mounting concerns about the financial, environmental and social implications of such projects.
And he urged investors to engage with other energy companies with similar operations to address the risks involved.
The Co-operative Asset Management head of responsible investing Niall O'Shea said Shell had gone "nowhere near far enough" in its efforts to allay investment concerns over the projects.
He added: "Given Shell's level of commitment to oil sands there is a greater obligation to shareholders to spell out how it will cope under a number of scenarios.
"What if carbon capture and storage proves too costly in the oil sands? And what if sustained high oil prices and carbon regulation combine to lead to switching away from marginal, high-cost, high-carbon sources?
"Companies must be more rigorous and transparent with their investors."
Shell has not yet responded to requests for comment.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.