Schemes have been urged to vote against executive pay proposals at both Shell and BP in protest against incentives to increase short term production.
Savers supported by ClientEarth and ShareAction have written to schemes and providers with a total of over £2trn assets under management, to take action at the AGMs at the end of May.
There has been mounting pressure from shareholders for companies to relate how much they pay to executives to the sorts of investments a firm holds for the long term.
Demands from savers are based on research by ShareAction that highlights how both BP's and Shell's proposed pay policies incentivise management to focus on growing the volume of oil and gas brought to market.
For many UK pension schemes using index tracking equity products, Shell is their biggest single holding, as the company has the largest market cap weighting in the FTSE index.
ShareAction chief executive Catherine Howarth said: "Prudent trustees must act in their members' long-term best interests, and this includes saying no to executive pay proposals in the oil and gas sector that incentivise short term production.
"Savers are increasingly alert to the financial risks of climate change and its mismanagement by high carbon companies. They are right to demand close attention by their fiduciaries to these factors."
This is the first time in three years that investors in BP and Shell have a binding vote on remuneration for executive directors.
This follows a major rebellion at BP's AGM last year on its advisory pay vote from which there has been significant engagement between shareholders and the company's remuneration committee.
ClientEarth pensions lawyer Natalie Smith added: "ClientEarth is supporting these members to make full use of the law to protect their rights. We'll be watching how pension funds vote on these remuneration policies, and will be ready to take action where necessary."
The providers written to include the National Employment Savings Trust, Aviva, Standard Life, Zurich, HSBC, The Pensions Trust, Universities Superannuation Scheme (USS) and Aegon.
NEST head of responsible investment Diandra Soobiah said: "We monitor company activities to protect our members' investments and achieve good outcomes over the longer term. We're engaging with our global equity fund manager and proxy voting agency in the run up to the companies' AGMs to ensure the right decisions are made in our members' interests.
"We recognise that BP have taken action to reduce executive pay and link incentives more closely with carbon reduction targets, which is positive in our view, but we're looking into whether it goes far enough. We're more concerned about the lack of similar progress at Shell. It's important to us that we're reflecting all our members' needs as best as possible so we welcome them raising issues with us."
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