Shareholder activism has a long history in commodities. In the early 17th century, Isaac Le Maire, grain trader and disgruntled former governor of the Dutch East India Company, attempted to break the company’s monopoly by speculatively trading its shares.
His scheme failed, but Le Maire’s desire to shake up the status quo of the trade route between Europe and India eventually led to the discovery of Cape Horn.
Skip forward 400 years and shareholder activism in another Dutch-origin resources giant has taken on a less selfish hue.
In December, the Church of England, along with other investors in Shell, helped to persuade the energy giant to commit to setting targets to cut its carbon footprint by 20 per cent by 2035 and half by 2050. The company’s achievements in reducing carbon emissions is to be linked to executive pay, subject to a shareholder vote in 2020.
The commitment by Shell came in the wake of a startling special report by the Intergovernmental Panel on Climate Change, published in October. The report, commissioned following the 2015 Paris agreement, charts the consequences of a 1.5° Celsius rise in global temperatures from pre-industrial levels.
The Paris agreement commits signatories to taking action to limit temperature rises “well below” 2°C, although many poorer and low-lying coastal countries felt this did not go far enough, and wanted an agreement to limit rises to 1.5°C. Global temperatures have already climbed by around 1°C since pre-industrial times.
The significant findings of the IPCC special report are that serious environmental changes occur at lower temperatures than previously thought and, while more damaging than a 1°C rise, 1.5°C represents a much more habitable planet than 2°C.
One important factor in these changes is the potential feedback loops at certain critical trigger points, for example, the thawing of the northern permafrost, or melting of large sections of polar ice caps. Such events would release large amounts of additional greenhouse gases, or lead to large rises in sea levels. Such events could create feedback loops in the global climate system, locking in further heating of the planet.
So far, so terrifying. But there’s more.
Current commitments by national governments are expected to lead to around 3°C of warming by 2100, with further warming beyond that date. The IEA said in its latest World Energy Outlook that CO2 emissions under planned policies are on a slow upward trend to 2040, and are “far out of step” with what is needed to tackle climate change.
The IPCC says staying within a 1.5°C rise requires “rapid and far-reaching transitions in energy, land, urban and infrastructure (including transport and building), and industrial systems” that are “unprecedented in terms of scale, but not necessarily in terms of speed”. On the current course, global warming is expected to reach 1.5°C between 2030 and 2052. Limiting temperature rises to 1.5°C requires a 45 per cent reduction in anthropogenic CO2 emissions (those produced by human activities) by 2030 from 2010 levels, and net zero by 2050, according to the IPCC report.
The scale of the challenge highlights the importance of commitments made by the likes of Shell, and the influence shareholders can have in the fight against climate change. National governments – on current commitments – will fall short of their obligations. And with important consumer and producer countries such as the US and Brazil under climate-change-sceptical leaderships, the onus falls increasingly on other sections of society.
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The motive goes beyond the purely altruistic, though. Agricultural companies’ businesses could be devastated by climate change, with crop yields potentially falling, and harvests failing more often. And energy giants could find themselves owners of billions of dollars of stranded assets, should climate change come to be taken seriously enough to keep fossil fuels in the ground.
Following its success with Shell, the Church Commissioners for England, along with the head of New York State's retirement fund, Thomas DiNapoli, turned their attention to American giant ExxonMobil. Shortly before Christmas, the investor-campaigners filed a shareholder resolution for consideration at the energy major's next annual meeting requiring it disclose greenhouse gas reduction targets for the short, medium and long-term, in an effort to limit global temperature increases to 1.5°C.
But the campaigners could have their work cut out. This month, the US Supreme Court rejected ExxonMobil’s attempt to block the Massachusetts Attorney General’s investigation into the major’s research into climate change.
As pressure mounts on the energy industry to change, both from governments and from shareholders, we may yet see more companies taking a lead on climate change policy.
James Burgess is editor at S&P Global Platts
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
War
Director: Siddharth Anand
Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor
Rating: Two out of five stars
STAY%2C%20DAUGHTER
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3EYasmin%20Azad%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3ESwift%20Press%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAvailable%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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Political flags or banners
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Bikes, skateboards or scooters
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
UAE currency: the story behind the money in your pockets
Uefa Nations League
League A:
Germany, Portugal, Belgium, Spain, France, England, Switzerland, Italy, Poland, Iceland, Croatia, Netherlands
League B:
Austria, Wales, Russia, Slovakia, Sweden, Ukraine, Republic of Ireland, Bosnia-Herzegovina, Northern Ireland, Denmark, Czech Republic, Turkey
League C:
Hungary, Romania, Scotland, Slovenia, Greece, Serbia, Albania, Norway, Montenegro, Israel, Bulgaria, Finland, Cyprus, Estonia, Lithuania
League D:
Azerbaijan, Macedonia, Belarus, Georgia, Armenia, Latvia, Faroe Islands, Luxembourg, Kazakhstan, Moldova, Liechtenstein, Malta, Andorra, Kosovo, San Marino, Gibraltar
UAE rugby in numbers
5 - Year sponsorship deal between Hesco and Jebel Ali Dragons
700 - Dubai Hurricanes had more than 700 playing members last season between their mini and youth, men's and women's teams
Dh600,000 - Dubai Exiles' budget for pitch and court hire next season, for their rugby, netball and cricket teams
Dh1.8m - Dubai Hurricanes' overall budget for next season
Dh2.8m - Dubai Exiles’ overall budget for next season
Rocketman
Director: Dexter Fletcher
Starring: Taron Egerton, Richard Madden, Jamie Bell
Rating: 3 out of 5 stars
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
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%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Envision%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2017%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EKarthik%20Mahadevan%20and%20Karthik%20Kannan%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20The%20Netherlands%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Technology%2FAssistive%20Technology%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20%241.5%20million%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2020%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Seed%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%204impact%2C%20ABN%20Amro%2C%20Impact%20Ventures%20and%20group%20of%20angels%3C%2Fp%3E%0A
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
