Shell To Tether Executive Income With Carbon Emission Target

Royal Dutch Shell (LON:RDSa) plc RDS.A announced its decision to link remunerations of its executives with targets for carbon reduction initiatives. This step of fixing high-level employees’ compensations is the first time by any energy company to combat climate change.

The decline in Shell’s carbon emissions is expected to be satisfied by several short-term targets, awaiting votes from shareholders in the 2020annual general meeting. Notably, the energy major will likely commence implementing targets every year for shorter periods — three to five years — from 2020 through 2050.

Investors, including Church of England Pensions Board and asset management firm Robeco, have been pressing the energy major to take such strong initiatives and save the earth from climate change.

BBC News claimed that Shell has been discussing with investors to fix the exact emission target of carbon and the proportions of executives’ pay to be linked. The source added that remunerations of roughly 1,300 executives will be affected.

Headquartered in London, Shell is involved in exploring and producing oil and natural gas along with refining the commodities. The company also has a presence in chemicals businesses. Presently, the stock carries a Zacks Rank #3 (Hold).

Meanwhile, a few better-ranked players in the energy sector are TC PipeLines, LP (NYSE:TCP) ,Eni SpA (NYSE:E) and Enterprise Products Partners L.P. (NYSE:EPD) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

TC PipeLines beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 15.6%.

Eni managed to beat the Zacks Consensus Estimate in three of the past four quarters.

Enterprise Products surpassed the Zacks Consensus Estimate in the last four quarters, the average positive earnings surprise being 9.3%.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>