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Shell to Tether Executive Income With Carbon Emission Target

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Royal Dutch Shell plc 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 ,Eni SpA (E - Free Report) and Enterprise Products Partners L.P. (EPD - Free Report) . 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%.

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