Investors file resolutions for LNG and AI oversight at Shell and Berkshire Hathaway

January 9th, 2025

Activist investors have filed shareholder resolutions against Shell and Berkshire Hathaway ahead of both companies’ annual general meetings (AGMs) which are to be held in May.

A coalition of institutional investors, including Brunel Pension Partnership and Greater Manchester Pension Fund, has filed a resolution urging Shell to justify the assumptions behind its liquefied natural gas (LNG) growth strategy and clarify how it aligns with climate commitments.

The Australasian Centre for Corporate Responsibility is also a co-filer and ShareAction supported the filing along with more than 100 individual shareholders.

While Shell plans to expand its LNG business by 20 – 30% by 2030, investors are seeking more transparency around the company determined the demand levels in its LNG projections.

Investors argue that transparency is crucial because Shell holds more uncontracted LNG than any other independent oil and gas company, leaving it highly vulnerable to value erosion if prices fall.

In addition, they point out that Shell’s demand outlook surpasses all scenarios outlined by the International Energy Agency, appears to rely on misinterpreted independent analysis and has not been materially updated despite major shifts in the global energy market.

Therefore, the investors have submitted a resolution for Shell’s AGM in May, asking for more detailed information to evaluate the material risks linked to the company’s LNG portfolio and its approach for managing those risks.

Meanwhile, activist investor Tulipshare has filed a resolution against Berkshire Hathaway, the multibillion-dollar conglomerate led by Warren Buffett, which owns multiple businesses and invests in public stocks.

The resolution calls for the creation of a committee of independent directors to oversee risks related to artificial intelligence (AI) across the companies in its portfolios.

Tulipshare put forward the resolution as it said improper use of AI could result in data leaks, privacy breaches, business disruptions and human-rights violations.

The investor added that Berkshire’s significant influence provides it with a unique opportunity to have precedent-setting impact on its own operations as well as the companies in which it invests.

At Berkshire's 2024 AGM, Buffett acknowledged the significance of AI, likening it to the creation of the atomic bomb due to its "enormous potential for good and enormous potential for harm."

Minerva’s blog focuses on the latest developments in ESG investing and stewardship. Minerva is a global provider of sustainable stewardship solutions with over 25 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data, enabling them to navigate the intricate landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.

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