Want to save the planet? Buy shares in Shell!

(Then you can tell THEM how to behave)

FROM flying less, to cutting down on plastic, many of us are trying to live a more eco-friendly lifestyle. And, when it comes to green investment, most people assume they must back funds and firms that have robust ethical credentials.

However, there is a growing movement where savers who want to combat climate change invest a small amount of money in the very companies ecoactivists traditionally rail against, such as fossil fuel giants Shell and BP.

It might sound counter-intuitive, but the idea is that, as shareholders, you can then pressure the firms to adopt greener practices. Experts say that this gives you more power than simply abandoning the companies altogether — as the National Trust recently pledged to do.

In 2017, for example, investors persuaded Shell to pledge to reduce its carbon footprint and invest in green projects.

Firms such as Legal & General Investment Management (LGIM) and investor alliance Climate Action 100+ have long been supporters of this approach. As large shareholder groups, they regularly use the power of their holdings to arrange votes in favour of climate-friendly policies at annual meetings.

Sacha Sadan, LGIM director of corporate governance, says: ‘You have to be in the tent to influence these companies.

‘We decided a long time ago not to sit on the fence.’

But you don’t need to be part of a big shareholder group with trillions of pounds worth of assets to make a difference — ordinary savers with a handful of shares can help, too.

You can buy shares through an AJ Bell Youinvest account online for £9.95, for example, with ongoing fees of up to £7.50 a quarter.

You need to purchase only one share in the company you want to target. A share in Shell currently costs £23.98 and BP £5.07.

Before you buy, check that you don’t already own shares without

realising it. Most major pension funds hold shares in these types of firms, viewing them as a relatively safe investment because they are so large.

Once you are a shareholder, you should be sent the firm’s annual report and other information for investors, which can also be found on its website.

You will also have the right to attend annual general meetings (AGMs) and vote on company policies. Ask your broker to alert you to upcoming votes.

Most AGMs offer the opportunity for shareholders to meet executives afterwards — a good way to engage with bosses one on one.

However, if you want to attend, you need to buy shares well in advance of the meeting, as some firms impose restrictions on how long you must have held them. Bear in mind that meetings can be held all over the world. Shell’s last annual meeting was held in The Hague, in the Netherlands, while BP’s was in Aberdeen on the same day.

YOu can also contact for help organisations that specialise in this type of engagement. For example, ShareAction sends out activist packs explaining how to lobby a business from within and what to ask at AGMs.

If you want to propose a new company policy at an AGM, you need members representing at least 5 pc of the total voting rights (which is a lot for firms on the

scale of BP and Shell), or at least 100 shareholders who all hold a minimum of £100 worth of shares.

If you do not have much spare time, there are organisations that co-ordinate campaign work on behalf of investors.

Follow This was founded in 2015 and now represents more than 4,800 green shareholders in oil and gas companies with shares worth around £20 million.

The firm began by focusing on Royal Dutch Shell, which is listed in the Netherlands and the uK, and has expanded to target BP and Norwegian oil major Equinor.

You can buy one share in Shell through Follow This on its website for €31 (around £29) — this fee is expected soon to also cover a stake in BP and Equinor.

You can then choose whether you want to receive a dividend or if you want to donate the money to Follow This.

If you are already a Shell investor, then you can pay a one-off fee of €5 (£4.50) for Follow This to represent your holding.

Mark van Baal, the founder of Follow This and a former energy journalist, says: ‘These companies don’t listen to governments — they need shareholder support to change course.’

You can also be an activist investor in other sectors, such as mining.

The likes of ShareAction also fight for other changes, including fair wages and diversity.

Even helping to push through just one small positive change could make all the difference.