Shell's directors will now be paid bonuses based on how the firm manages greenhouse gas emissions

 
Courtney Goldsmith
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It's no coincidence that Shell just flogged one of its most carbon heavy assets (Source: Getty)

Shell has announced changes to its remuneration strategy, which include basing a portion of directors' bonuses on how well the oil major manages greenhouse gas emissions.

Shell outlined the new direction at its capital markets day and they took effect from the start of the year.

New metrics for greenhouse gas management now form 10 per cent of the annual bonus scorecard, which is calculated according to Shell's management of carbon dioxide emissions from its refining, chemical and upstream assets.

The changes also include a new emphasis on free cash flow, which has replaced earnings per share as a measure for Shell's long-term incentive plan as it targets divestments following its $54bn acquisition of BG Group.

Shell also today revealed its boss Ben van Beurden received a total pay package increase of 60 per cent to €8.263m in 2016 due to deferred bonuses and long-term incentive plans.

In a separate statement, the Anglo-Dutch oil major agreed to sell most of its Canadian oil sands assets for $8.5bn (£7bn). These projects are costly and among the most carbon heavy.

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