Shell agrees to set short-term caps on carbon emissions

LONDON (AP) — Energy giant Royal Dutch Shell has agreed to set short-term goals for reducing carbon emissions that will be linked to executive pay.

The decision was announced Monday after pressure from institutional investors, who said urgency was needed to fight climate change and protect the value of their holdings.

Shell says it will set the targets for rolling three- or five-year periods beginning in 2020. The move supplements Shell's long-term goals, which call for the company to reduce its carbon footprint by 20 percent by 2035 and 50 percent by 2050.

CEO Ben van Beurden says the targets were the result of "unprecedented collaboration" with investors and will help to ensure the company thrives as countries around the world cut emissions to comply with the 2015 Paris Agreement on climate change.