Royal Dutch Shell ordered to reduce CO2 emissions

Royal Dutch Shell must reduce CO₂ emissions of the Shell group, its suppliers, and customers through group policy by end 2030 to 45% net compared to the 2019 level, the district court of The Hague ordered on the 26^th May.

This warrant was issued in proceedings brought by seven foundations and associations and more than 17,000 individual plaintiffs. According to the plaintiffs, RDS, as the policy-making head of the Shell group, is not doing enough, is acting unlawfully, and must do more to reduce CO₂ emissions.

“The Shell group is one of the largest producers and suppliers of fossil fuels worldwide. The CO₂ emissions of the Shell group, its suppliers and customers are greater than those of many countries. This contributes to global warming, which leads to dangerous climate change and poses serious risks to human rights,” the court said, noting that it is generally accepted that companies must respect human rights.

RDS has an obligation with regard to Shell group CO₂ emissions and a best-efforts obligation in terms of CO₂ emissions of suppliers and customers, which means that RDS must exert its influence through policy, one example being purchasing policy.

The court said RDS has freedom to fulfil the reduction obligation as it sees fit, noting that RDS has not been found to be currently in breach of this obligation, as claimants argue. However, while RDS has tightened up its policy and is in the process of development, the policy is not concrete, “has many reservations, and is based on following social developments instead of a personal responsibility to ensure CO₂ reduction,” the court said.

Therefore, the court ruled that there is an imminent violation of the reduction obligation and granted the order.

Shell has noted its intent to become a net-zero emissions energy business by 2050, in step with society’s progress in achieving the goal of the UN Paris Agreement on climate change.

Source: Oil & Gas Journal