“With this review, Shell has established best practices in corporate climate lobbying, not only in oil and gas, but in all sectors. The challenge now is for others to follow suit. The revision is part of Shell`s efforts to increase transparency and show investors that it is in line with the 2015 Paris climate agreement to limit global warming to net zero by reducing carbon emissions by the end of the century. Continued oil and gas production does not prevent the UK from becoming “net zero carbon” by 2050, as the rate at which UK oil and gas production is expected to decline in the coming decades, in line with the reduction needed to meet the UK`s climate change targets. Two years after internal documents emerged showing that Royal Dutch Shell, like ExxonMobil, was aware of climate risks decades ago, the oil giant released its latest annual report outlining its trade strategy and approach to climate change. Despite clear warnings from scientists, global health experts and even central banks against the threat of climate crises, Shell`s report sends a broad message that all is well and that “the company`s business strategy is sound.” It is also the latest sign of how investor pressure on oil companies is driving changes in their climate behaviour. Shell released its own report in 2019, which shell updated this year as part of what CEO Ben van Beurden called “the first step towards greater transparency in our activities with interprofessional climate change organizations.” But the evaluations covered only a small part of their membership. If we are to achieve the Paris climate targets, we must quickly stop oil and gas drilling. Most known oil and gas reserves must remain flammable below the surface. At the time, Shell was not really in advance with its own shareholders about the potential risks that climate change posed to its business.
The first time Shell mentioned climate change was in a 1991 annual report. But it was not until 2004, in its annual report, that Shell clearly warned of the financial risks associated with investing in fossil fuels. Norwegian oil group Equinor, another member of the Australian Petroleum Production And Exploration Association, also criticized the shortfall and said in a review of its own lobby groups that the use of Kyoto credits could reduce the ambitions of the Paris climate agreement. Our lives depend on energy wherever we live. But in order to thrive in the fight against climate change, society must provide much more energy to a growing world population, while finding ways to emit much less CO2. Shortly after taking the helm of bp CEO Bernard Looney in February, he began auditing the lobbying of the company`s business groups. He called the efforts “small but important not in restoring confidence in BP.” He promised a new era of climate change, in which the company, renamed “Beyond Petroleum” a decade earlier, would eliminate its carbon footprint and direct its powerful lobbying machine to “Representation of Interests for a Policy That Supports The Zero Network.” More than 20 years ago, Shell did consider climate-related prosecutions a possibility.