The environmental law organisation ClientEarth starts legal action against Shell for failing to prepare for net zero.
ClientEarth claims the Board failed to adopt and devise a strategy that is in line with the Paris Agreement. If this becomes successful, the courts could force Shell’s board to change its strategy and to take up specifics steps in order to to align its plan with the Paris deal.
Shell is seriously exposed to the risks of climate change, yet its climate plan is fundamentally flawed
…said ClientEarth lawyer, Paul Benson. and continued: ‘In failing to properly prepare the company for the net-zero transition, Shell’s Board is increasing the company’s vulnerability to climate risk, putting the long-term value of the company in jeopardy.’
ClientEarth says it is pursuing shareholder litigation to ‘compel Shell’s Board to act in the best long-term interests of the company’’.
Additionally, the organisation says the present-day strategy and ‘insufficient’ targets are putting the success of the company and employees’ jobs at risk.
Shell’s shareholders need certainty that the company is using their capital effectively in its navigation of the global energy transition and is genuinely pursuing the climate goals that it says it is
…said Benson.
To be a net-zero emissions business by 2050, we are delivering on our global strategy that supports the Paris agreement. This includes the industry-leading target we have set to halve emissions from our global operations by 2030, and transforming our business to provide more low-carbon energy for customers
…a Shell spokesperson said and he continued saying that “Addressing a challenge as big as climate change requires action from all quarters. The energy supply challenges we are seeing underscore the need for effective, government-led, policies to address critical needs such as energy security while decarbonising our energy system. These challenges cannot be solved by litigation.”
