Shell has Admitted Climate Change Could Affect the Company's Bottom Line

authordefault
on

Shell has finally admitted climate change could dramatically impact the companyโ€™s bottom line โ€” andย soon.

The companyโ€™s annual report 2018 acknowledges the impact of divestment campaign for the first time and ย should be seen as a clear warning to investors that the age of fossil fuels is coming to an end, according to campaigners with 350.org.

The report – just out – identifies divestment and climate litigation as material risks to the companyโ€™s profits. Itย says:

โ€œRising climate change concerns have led and could lead to additional legal and/or regulatory measures which could result in project delays or cancellations, a decrease in demand for fossil fuels, potential litigation and additional complianceย obligations.โ€

The report specifically identifies fossil fuel divestment campaign as a material risk. โ€œAdditionally, some groups are pressuring certain investors to divest their investments in fossil fuel companies. If this were to continue, it could have a material adverse effect on the price of our securities and our ability to access equity capitalย markets.โ€

It also highlights the risk of climate litigation efforts. โ€œFurther, in some countries, governments and regulators have filed lawsuits seeking to hold fossil fuel companies liable for costs associated with climate change. While we believe these lawsuits to be without merit, losing any of these lawsuits could have a material adverse effect on our earnings, cash flows and financialย condition.โ€

As we reported last week, Shell are facing a credibility crisis and resorting to more and more far-fetched attempts to maintain a public increasingly aware of the disastrous climate consequences of their business model. They now face corruption charges in Italy, as well as confronting the emerging revelations that they knew about the impact of its products forty yearsย ago.

Now divestment is emerging as perhaps the key tool in the campaigners toolbox to affectย change.

May Boeve, Executive Director of 350.org issued the followingย statement:

โ€œThis is a clear sign the fossil fuel divestment movement is winning and the age of fossil fuels is coming to an end. Take it straight from Shell: the time to get out of fossil fuels isย now.โ€

โ€œProtests, divestment, litigation, and regulatory efforts will only increase over the coming years, putting Shell and fossil fuel companies on ever more precarious footing. Just this month the American Medical Association divested from fossil fuels and the Pope said we must keep coal, oil and gas in the ground โ€” this movement isnโ€™t goingย away.โ€

She continued: โ€œShell should be particularly worried about climate litigation since investigations show that Shell, like Exxon, knew about the risks of climate change years ago and lied to the public about it. Just like Big Tobacco, Big Oil perpetrated a cover up of epic proportions and must be heldย accountable.โ€

โ€œWeโ€™ve long said that the fossil fuel industryโ€™s business plan is incompatible with a safe climate. That logic finally seems to be sinking in. Itโ€™s time to phase out the fossil fuel industry and build a new, just and equitable, 100% renewable energy world forย all.โ€

While there are multiple legal and cultural pressures on Shell, it looks like economic forces may ultimately force Big Oil to change itsย ways.

Image credit: via Wikimedia Commonsย CCย 2.0

authordefault
Admin's short bio, lorem ipsum dolor sit amet consectetur adipisicing elit. Voluptate maxime officiis sed aliquam! Lorem ipsum dolor sit amet consectetur adipisicing elit.

Related Posts

Analysis
on

More than 50 high-level Trump administration officials have links to groups behind the Heritage Foundation-backed plan, a DeSmog analysis found.

More than 50 high-level Trump administration officials have links to groups behind the Heritage Foundation-backed plan, a DeSmog analysis found.
Series: MAGA
Analysis
on

The billionaire rescued the right-wing plan to dismantle the government while at its most toxic moment. Enacting its vision at DOGE, Musk was Trumpโ€™s enabler and fall guy.

The billionaire rescued the right-wing plan to dismantle the government while at its most toxic moment. Enacting its vision at DOGE, Musk was Trumpโ€™s enabler and fall guy.
Series: MAGA
on

Nigel Farageโ€™s โ€œeconomically illiterateโ€ climate policies could wipe ยฃ92 billion off the UK economy, according to the New Economics Foundation.

Nigel Farageโ€™s โ€œeconomically illiterateโ€ climate policies could wipe ยฃ92 billion off the UK economy, according to the New Economics Foundation.
Analysis
on

Do oil sands companies actually want to capture carbon? Canadaโ€™s new energy minister, who served on MEGโ€™s board, has received mixed messages.

Do oil sands companies actually want to capture carbon? Canadaโ€™s new energy minister, who served on MEGโ€™s board, has received mixed messages.