Royal Dutch Shell announced plans on Tuesday to leave an American refining lobby over climate policy positions. Although it is the first for an oil and gas company, it is also a sign of increased climate responsibility among businesses and investors.
Shell released its Climate Review Industry Association on Tuesday, announcing that the company has "developed a new set of principles to govern the way we handle our relationships with industry associations on climate-related policy issues."
By reviewing its current affiliation To 19 industry groups, Shell found a "some mismatch" with nine of them. But first and foremost, the company found "material misalignment" with a particular industry group ̵
Shell provides a number of reasons for leaving AFPm, including AFPm's lack of explicit support for the goal of the Paris Agreement. The review simply says, "Shell supports the goal of the Paris Agreement." Shell said other factors led to the decision being included:
- AFPM's lack of carbon pricing support.
- AFPm is opposition from the government's action to shape political frameworks for CO2 technologies.
- AFPm supports EPA's proposed recall of US fuel economy standards.
- AFPm's lack of position on the role of natural gas and reduction of methane emissions.
Shell's review includes a message from CEO Ben van Beurden, in which he writes:
"The need for urgent action due to climate change has become increasingly evident since the signing of the Paris Agreement in 2015. This area has changed and Shell's views have also evolved.
We need to be prepared to open up our concerns where we find mismatches with an industry association on climate-related policies. In the case of material misalignment, we should also be prepared to go away . "
Although Shell is the first major oil and gas company to survey this path, investors have already begun to move away from oil and gas.
Norway's $ 1 billion sovereign securities fund made the last decision to dispose of some of its oil and gas stocks. Bloomberg notes that while the country's government pension fund is "investing in the major integrated oil companies, it said it is because of their early commitment to renewable energy."
Businesses that "exist only to find more oil" are not so lucky – that's how much of Norway's alienation is directed.
A group of Dutch investors were not so picky. The group of 22 wealthy individuals recently decided to withdraw all their money from the fossil fuel industry, representing a sale of around 200 million euros.
And Reuters reports that a group of sovereign securities funds from oil-rich Middle East countries appear to "diversify into renewable energy, the pressures of regulators and promises of climate change." These funds are not looking to dispose of in oil and gas – Not a surprise, but it is a sign of time, even though it is a pressure on renewable energy.
We have also put pressure on public services from powerful US pension funds that have a strong pressure on carbonization, and knowledge of these plans.
Companies obviously take note of the shift. Corporations put in a clean energy purchase record last year, and hundreds of US companies joined the recent launch of the Renewable Energy Buyers Alliance.
While Dutch Dutch Shell's announcements are another indication of a growing worldwide shift in climate, even among oil companies, Shell and its ilk cannot benefit the doubt. According to a recent report, Shell was one of a number of oil and gas giants found to spend a total of $ 1 billion on climate bullying that was "overwhelmingly in conflict" with the Paris agreement.
Will it change? And what will Shell actually do in the future? That's the important part. The company recently moved 700,000 U.K. housing for renewable energy. We need more of it.
The bottom line is important, and the diminishing price of renewable energy makes its mark. When combined with widespread public support for green energy policies and growing climate change, there are conditions for change. It can't be a perfect storm yet, but you can see the clouds.
We need solutions on several fronts and from different angles. If companies move in this direction, while governments adopt policies that set concrete, quantifiable targets against reducing carbon emissions and further decisions on renewable energy and electric vehicles, we could see some real progress.