Shell Consciously Uncouples

Royal Dutch Shell (+0.36%) is breaking it off with the American Fuel and Petrochemical Manufacturers (AFPM) group, because...that’s what happens when you can’t agree on climate change policy.

The oil giant cited a “material misalignment” with the leading refining lobby, which roughly translates to “we think it’s kind of shady you haven’t publicly supported the Paris Agreement.”

• Shell has been a proponent of the 2015 accord, whose aim to limit global warming is supported by almost every country in the world (but notably not the U.S.).
• It also took issue with AFPM’s stance on carbon pricing, fuel mandates, and methane emissions reduction.

Zoom out: Like any company that gets the bulk of its top line from fossil fuels, Shell has a complicated relationship with climate activism. It agreed last year to link executive pay to emission reduction targets starting next year, which was a first for the industry. But...Shell’s also facing an activist-backed lawsuit demanding it give up on the oil biz entirely.