Shell Consciously Uncouples
That’s what happens when you can’t agree on climate change policy
• less than 3 min read
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.
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