Climate Action

Shell scraps membership with US refining lobby over position on climate change

In a new review, Shell has announced its decision to no longer work with a US trade group over climate change policy.

  • 02 April 2019
  • Rachel Cooper

In a new review, Shell has announced its decision to no longer work with a US trade group over climate change policy.

The Industry Associations Climate Review assesses for the first time Shell’s alignment with 19 key industry associations on climate-related policy. The report also details new governance principles to improve how Shell manages its memberships of industry associations on climate-related topics.

Shell states that this review is a first step towards ‘greater transparency’ on the topic of climate change.

Shell Chief Executive Officer Ben van Beurden said: “Shell must remain at the forefront of the drive for greater corporate transparency. We will continue to be more open about what we do and why we do it. We want to help people better understand Shell’s performance, values and principles. These reports outline our approach and activities in the crucial areas of sustainability and our relationships with industry associations and governments.”

The review has revealed that Shell will no longer work with American Fuel & Petrochemical Manufacturers (AFPM) because of a difference in climate change policies, highlighting how AFPM and Shell do not align on a number of issues including; the Paris agreement, carbon pricing and government action.

“We must be prepared to openly voice our concerns where we find misalignment with an industry association on climate-related policy,” adds van Beurden. “In cases of material misalignment, we should also be prepared to walk away.”

However, campaigners say that, despite this being a good step for Shell, they remain aligned with other trade groups that are not as transparent about their goals for the environment.

The review also states that Shell aims to cut the Net Carbon Footprint of the energy products it sells, by around 20 per cent by 2035 and by around half by 2050.

In line with this ambition, and beginning in 2019, Shell has set an initial three-year target to reduce its Net Carbon Footprint by between 2% and 3% compared to 2016 with executive pay now linked to this target.

Read the review in full here