MINORITY SHELL SHAREHOLDERS SUE SHELL OVER OBSESSION WITH FOSSIL FUELS
Trying to keep up with news about fossil fuels companies these days is hard to do. Making sense of their record profits the lasts year alone is a major challenge. Deciphering how much each company is greenwashing with their advertising is almost impossible, though it’s obviously a lot. And despite those challenging efforts, how can we influence these companies to position themselves for the future? You know, when fossil fuels are no longer the bread and butter for fossil fuels companies? The answer when it comes to Shell is: sue them. And that’s exactly what shareholders in the UK just did, because their company is too obsessed with fossil fuels.
SHAREHOLDERS ALLEGE THAT SHELL BOARD ISN’T POSITIONING FOR PROFITABLE GREEN FUTURE
All of these oil companies say they are working on diversifying in order to better prepare for a world that is powered more by green energy than black gold. It’s inevitable, as oil reserves continue to shrink. And sources of more like tar sands or the reserves in the far north under melting ice will only cook our planet even more. Shell shareholders know climate change is real, and it’s obviously already here. But companies like Shell seem to say they are doing all they can to position themselves for a profitable future that doesn’t continue to wreck the planet. But it’s impossible to keep them at their word.
SHAREHOLDERS SUIT COMES FROM CLIENTEARTH, A UK-BASED ENVIRONMENTAL LAW FIRM
The shareholders suing Shell are from the UK-based environmental law firm, ClientEarth. Their suit is aimed squarely at Shell’s 11-member board, alleging that Shell isn’t properly managing the business risks associated with climate change. This alleged mismanagement puts Shell shareholders like them at risk, as it sets Shell up for failure as its access to oil duns dry. This shareholder lawsuit is the first of its kind. But you can be sure there are many avid spectators watching to see where it goes. Shell doubled its profits from 2021 to 2022 to $40 billion, and is also spending $100 million a day on fossil fuel projects right now.
It sounds like there’s grounds for the lawsuit, eh?