Shell puts pressure on trade groups over climate

Shell said today it plans to engage with 10 oil and gas industry associations over "misalignment" between their climate and energy transition-related positions and its own transition policies.

Shell said it would remain a member of these groups, which are mainly located in the US, Australia and Canada, but would encourage them to adopt "policies that support the goal of the Paris Agreement and help society to achieve net-zero emissions by 2050."

In Shell's first Climate and Energy Transition Lobbying Report, chief executive Wael Sawan said he was "encouraged" to see that around three-quarters of the 39 associations reviewed are aligned with the company's policy positions on climate and the transition. But he said he wanted to see more change at these associations.

"I am writing to the 10 industry associations where we have found some misalignment to call for changes to some of their positions," Sawan said "For example, we would like some associations to step up their advocacy in support of net zero by 2050 and reductions in methane emissions. We look forward to engaging with them in the months ahead."

Shell said it would continue to track alignment between the associations' climate and energy transition-related positions and its own, and that it will be "transparent about where we find differences". But while it plans to remain a member of these industry associations, it also said it will reassess its membership "where we identify material misalignment", including ending activities such as board and committee participation, or ending overall membership.

The American Petroleum Association (API) was one trade body where Shell has found some misalignment. The company said it will "urge" the API to state its support for net-zero emissions by 2050 and "engage in sustain and constructive advocacy in support of the US target to achieve net-zero emissions by 2050" and state its support for ending routine flaring by 2030 or sooner.

In January 2021, France's TotalEnergies quit the API citing its own policy disagreements with the organisation.

By Jon Mainwaring