Last week, the company achieved an important judicial victory in the Dutch appeals court when it overturned a ruling passed in 2021 that required the firm to reduce its carbon emissions by 45%. A decision filed by Friends of the Earth and thousands of Dutch citizens led to the overturning as they aimed at compelling Shell to bring its operations in line with what is contained within the Paris Climate Agreement.
However, the appeals court ruled that while Shell does indeed have a general responsibility to deal with emissions, there is no legal precedent that allows imposition of a specific percentage of reduction.
The verdict has been met with strong criticism from the environmental group Friends of the Earth Netherlands. In its current state, the case will reach the Dutch Supreme Court after years. According to comments made by the group director Donald Pols, this is ‘a long-term struggle for environmental accountability’.
Shell argued that climate responsibility efforts should not all be internalized in one firm and pointed to its own efforts to reduce emissions intensity by 15-20% by 2030 and achieve net-zero by 2050. The company argues that systemic policy shifts are what should be impressed upon governments and not corporations.
Although the court acknowledged that Shell had been doing several things to promote a healthy environment, it said it could not impose a 45% reduction because there is no scientific consensus on exactly how much is needed.
Results of this case are seen to have major implications since environmental organizations worldwide currently use legal systems to remind corporations and governments to meet climate commitments.
