Today, the Court of Appeal of The Hague overturned the District Court of The Hague’s 2021 ruling in the case brought against Shell plc by Milieudefensie, other NGOs and a group of private individuals.
In 2021, the District Court of The Hague ruled that Shell plc must reduce the worldwide aggregate net carbon emissions it reports across Scopes 1, 2 and 3 by net 45% by the end of 2030, compared with 2019 levels, with a “significant best efforts” obligation for Scopes 2 and 3, and a “results-based” obligation for Scope 1.
Shell’s appeal did not have the effect of suspending the District Court’s decision. Shell is investing $10-15 billion between 2023 and the end of 2025 in low-carbon energy solutions including charging for electric vehicles, biofuels, renewable power, hydrogen, and carbon capture and storage, making Shell a significant investor in the energy transition. Shell invested $5.6 billion in low-carbon solutions in 2023, which was 23% of our capital spending. By the end of 2023, Shell had achieved more than 60% of its target to reduce Scope 1 and 2 emissions from its operations by 50% by 2030, compared with 2016.
“We are pleased with the court’s decision, which we believe is the right one for the global energy transition, the Netherlands and our company,” said Shell plc Chief Executive Officer Wael Sawan.
“Our target to become a net-zero emissions energy business by 2050 remains at the heart of Shell’s strategy and is transforming our business. This includes continuing our work to halve emissions from our operations by 20301. We are making good progress in our strategy to deliver more value with less emissions.”
The past few years have highlighted the critical importance of secure and affordable energy for economies and people’s lives. At the same time, the world must meet growing demand for energy while tackling the urgent challenge of climate change. There has been significant progress in the transition to low-carbon energy where governments have introduced policies to encourage investment and drive changes in demand.
As Shell has stated previously, a court ruling would not reduce overall customer demand for products such as petrol and diesel for cars, or for gas to heat and power homes and businesses. It would do little to reduce emissions, as customers would take their business elsewhere. We believe that smart policies from governments, along with investment and action across all sectors, will drive the progress towards net-zero emissions that we all want to see.