Royal Dutch Shell PLC (LON:RDSB) has lost a landmark case brought forward by seven activist groups, including Greenpeace and Friends of the Earth Netherlands, to challenge its climate strategy.
The Dutch Court of The Hague ordered the FTSE 100 group to reduce CO2 emissions by 45% by the end of 2030 compared to 2019 levels.
READ: Big day for Big Oil as Shell to receive Court verdict on climate strategy, ExxonMobil and Chevron hold AGMs
The company, instead, had pledged to cut the emissions of the products it sells by 20% over the same time period, as well as setting a net-zero goal by 2050.
A Shell spokesperson told Proactive the firm expects to appeal Wednesday’s “disappointing court decision”.
Historic win & tears of joy. As Court orders Shell to reduce its CO2 emissions, the judge leaves no room for doubt: Shell is contributing to dangerous #ClimateChange & must stop its destructive behaviour now. #StopShell Congratulations @milieudefensie. pic.twitter.com/LV2Q6uSyqx
— Friends of the Earth (@FoEint) May 26, 2021
The case was filed in 2019 on behalf of more than 17,000 Dutch citizens on the basis that the oiler is threatening human rights by investing in fossil fuels.
Action Aid Netherlands, Both ENDS, Fossil Free Netherlands, Young Friends of The Earth Netherlands and the Wadden Sea Association were also co-plaintiffs.
“The CO2 emissions of the Shell group, its suppliers and customers are greater than those of many countries. This contributes to global warming, which leads to dangerous climate change and poses serious risks to human rights, such as the right to life and an undisturbed family life,” the Court said.
“This is a turning point in history. This case is unique because it is the first time a judge has ordered a large polluting company to comply with the Paris Climate Agreement. This ruling may also have major consequences for other big polluters,” said Roger Cox, lawyer for Friends of the Earth Netherlands.
Shares shed 0.5% to 1,307.73p before close.