Environmental lawyers ClientEarth are suing oil giant Shell’s board of directors over their climate strategy. They claim that the company is failing to reduce its emissions to ensure that they meet global climate goals, and that they are failing to make the shift from fossil fuels.
Legally, Shell needs to tackle risks that could pose a threat to the future of the company. ClientEarth believes that as the rest of the world moves away from fossil fuels and tries to clean up its energy, the company’s projects and investments will become unprofitable.
“That puts the company’s long-term commercial viability at risk, and also threatens efforts to protect the planet, further increasing the risk to the company.” ClientEarth’s news release reads. They further explained that Shell’s “flawed climate plans” will put the company’s value, its employees’ jobs and its shareholders’ and investors’ money at risk. This failure to properly deal with climate risk is allegedly a breach of their legal duties under the UK Companies Act.
Just two weeks ago, Shell found itself in the midst of another lawsuit. Almost 14,000 people from the Niger delta took the company to court for the pollution it has caused. Members of the farming community of Ogale and the fishing community of Bille are demanding that the oil giant clean up the damage they have created. Due to devastating pollution and repeated oil spills, these communities have been robbed of their livelihoods. However, after generating massive profits 60 years, Shell will now sell their oilfields and assets in the Niger delta. But the Nigerian people and many environmental activist groups believe they must clean up their mess first.
The fossil fuel giant has received criticism for the pollution it has caused. As per ClientEarth’s recent claims, Shell’s approach will continue to be harmful to the environment and its own people in the years to come.