Summarised by Centrist
Shell’s recent win in a Dutch appellate court overturned a landmark decision, challenging the company’s responsibility to cut emissions by 45% in line with the Paris climate accords.
The appeal court ruled that while Shell has a duty to contribute to reducing emissions, it does not have a defined “social standard of care” to achieve a specific reduction. A 2021 ruling had previously mandates Shell to align its operations with global climate policies.
This verdict marked a setback for environmental groups like Friends of the Earth, who had previously won the initial 2021 decision, as it marked the first time a private company had been ordered to meet international climate standards.
Friends of the Earth Netherlands argued that companies have an “unwritten duty of care” under Dutch law, implying an obligation to combat climate change for public welfare.
However, Shell countered that the ruling unfairly singled it out for a global issue, suggesting that climate change policies should be driven by government regulation rather than targeted court orders.
The appeals court acknowledged that Shell was taking steps to lower emissions, with aims to reduce carbon intensity by up to 20% by 2030 and achieve “net zero” by 2050.
