Shell’s green plans under scrutiny as Nigeria’s oil “incompatible” with climate strategy
Royal Dutch Shell Plc has been under increasing pressure from investors to slash emissions and pivot toward cleaner energy, and the tension was on show at its shareholder meeting on Tuesday.The company’s long-term energy transition plan, laid out to investors for the first time, received overwhelming support, but a competing resolution asking for stricter targets also garnered more votes than ever. Adding to the tension, shareholders were meeting as the International Energy Agency warned that all new oil and gas developments need to stop immediately for climate targets to be met.Shell also acknowledged its green strategy is complicated by its spill-prone operations in Nigeria, where it has been pumping out oil for half a century.The Anglo-Dutch company has been gradually selling onshore assets in the West African country for more than a decade, as it sought to put aside chronic problems such as pollution caused by ruptured pipelines and the resulting legal battles with local communities.The issue has become more acute in the past year after Shell pledged to transform itself into a clean energy giant and gradually wind down its oil and gas business to achieve net-zero carbon emissions by 2050. Adding to the pressure, the International Energy Agency warned Tuesday that new oil and gas field developments globally need to stop immediately for climate targets to be met.“The balance of risks and rewards associated with our onshore portfolio is no longer compatible with our strategic ambitions,” Chief Executive Officer Ben van Beurden told investors. “We cannot solve community problems in the Niger Delta” and the company has started discussions with the government on how to move forward, he said.
Source: Further Africa