Shell Accused of ‘Orwellian Doublethink’ in Downplaying Climate Risks to Investors
Oil giant Shell is back in the firing line this week as it is accused of “Orwellian doublethink” in its attitude to climate change and of failing to adequately addressing the "carbon bubble" and its threat to the company’s profits and shareholders.
The carbon bubble concept is based on the idea that more than two-thirds of fossil fuels must be left in the ground to avoid dangerous climate change and how tighter emissions legislation and emerging clean technologies could result in stranded fossil fuels assets.
Earlier this year, Shell dismissed a report from the Carbon Tracker Initiative (CTI)—the NGO that pioneered the carbon bubble hypothesis—labeling the concept as “alarmist.”
The analysis, released in May, warned oil companies they are poised to water $1.1 trillion of investors’ money through to 2025 on expensive and uneconomic projects which will never see a return in the carbon constrained world.
This week, CTI hit back, accusing the company of failing to comprehensively explain the risks involved, and of misquoting parts of the Intergovernmental Panel on Climate Change’s latest report.
Anthony Hobley, CEO of CTI said:
With this combative stance, Shell has missed an opportunity to explain to its shareholders how its capital expenditure plans are resilient to the impending energy transition.
Acknowledging the seriousness of the climate challenge whilst at the same time asserting no effective action be taken until the end of the century is as classic a case of Orwellian doublethink as you are likely to find.
The organization points out that while acknowledging the need for urgent climate action, Shell’s reassurances to shareholders is based on the assumption that governments will fail to deliver such action.
CTI is accusing Shell of misrepresenting the latest warning from the IPCC, citing the reports claim that “there is a high degree of confidence that global warming will exceed two degrees Celsius by the end of the twenty-first century” but failing to put this into the context of other possible outcomes detailed in the reports series of scenarios.
In a detailed rebuttal of Shell’s argument, CTI said the company had selectively focused on its proven reserves, and failed to acknowledge its growing portfolio of unconventional deep-water projects, which involve higher capital costs, longer lead times and longer payback periods.
Over the next 10 year, the CTI says Shell could invest $77 billion in high cost, high-risk projects, which would need a $95 a barrel oil price to pay off. It is these projects, which are most at risk from becoming stranded, argue CTI.
But it appears that Shell is not the only fossil fuel company wilfully ignoring the risk of climate change to their operations.
An analysis from UK based Carbon Brief, identified a trend of companies acknowledging climate risk, while at the same time failing to acknowledge the threat that climate action could place on their business models.
Of 76 oil, gas and coal companies, only seven responding to the survey, of which six came from major oil companies on the Fortune 500 list.
BP, Shell, ExxonMobil, ConocoPhillips, Statoil and MOL all said climate change as real and that climate policy posed a risk to their business—to an extent—as well as agreeing that regulations to curb emissions should be more stringent over time. Yet no company asked saw climate action as a threat to their business in the coming decades.
Mounting Pressure Against Shell and Friends
CTI’s analysis is not the only source of pressure being placed on Shell this week. It comes as Greenpeace is mounting a growing campaign for toy manufacturer Lego to break ties with the oil major.
The group argues that Lego is contradicting its own efforts to be environmentally sustainable—investing in wind power and taking steps to reduce the impact of its plastic blocks—but continuing to advertising with Shell and allowing the companies branding on its toys.
A new video highlighting the campaign went viral this week, receiving more than 1 million views in just 24 hours.
It shows an Arctic scene made of Lego being destroyed by an oil spill—highlighting Shell’s continued pursuit of oil in the fragile environment.
By Stuart Braun
"These are not just wildfires, they are climate fires," Jay Inslee, Governor of Washington State, said as he stood amid the charred remains of the town of Malden west of Seattle earlier this month. "This is not an act of God," he added. "This has happened because we have changed the climate of the state of Washington in dramatic ways."
'These Aren't Wildfires'<p>Sam Ricketts, who led climate policy and strategy for Governor Jay Inslee's 2020 presidential campaign, tweeted on September 11 that "These aren't wildfires. These are #climatefires, driven by fossil fuel pollution."</p><p>"The rate and the strength and the devastation wrought by these disasters are fueled by climate change," Ricketts told DW of fires that have burnt well over 5 million acres across California, Oregon, Washington State, and into neighboring Idaho. </p><p>In a two-day period in early September, Ricketts notes that more of Washington State burned than in almost any entire fire season until now, apart from 2015. </p><p>California, meanwhile, was a tinderbox after its hottest summer on record, with temperatures in Death Valley reaching nearly 130 degrees Fahrenheit, according to the U.S. National Weather Service. It has been reported as the hottest temperature ever measured on Earth.</p>
<div id="29ad9" class="rm-shortcode" data-rm-shortcode-id="8346fe7350e1371d400097cd48bf45a2"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1306969603180879872" data-partner="rebelmouse"><div style="margin:1em 0">Drought-parched wetlands in South America have been burning for weeks. https://t.co/pjAKdFcKPg #Pantanal https://t.co/ImN2C5vwcp</div> — NASA Earth (@NASA Earth)<a href="https://twitter.com/NASAEarth/statuses/1306969603180879872">1600440810.0</a></blockquote></div><p>As evidenced by Australia's apocalyptic Black Summer of 2019-2020, fires are burning bigger and for longer, with new records set year-on-year. Right now, Brazil's vast and highly biodiverse Pantanal wetlands are suffering from catastrophic fires.</p>
#climatefires Started in Australia<p>Governor Inslee this month invoked the phrase climate fires for arguably the first time in the U.S., according to Ricketts.</p><p>But the term was also used as fires burnt out of control in Australia in late 2019. In the face of a 2000km (more than 1,200 miles) fire front, and government officials and media who <a href="https://www.dw.com/en/trump-climate-change-denial-emissions-environment-germany-fake-heartland-seibt/a-52688933" target="_blank">played down the link to climate change</a>, Greens Party Senator Sarah Hanson-Young and a friend decided that reference to bushfires was inadequate. </p><p>"We both just said, we've got to start calling them climate fires, that's what they are," the Australian Senator told DW.</p><p>Hanson-Young says scientists have been warning for decades that these would be the effects of global heating. "We've been told these kinds of extreme weather events and destruction is what climate change would look like, and it's right here on our doorstep," she said from her home state of South Australia — where by early September fire warnings had already been issued.</p><p>"Calling them climate fires was making it absolutely crystal clear. It is essential that there's no ambiguity," she said </p><p>Having deliberately invoked the term, Hanson-Young soon started to push it on social media via a #climatefires hashtag. </p>
How to Talk About the Urgency of Global Heating<p>The need to use more explicit language when talking about extreme weather events linked to climate change is part of a broader push to express the urgency of global heating. In 2019, activist Greta Thunberg tweeted that the term "climate change" did not reflect the seriousness of the situation. </p><p>"Can we all now please stop saying 'climate change' and instead call it what it is: climate breakdown, climate crisis, climate emergency, ecological breakdown, ecological crisis and ecological emergency?" she wrote. </p><p>"Climate change has for a long time been talked about as something that is a danger in the future," said Hansen-Young. "But the consequences are already here. When people hear the word crisis, they understand that something has to happen, that action has to be taken."</p><p><span></span>Some terms are now used in public policy, with state and national governments, and indeed the EU Parliament, declaring an official climate emergency in the last year. </p>
Words That Reflect the Science<p>But while the West Coast governors all fervently link the fires to an unfolding climate crisis, U.S. President Donald Trump continues to avoid any reference to climate. In a briefing about the fires, he responded to overtures by Wade Crowfoot, California's Natural Resources Secretary, to work with the states on the climate crisis by stating: "It'll start getting cooler. You just watch." Crowfoot replied by saying that scientists disagreed. Trump rejoined with "I don't think science knows, actually." </p><p>It was reminiscent of the anti-science approach to the coronavirus pandemic within the Trump administration, <a href="https://www.dw.com/en/donald-trump-admits-playing-down-coronavirus-risks/a-54874350" target="_blank" rel="noopener noreferrer">at least publicly</a>. Fossil fuel companies are also benefiting from his disavowal of climate science, with the Trump administration having <a href="https://www.dw.com/en/opinion-trumps-paris-climate-accord-exit-isnt-really-a-problem/a-51124958" target="_blank" rel="noopener noreferrer">pulled out of the Paris Agreement</a> and reopened fossil fuel infrastructure like the Keystone XL pipeline. </p><p>But the science community has responded, with Scientific American magazine endorsing Trump's Democratic presidential challenger Joe Biden, the first presidential endorsement in its 175-year history. </p><p>Hanson-Young says the use of explicit language like climate fires has also been important in Australia due to the climate denialism of politicians and the press, especially in publications owned by Rupert Murdoch. As fires burnt out much of Australia's southeast coast, they were commonly blamed on arson — a tactic also recently used in the U.S.</p>
Climate Rhetoric Could Help Decide Election<p>The language of climate has begun to influence the U.S. presidential election campaign, with Democratic nominee Joe Biden labelling President Trump a "climate arsonist."</p><p>Biden is touting a robust climate plan that includes a 2050 zero emissions target and a return to the Paris Agreement. Though lacking the ambition of The New Green Deal, it has been front and center of his policy platform in recent days, at a time when five hurricanes are battering the U.S. Gulf Coast while smoke blanketing the West Coast spreads all the way to the East. </p><p>People are experiencing the climate crisis in a visceral way and almost universally relate to the language of an emergency, says Ricketts. "They know something is wrong."</p>
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World's Richest One Percent Are Producing More Than Double the Carbon Emissions as the Bottom 50 Percent
A new report from Oxfam found that the wealthiest one percent of the world produced a carbon footprint that was more than double that of the bottom 50 percent of the world, The Guardian reported. The study examined 25 years of carbon dioxide emissions and wealth inequality from 1990 to 2015.
If you are taking medication for an underactive thyroid, check your prescription.
By Jessica Corbett
This story was originally published on Common Dreams on September 19, 2020.
Some advocates kicked off next week's Climate Week NYC early Saturday by repurposing the Metronome, a famous art installation in Union Square that used to display the time of day, as a massive "Climate Clock" in an effort to pressure governments worldwide to take swift, bold action to reduce greenhouse gas emissions and rein in human-caused global heating.
<div id="0bde7" class="rm-shortcode" data-rm-shortcode-id="002ce26d8d0c627f76d752e14d234d6e"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1307397838884741121" data-partner="rebelmouse"><div style="margin:1em 0">LIVE: #ClimateClock about to go live at Union square replacing the atronomical clock, with a carbon countdown!… https://t.co/5OzxwUwWDf</div> — Greg Schwedock🌹(⧖) (@Greg Schwedock🌹(⧖))<a href="https://twitter.com/GregSchwedock/statuses/1307397838884741121">1600542909.0</a></blockquote></div><p>A mobile climate clock that Swedish youth activist Greta Thunberg "now carries with her, as well as the larger Climate Clock project, was assembled by a team of artists, makers, scientists, and activists based in New York, and is part of the Beautiful Trouble community of projects," according to <a href="https://climateclock.world/" target="_blank">Climateclock.world</a>, which details the science behind the numbers displayed and how to install clocks in other cities.</p>
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The passing of U.S. Supreme Court Justice Ruth Bader Ginsburg means the nation's highest court has lost a staunch advocate for women's rights and civil rights. Ginsburg was a tireless worker, who continued to serve on the bench through multiple bouts of cancer. She also leaves behind a complicated environmental legacy, as Environment and Energy News (E&E News) reported.
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