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.
Many people shop online for everything from clothes to appliances. If they do not like the product, they simply return it. But there's an environmental cost to returns.
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EcoWatch Daily Newsletter
By Dolf Gielen and Morgan Bazilian
John Kerry helped bring the world into the Paris climate agreement and expanded America's reputation as a climate leader. That reputation is now in tatters, and President-elect Joe Biden is asking Kerry to rebuild it again – this time as U.S. climate envoy.
Energy Is at the Center of the Climate Challenge<p>The <a href="https://science2017.globalchange.gov/chapter/1/" target="_blank">effects of climate change</a> are already evident across the globe, from <a href="https://theconversation.com/100-degrees-in-siberia-5-ways-the-extreme-arctic-heat-wave-follows-a-disturbing-pattern-141442" target="_blank">extreme heat waves</a> to <a href="https://science2017.globalchange.gov/chapter/12/" target="_blank">sea level rise</a>. But while the challenge is daunting, there is hope. Solar and wind power have become the <a href="https://www.irena.org/publications/2020/Jun/Renewable-Power-Costs-in-2019" target="_blank">cheapest forms of power generation globally</a>, and technology progress and innovation continue apace to support a transition to clean energy.</p><p>In the U.S. under a Biden administration, long-term national climate legislation will depend on who controls the Senate, and that won't be clear until after two run-off elections in Georgia in January.</p><p>But there is no shortage of <a href="https://www.bloomberg.com/features/2020-biden-climate-change-advice/" target="_blank">ideas for ways Biden</a> could still take action even if his proposals are blocked in Congress. For example, he could use executive orders and direct government agencies to tighten regulations on greenhouse gas emissions; increase research and development in clean energy technologies; and empower states to exceed national standards, <a href="https://www.reuters.com/article/us-autos-emissions-california/defying-trump-california-locks-in-vehicle-emission-deals-with-major-automakers-idUSKCN25D2CH" target="_blank" rel="noopener noreferrer">as California did in the past with auto emission standards</a>. A focus on a just and equitable transition for communities and people affected by the decline of fossil fuels will also be key to creating a sustainable transition.</p><p>The U.S. position as the world's largest oil and gas producer and consumer creates political challenges for any administration. U.S. forays into European energy security are often treated with suspicion. Recently, France blocked <a href="https://www.wsj.com/articles/frances-engie-backs-out-of-u-s-lng-deal-11604435609" target="_blank">a multi-billion dollar contract</a> to buy U.S. liquefied natural gas because of concerns about limited emissions regulations in Texas.</p><p>Strengthening cooperation and partnerships with like-minded countries will be critical to bring about a transition to cleaner energy as well as sustainability in agriculture, forestry, water and other sectors of the global economy.</p>
Creating a Global Sustainable Transition<p>How the world recovers from COVID-19's economic damage could help drive a lasting shift in the global energy mix.</p><p>Nearly one-third of Europe's US$2 trillion economic relief package <a href="https://www.bloomberg.com/news/articles/2020-07-21/eu-approves-biggest-green-stimulus-in-history-with-572-billion-plan" target="_blank" rel="noopener noreferrer">involves investments that are also good for the climate</a>. The European Union is also strengthening its 2030 climate targets, though each country's energy and climate plans will be critical for successfully implementing them. The <a href="https://joebiden.com/clean-energy/" target="_blank" rel="noopener noreferrer">Biden plan</a> – including a $2 trillion commitment to developing sustainable energy and infrastructure – is aligned with a global energy transition, but its implementation is also uncertain.</p><p>Once Biden takes office, Kerry will be joining ongoing <a href="https://www.un.org/en/conferences/energy2021/about#:%7E:text=The%20overarching%20goal%20of%20the,2030%20Agenda%20for%20Sustainable%20Development.&text=Accelerate%20delivery%20of%20United%20Nations,related%20issues%20at%20all%20levels." target="_blank" rel="noopener noreferrer">high-level discussions on the energy transition</a> at the U.N. General Assembly and other gatherings of international leaders. With the U.S. no longer obstructing work on climate issues, the G-7 and G-20 have more potential for progress on energy and climate.</p><p>Lots of technical details still need to be worked out, including international trade frameworks and standards that can help countries lower greenhouse gas emissions enough to keep global warming in check. <a href="https://www.carbonpricingleadership.org/what" target="_blank" rel="noopener noreferrer">Carbon pricing</a> and <a href="https://www.csis.org/analysis/how-can-europe-get-carbon-border-adjustment-right" target="_blank" rel="noopener noreferrer">carbon border adjustment taxes</a>, which create incentive for companies to reduce emissions, may be part of it. A consistent and comprehensive set of national energy transition plans will also be needed.</p><p>The global shift to <a href="https://www.irena.org/publications/2019/Jan/A-New-World-The-Geopolitics-of-the-Energy-Transformation" target="_blank">clean energy will also have geopolitical implications for countries and regions</a>, and this will have a profound impact on wider international relations. Kerry, with his experience as secretary of state in the Obama administration, and Biden's plan to make the climate envoy position part of the National Security Council, may help mend these relations. In doing so, the U.S. may again join the wider community of countries willing to lead.</p>
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By Maria Caffrey
As we approach the holidays I, like most people, have been reflecting on everything 2020 has given us (or taken away) while starting to look ahead to 2021.
We Need More Than Listening<p>By now we have all become sadly accustomed to the current administration sidelining scientists, most prominently Dr. Anthony Fauci, because the facts they provide do not fit with the political rhetoric of the moment.</p><p>I have <a href="https://www.csldf.org/2019/08/22/csldf-helps-climate-scientist-maria-caffrey-fight-for-scientific-integrity/" target="_blank">my own history</a> of filing a scientific integrity complaint with the National Park Service (which falls under the Department of the Interior) after senior ranking employees attempted to censor one of my scientific reports. I know all too well the damage and pain that these actions cause, not just for the individual scientist, but also because these <a href="https://www.ucsusa.org/resources/attacks-on-science" target="_blank" rel="noopener noreferrer">attacks on science</a> over the last few years have undermined sound, evidence-based decision making.</p><p>President-elect Biden has repeatedly said that he will <a href="https://thehill.com/homenews/521638-trump-biden-will-listen-to-the-scientists-if-elected" target="_blank" rel="noopener noreferrer">listen to the scientists</a>. While this is certainly a welcome change, listening can only take us so far. This past week Lauren Kurtz from the <a href="https://www.csldf.org/" target="_blank" rel="noopener noreferrer">Climate Science Legal Defense Fund</a> and my colleague <a href="https://www.ucsusa.org/about/people/gretchen-goldman" target="_blank" rel="noopener noreferrer">Gretchen Goldman</a> published <a href="https://www.scientificamerican.com/article/ten-steps-that-can-restore-scientific-integrity-in-government/" target="_blank" rel="noopener noreferrer">an article</a> listing 10 actions the new administration should implement to show their commitment to strengthening government science:</p><ol><li>Clearly prohibit political interference and censorship.</li><li>Protect scientists' communication rights.</li><li>Acknowledge that attempts to violate scientific integrity, even if ultimately not fruitful, are still violations.</li><li>Protect federal scientists' right to provide information to Congress and other lawmakers.</li><li>Commit to incorporating the best science as part of agency decisions.</li><li>Elevate agency scientific integrity policies to have the full force of law.</li><li>Publicly release anonymized information about scientific integrity complaints and their resolutions at every agency.</li><li>Institute an intra-agency workforce, potentially under the White House <a href="https://www.ucsusa.org/sites/default/files/2020-09/strengthening-science-and-si-at-ostp.pdf" target="_blank" rel="noopener noreferrer">Office of Science and Technology Policy</a>, to coordinate scientific integrity efforts across agencies, foster discussion of policy improvements, and standardize criteria for policies across agencies.</li><li>Strengthen whistleblower protections.</li><li>Ensure that policies cover all actors who will be dealing with science.</li></ol>
Time for Action<p>I have spoken to many scientists, particularly federal scientists, who are eager to turn the page so they can hurry back to the work they had been doing before this administration, but I urge caution in assuming that things can be "normal" again.</p><p>Before Trump, I naively thought the scientific integrity policies established during the <a href="https://obamawhitehouse.archives.gov/blog/2016/12/19/scientific-integrity-policies-update" target="_blank">Obama administration</a> would be sufficient. I never imagined that any administration could so willfully ignore and attack expert advice and evidence that is intended to protect us and our public lands.</p><p>I have personally witnessed how hard our federal scientists work. They put in long hours with minimal pay (far less that what they could get if they worked in private industry) to pursue one simple goal: to make things better for the nation.</p><p>We need stronger scientific integrity policies to protect these people and their work. But more than that, we need stronger scientific integrity laws because they also benefit society.</p>
By Andrea Germanos
Environmental campaigners stressed the need for the incoming Biden White House to put in place permanent protections for Alaska's Bristol Bay after the Trump administration on Wednesday denied a permit for the proposed Pebble Mine that threatened "lasting harm to this phenomenally productive ecosystem" and death to the area's Indigenous culture.
<div id="da98c" class="rm-shortcode" data-rm-shortcode-id="478a197b7c59c92787c92bec92f1ac39"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1331662923710693376" data-partner="rebelmouse"><div style="margin:1em 0">Bristol Bay forever, Pebble mine never. #NoPebbleMine #SaveBristolBay https://t.co/CBQ9zuy8A5</div> — Save Bristol Bay (@Save Bristol Bay)<a href="https://twitter.com/SaveBristolBay/statuses/1331662923710693376">1606328156.0</a></blockquote></div>
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By Gwen Ranniger
In the midst of a pandemic, sales of cleaning products have skyrocketed, and many feel a need to clean more often. Knowing what to look for when purchasing cleaning supplies can help prevent unwanted and dangerous toxics from entering your home.