Shell

InfluenceMap Score
for Climate Policy Engagement
C
Performance Band
67%
Organization Score
54%
Relationship Score
Sector:
Energy
Head​quarters:
London, United Kingdom
Brands and Associated Companies:
Shell Energy, Shell V-Power, Raízen, Greenlots
Official Web Site:
Wikipedia:

Climate Lobbying Overview: Shell appears to be highly engaged on climate change policies, showing top-line support for emission reduction targets, carbon pricing and for the decarbonization of transport. However, it continues to lobby for policies to advance fossil fuel production and consumption, particularly fossil gas. It also retains membership of industry associations who lobby negatively against climate change policies.

Top-line Messaging on Climate Policy: Shell appears to fully support climate action through its top-line messaging on climate policy. In its 2022 Sustainability and Lobbying Reports, published in March 2023, the company stated support for GHG emissions reductions in line with the 1.5°C target, the Paris Agreement as well as supporting policies designed to achieve this aim, with also broad support for carbon pricing policies.

Engagement with Climate-Related Regulations: Shell appears to have overall mixed engagement with climate-related regulations. In July 2022, Shell released an updated position paper on the EU’s ‘Fit for 55 package’ (FF55), in which it appeared to support the EU Emissions Trading Scheme (ETS) reforms. Shell also supported including the refining and chemical sectors in the Carbon Border Adjustment Mechanism (CBAM), but while only gradually phasing out free allowances in the ETS.

Shell’s engagement with renewable energy legislation also appears to be mixed. In its 2022 Sustainability Report, published in March 2023, Shell stated that it supported binding targets for renewable hydrogen in the EU’s Renewable Energy Directive (RED) as well as for renewable energy tax credits in the Inflation Reduction Act in the US. However, it also appeared to support the inclusion of ‘low-carbon’ fuel sources to be included in the RED, which leaves scope for fossil fuels to be included within the policy.

On the need for greenhouse gas emissions regulation, Shell’s position appears to be mixed. In February 2022, Shell Canada, President, Susannah Pierce, testified against a proposed cap on emission in Canada in testimony to the Standing Committee on Natural Resources. Nevertheless, in the US, Shell appeared to support the proposed methane rule in its February 2023 consultation response.

Shell appears to be supportive of policies that aim to decarbonize transport. Shell supported ambitious CO2 performance standards in Australia to help advance the economic case for electric vehicles, as well as the EU’s 2035 ICE ban target. In a comment to the UK government in September 2021, Shell stated that it fully supported the proposed mandate for sustainable aviation fuels and also appeared to support taxation of aviation fuels based on CO2 emissions

Positioning on Energy Transition: Shell appears to support a long-term role for fossil fuels in its global advocacy. In the company’s 2022 Sustainability Report, published March 2023, it stated support new LNG supply in the EU and advocated for the approval of backlogged fossil fuel permits in the US and the development of North Sea fossil fuels in the UK. In July 2022, Shell UK Country Chair, David Bunch testified at an Environmental Audit Committee inquiry in which he stated the priority was to ‘accelerate production of renewables’, but argued for the ‘clear requirement in a net-zero pathway, for oil and gas’. In the US, in April 2022, Shell President Gretchen Watkins testified before the Subcommittee on Oversight and Investigations, Committee on Energy and Commerce, in which she advocated for the energy transition to be accelerated, but also advocated for the advancement of US LNG export permits and an end to the pause on federal oil and gas leasing, especially in the Gulf of Mexico.

Industry Association Governance: Shell appears to be fairly transparent over its indirect influence through industry associations. In 2023, Shell published its most recent ‘Climate and Energy Transition Lobbying Report 2022’ that found no material misalignment with any of the 39 associations included in the assessment. Shell identified some misalignment with ten groups that traditionally lobby negatively on climate policies, including the American Petroleum Institute, Australian Petroleum Production and Exploration Association the Chamber of Minerals and Energy West Australia, the National Association of Manufacturers and the US Chamber of Commerce but stated that it will retain these memberships. However, in April 2022, Shell provided an update to its 2021 review, in which it confirmed it remained a member to all of the above associations.

A detailed assessment of the company's corporate review on climate policy engagement can be found on InfluenceMap's CA100+ Investor Hub here.

InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q2 2023.

QUERIES
DATA SOURCES
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11NA111NS
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1NS-21-2NSNS
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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
83%
 
83%
 
50%
 
50%
 
59%
 
59%
 
60%
 
60%
 
61%
 
61%
 
57%
 
57%
 
87%
 
87%
 
46%
 
46%
 
90%
 
90%
 
49%
 
49%
 
59%
 
59%
 
42%
 
42%
 
72%
 
72%
 
92%
 
92%
 
28%
 
28%
 
31%
 
31%
 
54%
 
54%
 
23%
 
23%
 
44%
 
44%
 
58%
 
58%
 
52%
 
52%
 
78%
 
78%
 
66%
 
66%
 
41%
 
41%
 
52%
 
52%
 
39%
 
39%
 
34%
 
34%
 
41%
 
41%
 
59%
 
59%
 
73%
 
73%
 
63%
 
63%
 
31%
 
31%
 
66%
 
66%
 
67%
 
67%
 
63%
 
63%
 
69%
 
69%
 
35%
 
35%
 
79%
 
79%
 
50%
 
50%
 
46%
 
46%
 
62%
 
62%
 
43%
 
43%
 
58%
 
58%
 
26%
 
26%
 
43%
 
43%
 
38%
 
38%
 
68%
 
68%
 
65%
 
65%
 
48%
 
48%
 
94%
 
94%
 
25%
 
25%
 
51%
 
51%
 
40%
 
40%
 
44%
 
44%
 
50%
 
50%
 
24%
 
24%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.