3 big oil companies have suffered a “cataclysmic day”. It involves investors rebelling because of climate fears. As a result, a court order has mandated that carbon emissions from fossil fuels have to be decreased. This has given hope to academics, lawyers, investors, and campaigners as they hail it as a major turning point for climate crisis efforts.
A Netherlands court had ordered Shell to reduce their gas and oil carbon emissions by almost half by the end of the decade. A small group of activist investors won 2 places on the board of ExxonMobil at the same time. The management of Chevron was also defeated as investors voted to force the group into cutting its carbon emissions.
Chevron is the second-largest emitter of carbon emissions among firms dealing with fossil fuels. ExxonMobil comes in third place while Shell is sixth.
The Significance Of The Carbon Emission Litigation
Bill McKibben, a climate author, and campaigner said that it might have been the biggest cataclysmic day for the industry of fossil fuels. But keeping the temperature low enough for the survival of civilization means staying away from oil, gas, and coal. This was unthinkable ten years ago, but now it is almost the law.
Sara Shaw, from Friends of the Earth International, added that it is one of climate justice’s landmark victories. They hope that this verdict will bring about a climate litigation wave against large polluters. Greenpeace Netherlands’ Andy Palmen called it a verdict that will be remembered in history. This will give legal power for the accountability of MNCs with regard to the climate crisis.
Andre Logan from Ceres, the coordinator of the investors’ climate action, said that it is big oil’s cataclysmic day when all things changed. He added that the response of the industry impacts the survival of the companies in the upcoming transition.
Phillips 66 and ConocoPhillips are two more big oil companies that have seen investors revolting because of climate inaction, but the Shell judgment is unprecedented. Gas and oil majors have suffered record losses during the pandemic. But if governments are serious about tackling climate change, coal, gas, and oil will have no further investments.