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🗞️ Driving the news: Dutch environmental NGO Milieudefensie has issued a fresh legal warning to Shell, threatening court action unless the company halts its investments in new oil and gas projects
• In a formal letter, Milieudefensie accuses Shell of breaching its legal duty of care by failing to align its climate strategy with the goals of the Paris Agreement, despite an earlier Dutch court ruling affirming the company’s responsibility to cut emissions.
🔭 The context: This move follows an ongoing legal battle between Milieudefensie and Shell, which began with a landmark 2021 Dutch court ruling ordering Shell to reduce its emissions by 45% by 2030 — a decision Shell later overturned on appeal
• However, the appellate court upheld that Shell (see sustainability performance) bears a “special responsibility” as a major oil company and must consider the climate impact of fossil fuel expansion
• Shell has since moved its headquarters to the UK, raising questions about the enforceability of future Dutch rulings
🌍 Why it matters for the planet: The legal pressure on Shell underscores growing global scrutiny of fossil fuel companies’ roles in the climate crisis
• A successful case could set a precedent compelling other major emitters to cut back on new oil and gas developments
• It also reinforces the message from institutions like the International Energy Agency, which has warned that no new fossil fuel extraction projects are compatible with limiting global warming to 1.5°C
⏭️ What's next: Milieudefensie aims to bring the case to court if Shell does not comply with its demands to halt fossil fuel expansion and establish post-2030 climate targets
• Legal hurdles include Shell’s relocation to the UK, but Milieudensie’s lawyers argue that Dutch courts retain jurisdiction and that enforcement is possible via international treaties
• If successful, the case could ripple across financial institutions, investors, and insurers, amplifying the call for systemic decarbonisation
💬 One quote: “It doesn't matter where Shell is. The international assets of Shell… will give us a lot more grip on their equity.” — Roger Cox, lawyer for Milieudefensie
📈 One stat: Shell owns or partly owns more than 700 undeveloped fossil fuel assets, according to a joint report by Milieudefensie and Global Witness
See on illuminem's Data Hub™ the sustainability performance of Shell and its peers BP, TotalEnergies, and ExxonMobil
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