We have strengthened the algorithm for discounting the impact older evidence on an organization's top-line metrics. Evidence from within the last two years is weighted the strongest and then gradually weighted out of the scoring calculations as it gets older. All evidence that is 5 years or older is completely removed from the scoring calculations. Users will still be able to view older evidence items that are archived the scoring matrix below, but these will not be impacting the organization's current scores.
We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
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.
Climate Policy Engagement 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 advocate for policies to advance fossil fuel production and consumption, particularly fossil gas. It also retains membership to industry associations that engage negatively on climate change policies.
Top-line Messaging on Climate Policy: Shell appears to support climate action through its top-line messaging on climate policy. In its 2023 Sustainability and Lobbying Reports, published in March 2024, the company stated support for GHG emissions reductions in line with the 1.5°C target and the Paris Agreement. It also supported policies designed to achieve this aim.
Engagement with Climate-Related Regulations: Shell appears to have largely positive 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 only while gradually phasing out free allowances in the ETS.
Shell’s engagement with renewable energy legislation also appears to be generally supportive. 2023 Sustainability and Lobbying Reports, published in March 2024, Shell stated that it supported renewable energy tax credits in the US Inflation Reduction Act. In the same report, Shell also stated support for the UK sustainable aviation fuel (SAF) mandate in June 2023 comments to policymakers, but with major exceptions, such as not supporting feedstock restrictions for hydrogen-based fuels. In the same comment, the company also opposed stringent sustainability criteria for SAF's by opposing a cap on Hydro treated Esters and Fatty Acids (HEFA) fuels and advocating for first generation ethanol fuels to be eligible.
On the need for GHG emissions regulation, Shell’s position appears to be varied. In February 2024 comments to policymakers in Canada, Shell appeared to not support the proposed methane regulation for the oil and gas sector. However, in February 2023 comments, it appeared to support the US EPA's Methane Regulation Supplementary Proposal, although its submission does not include comments on key policy elements. In February 2022, Shell Canada President, Susannah Pierce, testified against a proposed cap on oil and gas emissions in Canada in testimony to the Standing Committee on Natural Resources.
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 the taxation of aviation fuels based on CO2 emission.
Positioning on Energy Transition: Shell appears to support a long-term role for fossil fuels in its global advocacy, and has been increasingly vocal in this support since the arrival of CEO Wael Sawan and the invasion of Ukraine. In the company’s 2023 Climate and Energy Transition Lobbying Report, published May 2024, it stated support for the continued investments in fossil gas infrastructure and promoted the role of liquified natural gas (LNG).
Shell also appears to be unsupportive of policy that excludes hydrogen produced from fossil fuels. In its 2024 Climate Policy Positions, it states that it supports policy to promote decarbonized hydrogen development and uptake. However, it opposed the proposed US Clean Hydrogen Tax credit in February 2024 comments. Similarly, in Canada, Shell advocated for the removal of the requirement for lifecycle hydrogen emissions to be considered in Canada's Clean Electricity Regulations in November 2023 comments.
Shell does support the decarbonization of transport. In its 2023 Sustainability and Lobbying Reports, published in March 2024, it stated support for policy measures to decarbonize road transport in Europe, Canada, the US and Australia. Also in Canada, in March 2023, it supported specific purchase incentives for zero-emission vehicles and EV charging infrastructure. Also, in the UK, Shell appeared to support an electric vehicle sales mandate in a consultation response and supported taxing jet-fuel based on its CO2 content in a consultation response.
Industry Association Governance: Shell discloses a partial account of the company's indirect climate policy engagement. In 2024, Shell published an update to its ‘Climate and Energy Transition Lobbying Report 2022’ which provided an update on 10 associations in which Shell had found partial misalignment, including the American Petroleum Institute, Australian Energy Producers the Chamber of Minerals and Energy West Australia, the National Association of Manufacturers and the US Chamber of Commerce. Shell confirmed it continues to engage with these associations and has retained memberships of those it deemed to have partial misalignment with in 2022.
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 Q3 2024.