HSBC helped oil and gas industry raise $47bn despite net-zero pledge

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Original article by Josephine Moulds republished from The Bureau of Investigative Journalism under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

The bank’s work for businesses expanding production of fossil fuels is a stark contrast to its climate change promises

Every year business and world leaders jet into Davos to discuss climate change and other global issues at the World Economic Forum. And every year they are met with vigorous accusations of hypocrisy. Those accusations may well be levelled at the executives from HSBC – one of the world’s top funders of fossil fuel expansion – as they mingled with their peers in the pretty Swiss ski town this week, discussing how to develop a long-term strategy for climate, nature and energy.

HSBC says delivering a net-zero global economy is “a pillar of our strategy as a business”. In December 2022, the bank made the shock announcement that it would stop financing new oil and gas fields. Environmental campaigners celebrated, with the responsible investment charity ShareAction saying the decision set “a new minimum ambition for all banks committed to net zero”.

But on the same day, HSBC bankers started selling shares in the refining business of Saudi Aramco, one of the most aggressive expanders of oil and gas. An investor in HSBC told the Bureau of Investigative Journalism that the bank’s policy has been cleverly worded to allow it to fund some of the world’s biggest polluters while boasting about its green credentials.

An analysis of Refinitiv data by TBIJ has found that in the year since HSBC’s new policy was announced, the bank has helped raise more than $47bn (£37bn) for companies that are expanding the production of oil and gas, despite dire warnings from scientists that this will push the world beyond its survivable limits.

Fatih Birol, executive director of the International Energy Agency, told ITV News: “In the world, if we make large scale oil, gas and coal development, we cannot reach our 1.5 degrees target, full stop.” He said if a bank is serious about aligning its business with net zero, it cannot continue to fund companies developing new oil and gas fields.

Andrew Harper, chief responsibility officer at Epworth, an investment manager that holds HSBC shares, said: “[HSBC’s] policy, which is supposed to act as a safety net for the climate, is by design letting the bank circumvent its pledges by allowing them to adhere to the letter rather than the spirit of what they’re claiming.

“As investors, we’re not going to be fooled by the marketing, by the pledges, by these policies. We want to see real change and for them to seriously end new fossil fuel financing, no loopholes. Anything short of that is the bank trying to dupe its key stakeholders.”

HSBC said its policy allows the bank to continue providing finance “at a corporate level” and its approach “is based on the latest science for achieving net zero and follows the UN-backed approach for climate target setting and net zero alignment for banks”.

New projects, no problem

In its feted policy, HSBC notes that global demand for oil and gas to 2050 is “more than met by existing [oil and gas] fields”. It says the bank will therefore no longer provide finance for “new oil and gas fields and related infrastructure whose primary use is in conjunction with new fields”.

However, that has not stopped HSBC from funding companies that are exploiting new oil and gas fields, and providing the necessary infrastructure to do so.

In the first half of last year, HSBC, with other banks, helped the UAE’s state oil and gas company, Adnoc, raise $3.2bn from selling shares in its gas and logistics businesses. Adnoc will receive a further cash boost of $3bn in hefty dividends from Adnoc Gas.

Separately, HSBC helped arrange a $3.2bn loan for Borouge 4, a petrochemicals plant that will be a key customer for Adnoc’s gas, and was described by its project director as “an enabler of Adnoc’s growth strategy”.

Scientists agree that we cannot develop any new oil and gas fields if we are to limit global heating to 1.5C. Adnoc plans to increase oil production by 25% between 2023 and 2027, however, which would dramatically overshoot these limits.

Last year, Adnoc rubber stamped the exploitation of a vast new gas field off the UAE coast, which threatens a vital habitat for sea cows. Burning the gas Adnoc plans to extract from this field would produce 30m tonnes of carbon dioxide per year – more than Denmark’s annual emissions.

HSBC has similarly close ties with Saudi Arabia’s national oil company. The share sale for Saudi Aramco’s refining business, Luberef – which HSBC bankers were working on as it unveiled its new oil and gas policy – raised $1.3bn. After the share sale, Saudi Aramco remains a 70% shareholder of Luberef and has management control of the business.

A couple of months later HSBC bankers helped raise $3bn in bonds for Greensaif, a company set up for the sole purpose of taking a stake in Saudi Aramco’s gas pipelines business, alongside Saudi Aramco, which retained the controlling stake.

And in another wildly successful share offering, HSBC helped raise $1.2bn for Ades Holding, which provides oil drilling rigs primarily to Saudi Aramco, among other oil and gas expanders in the region. Adnoc and Saudi Aramco declined to comment.

Adnoc is investing heavily in offshore expansion in the United Arab Emirates Giuseppe Cacace/AFP via Getty Images

HSBC rejected the suggestion that its policies allow for financing that is at odds with a net zero transition. “Net zero-aligned scenarios require continued, though declining, financing of fossil fuel supplies to meet energy demand, security, and affordability during the transition.”

The bank said its policy makes clear that it will continue to provide finance for companies with transition plans that align with its climate commitments. “HSBC’s approach is to engage with our major oil and gas clients on their targets and transition plans, and to align our oil and gas financing portfolio to a 2030 net zero aligned financed emissions target.”

Transition plans

Saudi Aramco, the world’s biggest polluter, does not appear to be preparing for a transition away from fossil fuels. The company expects to grow oil production by 8% by 2027, and increase gas production by up to 60% by 2030. Last year UN experts sent a letter of concern to Aramco – and its banks, including HSBC – saying its ongoing expansion of fossil fuel production threatens human rights by worsening climate change.

HSBC has chased business in the oil-rich Middle East and was last year named the region’s best bank for financing by Euromoney. Julian Wentzel, HSBC’s head of global banking in the region, told the magazine: “We have been at the nucleus of every major deal in the region, providing the full suite of banking services to our valued partners.”

Ed Matthew, campaigns director of think tank E3G, told TBIJ: “There’s a complete conflict between [HSBC’s] ambition to be at the heart of Middle Eastern oil and gas development and their commitment to start to pull out of fossil fuel financing globally.

“They can’t have their cake and eat it. Either they’re serious about delivering on the Paris Agreement or they’re not. At the moment, they’re putting short-term profits ahead of a habitable planet.”

Aggressive fossil fuel expansion

HSBC also funded oil and gas businesses far beyond the Middle East. In December, the bank helped arrange a $5bn loan for TransCanada Pipelines, which is among the top companies in the world expanding infrastructure for oil and gas, according to the Rainforest Action Network. (TC Energy, which owns TransCanada Pipelines, said: “Sustainability is foundational in everything we do.”) A few weeks later, the bank helped secure a $4.7bn loan for Occidental Petroleum, which is buying a Texas oil driller to expand its operations in the biggest shale field in the US.

In Europe, HSBC was among the banks that arranged a $3.3bn loan for Eni, the Italian oil and gas expander. Eni announced last year that it plans to increase its oil and gas extraction by 3-4% a year until 2027.

Experts have praised HSBC’s oil and gas policy for prohibiting funding for infrastructure linked to new oil and gas fields, in addition to the projects themselves. But the bank has continued to raise money for companies involved in the frantic building of export terminals for natural gas on the US southern coast.

The expansion of gas drilling and export in the region has been described as a “carbon bomb” – if all the planned projects are built, the associated annual emissions would outstrip those of Russia. Last year, HSBC, together with a slew of other banks, helped arrange loans worth $14.3bn for two of the companies building gas export hubs in the region.

HSBC was also among a group of banks to arrange loans worth $6bn for Baker Hughes, which provides oilfield services and equipment to oil and gas companies around the world. It helped raise a further $790m in share sales for oil drilling services companies Saipem and Nabors during the year.

At Davos there has been plenty of debate about how to limit global heating to 1.5C but campaigners fear it will remain just that. “Davos has always been a lot of talk and not much action,” said E3G’s Matthew. He would like to see stricter regulation of fossil fuel funding. “We can’t just leave it in the hands of banks, we need stronger action by governments and central banks to help prevent these investments. They need to introduce penalties for banks which are continuing to finance fossil fuel expansion.”

Header image: A liquified natural gas terminal on the Texas Louisiana border in the United States. Credit: The Washington Post via Getty Images.

Reporters: Josephine Moulds
Environment editor: Robert Soutar
Impact producer: Grace Murray
Deputy editor: Chrissie Giles
Editor: Franz Wild
Production editor: Frankie Goodway
Fact checker: Alice Milliken

This reporting is funded by the Sunrise Project. None of our funders have any influence over our editorial decisions or output.

Original article by Josephine Moulds republished from The Bureau of Investigative Journalism under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

Continue ReadingHSBC helped oil and gas industry raise $47bn despite net-zero pledge

Greta Thunberg joins protest against Farnborough Airport expansion to demand ban on private jets

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Climate activist Greta Thunberg is joining local residents, Extinction Rebellion activists and climate change campaigners outside Farnborough Airport today (27 January) to protest against plans to increase private jet flights from 50,000 to 70,000 a year. The protesters are also calling for a total ban on private jets, which are up to 30 times more polluting than passenger airliners.

Greta Thunberg said: “The fact that using private jets is both legally and socially allowed today in an escalating climate emergency is completely detached from reality.

“There are few examples that show as clearly how the rich elite is sacrificing present and future living conditions on this planet so they can maintain their extreme and violent lifestyles.”

Hundreds of protestors will gather in Farnborough town centre at 11am today to march alongside Thunberg to Farnborough Airport, setting off pink smoke flares and waving banners proclaiming ‘Flying to Extinction’, ‘Stop Private Flights Now’, ‘No to Airport Expansion’ and ‘Private Flights = Public Deaths’.

This is the latest in a series of protests against the airport’s planning application, which seeks to more than double weekend flights and boost the use of heavier, more polluting private jets. In 2022, there were 33,120 flights to and from the airport, a 27% increase  compared to 2021’s total of 26,007. Flights to and from Farnborough  averaged just 2.5 passengers per flight. Currently 40% of flights to and from the airport are empty, according to research by campaign group Possible. Despite claiming the majority of flights are for business use, the research showed that most Farnborough flights are headed to holiday destinations. Last September a ‘pets on jets’ service launched to fly dogs and their owners from Dubai to Farnborough and back.

Todd Smith, former airline pilot and Extinction Rebellion spokesperson, said: “Flying is the fastest way to fry the planet, and private jets are the most polluting way to fly. Surely it’s a no brainer to ban private jets and stop expanding these luxury airports in the midst of a climate crisis? Survey after survey, as well as several citizens’ assemblies have shown this would be very popular and has widespread support from the general public.

“For most people, life has become more difficult. The cost of heating our homes, buying food and paying our bills has increased massively. So imagine looking out our windows to see yet more private jets flying billionaires around.

“Is this a fair society that we live in, or is there one set of rules for the majority, and another for the elites? Plans to expand the UK’s largest private jet airport seem to make this clear.”

Godalming resident Chris Neill, 67, a retired psychotherapist, said: “We’re in a global climate and ecological emergency. We need to reduce carbon emissions fast and there’s no realistic plan for taking the carbon out of jet fuel. Until there is, we need to fly much less, not more.

“This plan to expand a luxury airport used exclusively by very wealthy people at a time when ordinary people are struggling to manage everyday life is reckless, stupid and selfish. We need a government which has the courage to stop this.”

Continue ReadingGreta Thunberg joins protest against Farnborough Airport expansion to demand ban on private jets

Priest, 73, among climate activists made to wear GPS tags for years

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Original article by Anita Mureithi republished from Open Democracy under a Creative Commons Attribution-NonCommercial 4.0 International licence.

Just Stop Oil member Tim Hewes has to lead church services with an ankle tag on – despite not yet having faced trial

The 73-year-old priest has long taken part in direct action with other campaign groups including Insulate Britain, Extinction Rebellion and Christian Climate Action calling for climate justice  | Mark Kerrison/In Pictures via Getty Images

A 73-year-old priest accused of helping plan a climate protest on the M25 has been forced to lead church services while wearing a GPS ankle tag for two years.

Tim Hewes, from Oxfordshire, is among at least ten members of Just Stop Oil who were given the tags despite not having been convicted of a crime. Hewes, who previously sewed his lips shut outside a newspaper office, is also barred from going on the M25 or taking part in any actions to oppose the climate crisis.

On one occasion, Hewes said he was thrown into the back of a police van and locked up overnight after being accused of breaking his bail conditions because his ankle monitor failed to charge. He says the tag was faulty and he was released once the court realised.

“Now if there’s a knock at the door, I think, well, it’s either the tag team or the police,” he told openDemocracy.

“The difficulty with the GPS is that, although I don’t have a curfew, I’ve still got to sleep at home.

“I asked my solicitor: ‘What if I want to go and see the dawn, or something like that?’ and she said: ‘Well, between 12 and five is probably about your limit.’ So, that would rule out midnight mass… Why should I not be able to do that? You know where I am.

“We’re supposed to be able to protest… The perpetrators of real, serious harm in this country are actually in government. What are we supposed to do?”

Hewes, who was speaking to openDemocracy in December and was in fact able to attend midnight mass without a hitch on Christmas Day, had been arrested in November 2022 and charged with conspiracy to cause a public nuisance. He has worn the tag since January 2023 after being held on remand at Wandsworth Prison for six weeks, and has to keep it on until his trial begins in February 2025. Tags must be worn at all times for as long as the court decides.

While he denies the charge, Hewes’s tag prohibits him from going on the M25 and taking part in or organising climate protests. Following previous action with other climate campaign groups such as Extinction Rebellion, Insulate Britain and Christian Climate Action, he says he has faced increasingly harsh treatment from the police and justice system.

Hewes was arrested on a Sunday afternoon. He said he had just put his collar on as he prepared to take part in a church service when he looked out of the window and saw his garden “swarming with police”.

“They shouted up: ‘If you don’t come down and open the door, we’re going to break it down now.’ And they got what they call a ‘big red key’, which is a euphemism for the battering ram. It was scary.”

He added: “Sunday afternoon was just never the same for me.”

Hewes said he was initially embarrassed to lead services with his tag on, and believes climate activists are being heavily criminalised in order to silence and discredit them.

Suella Braverman talked about Just Stop Oil in the same breath as terrorists,” he told openDemocracy. “That’s outrageous. We’re peaceful protesters. The climate crisis is an existential threat.”

Braverman, the former home secretary who was forced out after inciting a far-right mob to storm the Cenotaph in November, referred to the activist group as “extremists” in 2022 and said they were “out of control” following a series of protests on the M25.

Marcin Wawrzyn, 42 – who was arrested after 20 minutes of ‘slow marching’ with Just Stop Oil in November – told openDemocracy that being given a tag felt “unfair” and “disproportionate”.

“It felt like a punishment and for what?” he said. “I was marching in the road – where else would you protest? The judges of ECHR say roads are the most appropriate places for protests and anything under 90 minutes cannot be seen as disruptive.”

Mentally, it was harsh – I felt like a dog on a leash

Wawrzyn was charged under section 7 of the Public Order Act 2023, which bans any act that “interferes with the use or operation of any key national infrastructure”. He has pleaded not guilty, and his case is expected to begin in 2025.

Under the conditions of his tag, Wawrzyn was prohibited from crossing the River Thames from his home in Wandsworth, south-west London, and from going into north London for a month. Though his tag has now been removed, he described feeling isolated.

“Despite my work being in north London, I was excluded from my office for a month, which is something a court shouldn’t do. But that’s what happened to me. Mentally, it was harsh – I felt like a dog on a leash.

“I felt detached and like I was prevented from having human contact with people I really care about.”

Hewes agreed. “I’m a marked and tracked man,” he said. “It’s really frustrating. As activists, one of the things that helps our mental health is the fact that you are trying to do something, however feeble it might appear to other people.”

Last month, Just Stop Oil wrote to the Met Police after the force claimed that policing the group’s protests cost almost £20m. Just Stop Oil said that “arresting non-violent grandmothers, teenagers, vicars, medics, engineers” was a “waste” of resources.

But Wawrzyn added that campaigners have not been deterred by the crackdown. “The fact that the state reacts in such a way only emboldens us and gives us the assurance that they’re actually noticing what we’re doing and they are actively fighting us,” he said. “If anything, we’re galvanised and we’re drawing more and more people in.”

Original article by Anita Mureithi republished from Open Democracy under a Creative Commons Attribution-NonCommercial 4.0 International licence.

Just Stop Oil protesting in London 6 December 2022.
Just Stop Oil protesting in London 6 December 2022.
Continue ReadingPriest, 73, among climate activists made to wear GPS tags for years

New Shell Files Could Aid Climate Cases, Attorneys Say 

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Original article by Matthew Green and Merel de Buck republished from DeSmog.

Credit: Sabrina Bedford.

Latest documents unearthed by Dutch climate activist seen as “valuable sources” for litigators.

Newly-discovered Shell documents dating back decades could help strengthen lawsuits aiming to hold the oil major to account for climate damages, climate attorneys say.

Among the files, reported for the first time today by DeSmog and Follow The Money, and published on Climate Files, there is a 1970 industry journal article where Shell appears to accept responsibility for harms caused by its products. A trove of Shell publications from the 1980s and 1990s foresee the “major adverse changes” the “greenhouse effect” is liable to cause to the climate. 

And a 1998 report spells out Shell’s reasons for leaving the Global Climate Coalition, a now defunct lobby group that worked to undermine climate science. The document shows that Shell had acknowledged the need to adopt  “prudent precautionary measures” to avoid the worst impacts of the climate crisis — even as it continued to push for more production of oil and gas.   

“It is feared that a further rise in carbon dioxide levels in the atmosphere could lead to a higher average surface temperature on Earth, which could have far-reaching environmental, social and economic consequences,” wrote the authors of a 1987 internal Shell publication entitled “Air Pollution: an Oil Industry Perspective.”

Cover of the 1987 internal Shell publication “Air Pollution: an Oil Industry Perspective.”

“Global warming could challenge the very fabric of the world’s ecological and economic systems,” Shell executive Ged Davis wrote in a contribution to a report by the Organisation for Economic Co-operation and Development (OECD) published two years later.

Vatan Hüzeir, a climate activist and doctoral candidate in sociology at Rotterdam’s Erasmus University, unearthed the documents over five years of research, gathering thousands of pages of Shell-related material from archives, former employees, and other sources.

The latest materials add to an initial tranche published in April last year which showed that even as Shell’s awareness of the potentially devastating consequences of climate change grew during the 1970s and 1980s, the company downplayed or omitted key risks in public communications; emphasised scientific uncertainties; and pushed for more fossil fuels.

Shell and other oil and gas companies have been named as defendants in dozens of U.S. climate lawsuits brought by the attorneys general of states such as New Jersey, Vermont, and California, as well as Washington, D.C. and other municipalities across the country. Some of these cases have been brought under consumer fraud or protection laws that penalise companies for misrepresenting their products to the public.

The Washington D.C.-based Center for Climate Integrity, which has filed briefs in support of many of the climate cases against Shell, said that the latest documents provide further evidence that the company has known for at least half a century that its products posed a threat to the climate, as well as the grave consequences of delaying action.

“These internal admissions are valuable sources for litigators around the world seeking to hold Shell accountable for its climate deception under a variety of legal theories,” Corey Riday-White, senior staff attorney at the Center for Climate Integrity, told DeSmog. “While Shell privately acknowledged the dangers of using its products as intended, the corporation publicly sowed doubt about the science and fought efforts to regulate its pollution.”

Hüzeir hopes the latest documents will support two additional and complementary legal strategies: showing that Shell has long accepted some liability for harms caused by its products — including, by implication, climate change — and demonstrating that even as Shell supported lobby groups that sought to block meaningful action to curb fossil fuel use, senior executives acknowledged the need for a “precautionary” approach to the growing climate crisis.    

In response to a request for comment, Shell referred DeSmog to a previous statement it has made regarding the lawsuits. 

“It is for government to determine the right trade-offs for society and put in place smart policy to enable fundamental change in the way society consumes energy,” a Shell spokesperson said.  

More than a dozen of the newly released documents, as well as the previous tranche published in April, can be viewed on Climate Files, under the title Dirty Pearls: Exposing Shell’s hidden legacy of climate change accountability, 1970-1990

Shell Knew

In July 2023, 20 Democratic members of Congress cited DeSmog’s initial coverage of the documents in a letter to U.S. Attorney General Merrick Garland, in which they requested a Department of Justice investigation into the evidence that Shell, ExxonMobil and other oil majors concealed their early knowledge of climate risks.

This spring, a Dutch court is due to hear Shell’s appeal of a 2021 order to slash the company’s carbon dioxide (CO2) emissions 45 percent by 2030, issued in response to a suit filed by environmental group Milieudefensie. Six other organisations also participated in the suit, including FossielvrijNL, a campaign group chaired by Hüzeir, as well as 17,000 Dutch citizens.  

“Shell must do its part to contribute to combating dangerous climate change,” Hague district court judge Larissa Alwin said, reading out the ruling.

Hüzeir believes the latest tranche of documents will strengthen cases brought by climate litigators in Europe and North America, in part by providing clues to the possible existence of additional Shell documents that could be obtained through discovery — a pre-trial procedure in the U.S. legal system that parties involved in a lawsuit use to obtain evidence from each other.

“You have to ‘crack the shell,’” Hüzeir told DeSmog. “With the existing documents in hand, and perhaps many more yet to be discovered, prosecutors, litigators and campaign groups can ground their demands for Shell to be held accountable in even more detailed fact and documentation.”

‘Annoying Consequences’

Among the new documents is an October, 1970 article in Dutch trade publication Chemisch Weekblad (Chemical Weekly), in which two authors from the University of Leiden reported on their research into “chemistry and ethics” — including the results of interviews with petrochemical executives. Representatives from Shell had appeared to acknowledge that the company bore some responsibility for the problems that its products would cause.

“If a product is used, as indicated by Shell, and annoying consequences nevertheless arise, Shell feels partly responsible,” they told the researchers.

Excerpt from an October, 1970 article in Dutch trade publication Chemisch Weekblad (Chemical Weekly).

Hüzeir said the document, and others like it, could support litigators to argue that Shell’s apparent early admission of some liability for the side-effects caused by its products should, by extension, also include climate impacts from burning its oil and gas, now known as “Scope 3” emissions. 

Later documents cast new light on Shell’s growing understanding of the risks posed by climate change. In a March 1985 article in the journal Conservation & RecyclingT.G. Wilkinson, who worked at the time in the Ecology Section of Shell UK’s Long Term Business Planning Unit, explored the risks posed by “energy-generated pollution.” 

“Burning of fossil fuels which have taken millions of years to form has effectively upset the balance leading to an increase in CO2 in the atmosphere,” Wilkinson wrote. “The Greenhouse effect could lead to some melting of the ice-cap and a significant change in the climatic pattern throughout the world. Whilst this will cause major adverse changes to some areas, others will benefit.”

Excerpt from a March 1985 article in the journal Conservation & Recycling by T.G. Wilkinson, who worked at the time in Shell UK’s Long Term Business Planning Unit.

Wilkinson went on to explore whether a precautionary approach should be adopted to prevent the “potential enormous effects on the world’s climate.”

“It is likely that the continued use of fossil fuel will come under close scrutiny in the future if adverse increases in world temperature are measured and can be linked to CO2 release. A quandary remains into how quickly a response is needed if a warming trend is identified, and to whether the response should be preventative (i.e. a worldwide low fossil fuel strategy) or curative (i.e. specific actions taken by individual countries).

“The dilemma therefore remains as to whether to encourage the continued use of fossil fuels with the potential enormous effects on the world’s climate.”

Wilkinson returned to this dilemma in his conclusion, again noting the dangers posed by “emissions and discharges” caused by fossil fuels and nuclear power. 

“As well as the benefits of these energy developments however, there are also consequences to the environment arising from the emissions and discharges which are part of the process operations or are implicit in the subsequent use of the fuel,” Wilkinson wrote. “There is concern that energy-generated pollution could well affect the quality of life that has at least in part been made possible by energy developments.”

Graphs showing growing carbon dioxide emissions from fossil fuels, and rising CO2 concentrations in the atmosphere, in Shell staffer T.G. Wilkinson’s March 1985 article in Conservation & Recycling.

Winners and Losers

Further evidence of Shell’s growing understanding of the risks posed by burning its products appears in the 1987 internal Shell publication “Air Pollution: an Oil Industry Perspective.” 

“It is feared that a further rise in carbon dioxide levels in the atmosphere could lead to a higher average surface temperature on Earth, which could have far-reaching environmental, social and economic consequences,” the document said. “A lot of scientific research is being done to determine which climatic changes can occur and which measures should be taken.”

Shell’s understanding of the gravity of the dangers was also apparent in the 1989 OECD report, entitled “Energy Technologies for Reducing Emissions of Greenhouse Gases.” Davis, the Shell executive, who warned that “global warming could challenge the very fabric of the world’s ecological and economic systems,” also foresaw the possible cost to future generations of failing to curb emissions.

“Whatever policies are chosen there will be ‘winners’ and ‘losers,’” he wrote. “Two groups who could bear particularly heavy costs will be: Future generations who would have to live with the costs of adaptation, and…Those in countries yet to industrialise who would face constraints on energy use…How should we allocate resources between prevention and adaptation?”

An excerpt from Shell executive Ged Davis’ contribution to a 1989 report by the OECD.

Shell planners spelled out the risks even more starkly in an October 1989 confidential scenario exercise, previously reported by DeSmog. The authors warned that climate-fuelled migration could spark conflicts by swamping borders in the U.S., Soviet Union, Europe, and Australia, and that “civilisation could prove a fragile thing.”

‘Too Late’

In the 1990s, as the oil industry increasingly backed lobby groups and think tanks working to undermine climate science, the stark assessments of the risks of burning fossil fuels made by Shell staff in the previous decade gave way to a greater emphasis on scientific uncertainty.  

In an October 1990 internal Dutch-language publication entitled “Climate Change,” Shell acknowledged that many leading scientists were convinced of the existence of the “greenhouse effect” — the term then used for climate change. 

But the publication also echoed a message  seen in other Shell documents that Hüzeir has turned up: emphasizing uncertainty about the magnitude and timing of climate impacts, “if they do come.” 

“There is a considerable period of time (perhaps decades) between the increase in greenhouse gases and their ultimate effect on the climate,” the report stated. “As a result, by the time the enhanced greenhouse effect has been conclusively proven, it may be too late to do anything about it.” 

Nevertheless, the report went on to acknowledge the importance of reducing greenhouse gas emissions, and referenced the possibility of using carbon taxes to promote a shift away from fossil fuels. “It is widely recognized that emissions of the main greenhouse gases must be limited if there is to be any chance of reducing the further strengthening of the greenhouse effect,” the document said.

The report also noted technologies that could reduce emissions, ranging from switching to fuels that produce less CO2 per unit of energy, to boosting nuclear and renewables such as solar and wind energy. Hüzeir hopes this explicit acknowledgement of the existence of alternatives could strengthen the hand of litigators who want to prove that Shell chose to continue boosting production of fossil fuels, even while knowing that cleaner options were available.

The cover of the October 1990 internal Dutch-language publication entitled “Climate Change.”

Shell’s emphasis on scientific uncertainty was evident again two years later, in September 1992, when the company’s Group Planning department published a “Business Environment Occasional Paper” on the “Potential Augmented Greenhouse Effect, & Depletion of the Ozone Layer.”

In contrast to Shell authors who had squarely recognised the primary role of fossil fuels in driving climate change in documents and graphs published during the 1980s, the authors emphasised that it was difficult to assess the extent to which fossil fuels were responsible. 

“Because of the complexity of the biogeochemical cycles, it is very difficult to aportion [sic] the increase in greenhouse gas concentrations to any particular cause,” the paper said. “The increase in CO2 and methane has corresponded with increasing industrialisation, use of fossil fuels, intensification of agriculture and deforestation. As a minimum statement, therefore, human activities must have contributed to the increase in carbon dioxide and methane.”

An excerpt from Shell’s September 1992 “Business Environment Occasional Paper” on the “Potential Augmented Greenhouse Effect, & Depletion of the Ozone Layer.”

Meanwhile, in other documents, Shell recognised the need to adopt a “precautionary” approach to climate change. In a 1993 report by the World Energy Council, a think tank backed by government and industry, where Shell’s managing director at the time, John Jennings, served on the board, the word “precautionary” appears more than 20 times. 

“Given the as yet unknown consequences of continued and increasing greenhouse gas emissions and impacts, the ability to ascertain the ‘economically optimal’ level of emissions and their mitigation, as required by a cost-benefit approach, is impossible,” the report said. “As a matter of simple prudence, therefore, action based on the precautionary principle is advocated.” 

An excerpt from a 1993 report by the World Energy Council, where Shell held a seat on the board.

Hüzeir argues that such explicit acknowledgements of the need for precautionary measures will further bolster lawsuits alleging that Shell had developed a thorough understanding of the dangers posed by fossil fuels, even as it issued other publications that emphasised scientific uncertainties, and backed lobby groups working to undermine climate action.  

‘Profits and Principles’

Shell was a founding member of the Global Climate Coalition (GCC), the outspoken oil industry lobby group, which was formed in 1989 to actively promote uncertainty and doubt about climate science in order to delay climate action.

Hüzeir believes Shell’s explanation of why it left the GCC in 1998 in an English-language sustainability report called “Profits and Principles – Does There Have to Be a Choice?” could provide a further hook for litigators.  

DeSmog has previously documented that the GCC had attempted to limit the strength of statements regarding the human causes of climate change made by the Intergovernmental Panel on Climate Change, the UN’s scientific advisory body, in the run-up to the 1997 climate conference where nations agreed to the Kyoto Protocol.

The “Profits and Principles” document said that the “main disagreement” between Shell and the GCC centred on the group’s opposition to the Kyoto agreement, which aimed to cut global greenhouse gas emissions by five percent by 2012.

“The GCC is actively campaigning against legally binding targets and timetables as well as ratification by the US government,” the report said. “The Shell view is that prudent precautionary measures are called for.”

An excerpt from Shell’s 1998 English-language sustainability report called “Profits and Principles – Does There Have to be a Choice?

Hüzeir said that Shell’s admission that it saw the need for these “precautionary measures” affirms that the company had long understood the risks posed by the climate crisis — knowledge apparent in many earlier files. 

This document also raised the question of why Shell had continued to fund the GCC, as late as 1998 — the year it left the organisation — despite that understanding, Hüzeir said.  

Shell’s acknowledgement that its position in GCC had become untenable could also help litigators demonstrate that oil and gas companies that remained in the group until it disbanded in 2002 had been acting in bad faith, Hüzeir added.

“We’ve heard many times from the fossil fuel industry that it was unsure whether or not to take early action on the climate crisis, because there were uncertainties in the science,” Hüzeir said. “But Shell’s deepening embrace of the precautionary principle, as revealed in this document, shows that Shell was well aware of the crisis ahead. What else did they know?”

Original article by Matthew Green and Merel de Buck republished from DeSmog.

Continue ReadingNew Shell Files Could Aid Climate Cases, Attorneys Say 

Congressman: DOJ Investigation of Big Oil Is Now “Even More Urgent” Following Shell Revelations

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Original article by Emily Sanders, ExxonKnews republished from DeSmog.

Credit: Tess Abbot/ExxonKnews

With more proof of Shell’s climate deception, Rep. Ted Lieu is once again urging the Department of Justice to look into whether fossil fuel companies broke the law.

After new evidence emerged last week showing that oil major Shell internally acknowledged the dangers of their fossil fuel products decades ago, a member of Congress is renewing his previous call for the U.S. Department of Justice to investigate whether Shell and other Big Oil companies’ “alleged campaigns of climate deception” may have violated federal law.

The company documents, first unearthed by Dutch researcher Vatan Hüzeir and reported last week by DeSmog and Follow the Money, reveal Shell executives and employees predicting “major adverse changes” to the climate from fossil fuel emissions — and admitting Shell’s role in causing the problem. “Global warming could challenge the very fabric of the world’s ecological and economic systems,” warned Shell executive Ged Davis in one newly uncovered document from 1989. 

“This new set of documents further demonstrates that Shell privately knew about the dangers its products would cause to the environment yet continued to deceive the public in pursuit of company profits. This is wrong and potentially illegal,” said U.S. Rep. Ted Lieu (D-CA), who along with Sen. Richard Blumenthal (D-CT) led 20 members of Congress in a letter last year urging the Department of Justice to look deeper into evidence that Shell, ExxonMobil, and other fossil fuel majors “lied — and continue to lie — to the public about their central role in exacerbating the climate crisis.” 

“These new documents provide additional evidence and make our calls for an investigation even more urgent,” Lieu told ExxonKnews in response to the latest Shell revelations. 

The lawmakers’ July 25 letter cited an initial batch of internal Shell documents released by Hüzeir last March. The evidence, they wrote, should inspire the DOJ to “investigate Exxon, Shell, and other members of the fossil fuel industry to determine whether they violated RICO, consumer protection, truth in advertising, public health, or other laws.” 

A separate letter from U.S. Sens. Bernie Sanders (D-VT), Elizabeth Warren (D-MA), Ed Markey (D-MA), and Ed Markey (D-OR) urged the DOJ to go even further and “bring suits against the fossil fuel industry for its longstanding and carefully coordinated campaign to mislead consumers and discredit climate science in pursuit of massive profits.”

The latest documents add to an abundance of proof that Shell was well aware of the harm its products would cause — and acknowledged its culpability for the damage.

“If a product is used, as indicated by Shell, and annoying consequences nevertheless arise, Shell feels partly responsible,” representatives from Shell told researchers from the Dutch University of Leiden in 1970.

Those “annoying consequences” — which turned out to be more catastrophic and deadly than just annoying — were plainly elucidated by the company in the years to follow. In a 1985 journal article, Shell employee T.G. Wilkinson observed that the burning of fossil fuels has “upset the balance” of carbon dioxide in the atmosphere, and “will cause major adverse changes to some areas.” 

“The dilemma therefore remains as to whether to encourage the continued use of fossil fuels with the potential enormous effects on the world’s climate,” Wilkinson wrote.

Two years later, an internal Shell report titled “Air Pollution: an Oil Industry Perspective” noted that a rise in CO2 in the atmosphere “could lead to a higher average surface temperature on Earth, which could have far-reaching environmental, social and economic consequences.”

In 1989, Shell executive Davis warned that “Two groups who could bear particularly heavy costs will be: Future generations who would have to live with the costs of adaptation, and…Those in countries yet to industrialise who would face constraints on energy use.”

Davis is now executive chair of world energy scenarios at the World Energy Council.

Armed with the information it needed to steer the world toward cleaner sources of energy, Shell embarked on a campaign to undermine climate action instead. 

The same year Davis made his prediction in the OECD report, Shell helped found the Global Climate Coalition (GCC), an oil industry lobbying group that worked to spread disinformation about climate science. 

A year later, in an internal publication, Shell admitted the need to reduce greenhouse gas emissions and embrace alternative sources of energy — but stated that “by the time the enhanced greenhouse effect has been conclusively proven, it may be too late to do anything about it.”

Shell went on to promote the idea that climate science was uncertain and downplayed the role of fossil fuels in the years to come. “It is very difficult to aportion [sic] the increase in greenhouse gas concentrations to any particular cause,” read one paper published by the company in 1992. 

When Shell left the GCC, citing its opposition to the Kyoto climate agreement, it explained in a 1998 report that “The Shell view is that prudent precautionary measures are called for.”

Hüzeir, the researcher who unearthed these reports, told DeSmog that documents like this could help litigators make the case against Shell in a growing wave of lawsuits seeking to hold the company accountable for knowingly fueling climate chaos. “Shell’s deepening embrace of the precautionary principle, as revealed in this document, shows that Shell was well aware of the crisis ahead,” he said. “What else did they know?”

The documents add to a heap of evidence that could spur the country’s most powerful public interest law firm to investigate Big Oil.

“If the allegations against ExxonMobil, Shell, and other major fossil fuel companies are true, their coordinated efforts to deceive Americans constitute the most consequential deception campaign in history, with potentially existential consequences for our planet,” Lieu and other members of Congress wrote in their July letter to the DOJ. “We respectfully request that the DOJ investigate whether these actions violated federal law.”

Since that letter was sent last year, more state and local governments have taken the companies to court for that deception. California — the most populous state in the nation and one of the world’s largest economies — sued Shell and other fossil fuel majors for climate damages and consumer fraud. Two Indigenous tribal governments in Washington State, forced to spend millions relocating their communities due to rising seas, filed their own lawsuit against oil giants. Honolulu’s climate accountability lawsuit cleared motions to dismiss the case by fossil fuel defendants, putting it on a path to be the first case of its kind to go to trial. 

The stakes of these legal efforts are only getting higher, as climate disasters continue to batter many of the same communities awaiting their day in court. The DOJ threw its support behind the plaintiffs in a U.S. Supreme Court brief the agency filed last March, but it hasn’t yet taken independent action against the fossil fuel industry.

“It’s time to hold polluters accountable for their lies, which could have existential consequences for our planet,” Lieu said.

Original article by Emily Sanders, ExxonKnews republished from DeSmog.

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Continue ReadingCongressman: DOJ Investigation of Big Oil Is Now “Even More Urgent” Following Shell Revelations