Global Energy Leaders Under Increased Pressure To Reduce Emissions

In a ruling from the Hague District Court on May 26, 2021, the Court has ordered Royal Dutch Shell ("Shell") to reduce its CO2 emissions by 45% of its 2019 levels by 2030.

Milieudefensie voor Veranderaars (the "Claimants") claimed that Shell has an obligation to contribute to the prevention of climate change through its corporate policy, stemming from an unwritten standard of care in the Dutch Civil Code. The standard of care comes from Shell's endorsement of human rights and of soft law such as the UN Global Compact and the OECD Guidelines for Multinational Enterprises. Uniquely, the Claimants did not seek any compensation, only for Shell to reduce its emissions.

This ruling comes after Shell announced plans earlier in 2021 to reduce carbon intensity by 20% by 2030 and 100% by 2050 relative to its 2016 levels - a plan widely considered to be one of the sector's most ambitious. The Court did not find this policy to be concrete or certain enough to satisfy