Shell to leave oil lobby group over environmental disagreements

Royal Dutch Shell will leave an oil lobby group as its position on climate change is causing severe disagreements within the body.

In its first review of its association with 19 key industry groups, the company said it had found “material misalignment” over climate policy with the American Fuel & Petrochemical Manufacturers (AFPM) and would quit the group in 2020.

The findings were issued in a report that could pressure other companies to do the same and line up their business models with the Paris climate accord.

This is a sign of how investor pressure on oil companies could lead to changes in their behaviour regarding climate.

“AFPM has not stated support for the goal of the Paris Agreement. Shell supports the goal of the Paris Agreement,” the Anglo-Dutch company said in its decision on Tuesday.

“The publication of this report is a first step to greater transparency around our activities in this area,” it added. “Shell’s investors, and more broadly civil society, must be confident that we engage constructively with others on climate change.”

Shell also said it disagreed with AFPM’s opposition to a price on carbon and action on low-carbon technologies.

AFPM Chief Executive Officer Chet Thompson said: “Like any family, we aren’t always fully aligned on every policy, but we always strive to reach consensus positions on policies.”

“We will also continue working on behalf of the refining and petrochemical industries to advance policies that ensure reliable and affordable access to fuels and petrochemicals, while being responsible stewards of the environment.”