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Overall Assessment |
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Comprehensive |
Shell PLC has demonstrated a comprehensive level of transparency in disclosing its climate lobbying activities. The company has explicitly named numerous specific climate policies and legislation it has engaged with, such as the EU Fit for 55 package, the US Inflation Reduction Act, the EU Emissions Trading System (EU ETS) update, and the Renewable Energy Directive (RED). Shell has also disclosed its advocacy for a national emissions trading system (ETS) in Brazil, carbon market frameworks in India, and Safeguard Mechanism reforms in Australia, among others. The company provides detailed information about its lobbying mechanisms, including direct engagement with governments, participation in consultations, and indirect lobbying through industry associations and coalitions like the European Round Table for Industry, FuelsEurope, and the International Emissions Trading Association (IETA). Specific targets of its lobbying efforts, such as the European Commission, the US Congress, and the UK government, are clearly identified. Furthermore, Shell has been explicit about the policy outcomes it seeks, such as advocating for binding renewable energy targets, carbon pricing mechanisms, and the phase-out of free allocation under the EU ETS in favor of a Carbon Border Adjustment Mechanism (CBAM). These disclosures reflect a high degree of clarity and detail, showcasing Shell's commitment to transparency in its climate lobbying activities.
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4
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Overall Assessment |
Comment |
Score |
Comprehensive |
Shell demonstrates a comprehensive governance process for climate lobbying alignment, both direct and indirect, as evidenced by its detailed disclosures and structured oversight mechanisms. The company explicitly states that "Our advocacy, directly with governments, and indirectly through industry associations and coalitions, is a key part of how we implement our strategy," highlighting its commitment to ensuring alignment with climate goals. Shell has published its "Climate and Energy Transition Lobbying Report," which provides transparency into its lobbying activities and alignment with climate goals, including a review of "39 key industry associations" to identify and address misalignments. The report also details actions taken to address differences in positions with 10 associations, demonstrating a proactive approach to alignment. Furthermore, Shell has updated its "principles for participation in industry associations," which describe how it reviews the climate and energy transition policy and advocacy positions of key associations and addresses misalignment. The company plans to expand the scope of its lobbying disclosures to include additional countries, further enhancing transparency. Shell identifies responsible parties and processes for oversight, stating that "We have updated our principles for participation in industry associations. These principles set out our governance of our memberships," and commits to publishing reviews every two years, ensuring ongoing monitoring and accountability. This indicates a robust governance framework that encompasses direct and indirect lobbying activities, with clear monitoring mechanisms and accountability structures in place.
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4
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