Royal Dutch Shell PLC (LSE:RDSB) chief executive Ben van Beurden has blasted the legal ruling last year that has forced the oil and gas giant to slash its carbon emissions.
In an interview on the Shell website, van Beurden described last year’s decision by the court in the Hague as a “body blow” to the company.
It was “deeply troubling” that a single business “should be held accountable for how the world produces and uses energy,” he said.
The Dutch court instructed Shell to reduce total emissions relative to 2019 by 45% by 2030, a ruling that also applied to vehicles using its fuel.
Shell has since said it will reduce its emissions by 50% within the new deadline but still intends to appeal the court verdict.
"[The ruling] goes against everything I believe in when it comes to climate change, namely that this is a societal problem, not a problem for a single company to solve,” van Beurden said on the company’s website.
Shell is Europe’s largest oil and gas group with a market value of £140bn and has been targeted by climate change campaigners who believe the energy sector is well behind other industries in cutting carbon emissions.
The company, which produces over 3mln barrels of oil per day, said it’s investing billions into hydrogen and alternative green energy sources.
Cutting oil and gas production before these renewable businesses are cash-accretive would leave it destined into a “valley of death”, he added.
“Today, motorists still need fuel for their cars, and many homeowners need natural gas for cooking and heating.
"Even if Shell stopped supplying these products, people would still need them, and they would buy them from other companies,” van Beurden added.
The CEO, who has worked for Shell for 38 years, blamed European Governments for fuelling the price volatility that in turn sent energy prices skyrocketing in recent months, as they “unnecessarily” lowered domestic production amid high demand.
Van Beurden also expressed regret over the shift in Shell’s headquarters to London from The Netherlands and said he tried to find a solution with the Dutch Government.
He described it as a very sad moment, but ultimately the corporate structure was proving to be a real handicap to “doing new things”.
“I felt there was no choice because of the need to move faster in the energy transition. It is the right thing to do for our company.”
Shell shares eased 2.7% to 1,819p.