Citing climate differences, Shell walks away from U.S. refining lobby

Last month. Reuters wrote an article entitled “Citing climate differences, Shell walks away from US refining lobby.” Here are the lead paragraphs.

“Royal Dutch Shell Plc on Tuesday became the first major oil and gas company to announce plans to leave a leading U.S. refining lobby due to disagreement on climate policies.

The review is part of Shell’s drive to increase transparency and show investors it is in line with the 2015 Paris climate agreement’s goals to limit global warming by reducing carbon emissions to a net zero by the end of the century.

It is also the latest sign of how investor pressure on oil companies, particularly in Europe, is leading to changes in their behavior around climate. Last year, Shell caved in to investor pressure over climate change, setting out plans to introduce industry-leading carbon emissions targets linked to executive pay.”

Shell is not the first oil company to cave to investor pressure. Exxon Mobil and Occidental Petroleum (along with utility PP&L) have to inform shareholders of their progress to addressing climate change after shareholder votes required them to do so. Exxon also has two lawsuits it is dealing with accusing them of misleading investors on the financial impact of climate change.

Climate change is real and is impacting us now. The greater number of sunny days coastal flooding, increased number of droughts, increased and more severe forest fires and the added flooding due to slow moving storns are traceable to the impact of climate change, so says climate scientists. I encourage you to ask politicians what they propose to do about this existential threat to our future. If they do not respond or fail to offer any tangible ideas, do not vote for them. We must move forward as we have squandered much of our window to act.

 

Pope is at it again

Last week, Pope Francis again revealed why he is a global leader. Leveraging the biblical teachings that God wants us to take care of our environment, he reiterated his concerns on climate change to oil executives. Per a Wall Street Journal article called “Pope Francis Criticizes Continued Search for Fossil Fuels at Meeting with Oil Executives,” he encouraged oil executives to find ways to leave fossil fuel energy in the ground. Per the WSJ article:

“’Civilization requires energy, but energy use must not destroy civilization!’ he said at a Vatican climate change conference attended by top executives including Exxon Mobil Corp. Chief Executive Darren Woods, BP PLC Chief Executive Bob Dudley and BlackRock Inc. Chief Executive Laurence Fink.

At the conference, co-sponsored by the University of Notre Dame and featuring nearly 20 speakers Friday and Saturday, the pope said that an estimated 1 billion people still lack electricity and noted that access to energy is an essential resource for escaping poverty. But he warned that a failure to reduce the use of fossil fuels would lead to a ‘spiral of extreme climate changes due to a catastrophic rise in global temperatures, harsher environments and increased levels of poverty.’

The poor ‘suffer most from the ravages of global warming,’ he said, through water shortages and extreme weather which in turn drive mass migration, among other ways.
Pope Francis commended oil and gas companies for adopting policies that account for ‘assessment of climate risk’ and he encouraged the practice of environmentally sensitive ‘green finance’ investment strategies. But he warned that ‘markets and technology’ wouldn’t be sufficient to stop climate change, since our ‘current economic system thrives on ever-increasing extraction, consumption and waste.’

Earlier this year, BlackRock’s Mr. Fink in a letter urged chief executives at global companies to ‘make a positive contribution to society.’ The world’s largest asset manager has played a key role behind the scenes in insisting that companies take action to respond to climate change.

Pope Francis’ meeting with oil executives and investors comes almost exactly three years after the publication of his encyclical Laudato Si’, in which he called global warming a major threat to life on the planet and said it is mainly caused by human activity. In that document, which as an encyclical ranks among the highest levels of papal teaching, the pope blamed special interests for blocking policy responses and indicted the market economy for plundering the Earth at the expense of the poor and future generations.”

With the US President announcing his intention to leave the Paris Climate Change Accord, other global leaders, like Pope Francis are continuing the push. Ironically, Exxon Mobil’s shareholders voted (the day before Trump’s announcement to leave the Accord) to obligate the company leadership to inform them of what they are doing to address climate change. Fortunately, US cities, states and businesses are picking up the baton dropped by the President. The US has passed the tipping point on renewable energy, in spite of the President and his EPA head’s efforts.

Pope Francis should be commended for leading the charge. Taking care of the least of us has been a mantra of this leader. I recognize he is not perfect, but is concern for people and the environment is meritorious. And, unlike Messrs. Trump and Pruitt, the pope is a scientist, with a Masters in Chemistry and has worked as a chemist.

Threatening others is not a great sales strategy

The US President made an ill-advised move to declare Jerusalem Israel’s capitol saying the US would move its embassy there. The dilemma is it’s a lightning rod of a change, with Palestinians laying claim as well. Yet, after the UN Security Council voted 14 to 1 against this declaration with the US being outnumbered, Nikki Haley, the US ambassador to the UN, extended the President’s threat to cut funding to the countries who voted against the US.

Well, in a show of defiance, the entire UN body voted 128 to 9 against the US decision. Some small African nations, who heavily rely on US funding, acquiesced to the threat. Several countries abstained since the did not want to unsettle the sensitive President, but the sizable vote count should serve as an embarrassment to him. In sports and politics that would be called a rout.

It is my guess the President will remain defiant as it is not in his nature to admit a mistake, but one thing the President absolutely detests is being made to look bad. We should not forget his recorded comment that asked Enrique Peña Nieto, the Mexican President, to say openly Mexico would pay for the wall as “it was making him look bad” if they did not.

We should remind the President that his decisions and comments are what are making him look bad. When he announced that the US would be withdrawing from the Paris Climate Change Accord on June 1, it was the day after Exxon-Mobil shareholders voted against a management recommendation to require management to disclose what they are doing to battle climate change, the third fossil fuel based company to be so required in May following shareholder votes at PPL and Occidental Petroleum. The shareholders did what the President would not, go against the wishes of a petroleum company’s management.

To further illustrate US isolation on this Paris withdrawal, we are the lone county not to participate once the withdrawal becomes effective. We are also one of the biggest polluters, which seems fairly un-neighborly to thumb our nose at the rest of the world. Our country was also not invited to a climate change planning conference earlier this month in France. The US did have representation from several states, cities and business leaders who have picked up the baton the President dropped, but our government was not represented nor wanted.

My biggest fear going in with the bullying President was his not supporting climate change action. But, the greater fear is making the US a pariah in the world, someone who threatens other countries. If a country has a choice to deal with the US President or not, unless avoiding pain or accomplishing gain is compelling, the answer may be “no, thank you” more than it would have been before this President took office. Threats will not help in this cause, as illustrated at the UN.

China is benefitting from our retrenching position in the world. Xi Jinping is a more rational and trusted leader than the US President. Even domestic US leaders know not to trust the President at his word, including Republicans who suffer in silence. Lying and bullying are not admirable traits. Fortunately, leaders like Angela Merkel and Emmanuel Macron are picking up the mantle as true leaders of the Western world.

In closing, if there is a visual metaphor of the bullying US President, it occurred during a meeting with fellow NATO leaders in Brussels earlier this year. President Trump appeared to shove Prime Minister Milo Dukanovic of Montenegro aside in order to position himself front and center for photographers. A bull in a china shop, so to speak.