Shell has Admitted Climate Change Could Affect the Company's Bottom Line

Shell has finally admitted climate change could dramatically impact the company’s bottom line — and soon.

The company’s annual report 2018 acknowledges the impact of divestment campaign for the first time and should be seen as a clear warning to investors that the age of fossil fuels is coming to an end, according to campaigners with 350.org.

Iceberg_Glacier_Climate-change_Pexles-Jaymantri

The report - just out - identifies divestment and climate litigation as material risks to the company’s profits. It says:

“Rising climate change concerns have led and could lead to additional legal and/or regulatory measures which could result in project delays or cancellations, a decrease in demand for fossil fuels, potential litigation and additional compliance obligations.”

The report specifically identifies fossil fuel divestment campaign as a material risk. “Additionally, some groups are pressuring certain investors to divest their investments in fossil fuel companies. If this were to continue, it could have a material adverse effect on the price of our securities and our ability to access equity capital markets.”

It also highlights the risk of climate litigation efforts. “Further, in some countries, governments and regulators have filed lawsuits seeking to hold fossil fuel companies liable for costs associated with climate change. While we believe these lawsuits to be without merit, losing any of these lawsuits could have a material adverse effect on our earnings, cash flows and financial condition.”

Read more: Desmog

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