An environmental activist group, Global Witness has filed a complaint against Shell with the US securities regulator over allegations that the oil giant is misleading investors over its renewable energy spending plans as it aims for rapid expansion of its low-carbon and renewables business as part of efforts to reduce greenhouse gas emissions over the coming decades.
Global Witness said it was “concerned that Shell has materially misstated its financial commitment to renewable sources of energy by inflating” it’s spending in that area in Wednesday’s complaint to the Securities and Exchange Commission (SEC).
The British company said in February 2021 that it aims to spend between $2 billion and $3 billion a year on renewables and energy solutions.
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Its annual report for that year shows 12% of the company’s total spending, which amounted to $2.4 billion, was on renewables, carbon capture and offsets as well as hydrogen and retail gas and power sales.
However, Shell has rejected the accusations, saying it is “confident that its financial disclosures are fully compliant with all SEC and other reporting requirements”.
The complaint also requested that the SEC examine whether the inclusion of gas trading in Shell’s renewables and energy solutions division “constitutes a materially misleading misstatement”.
Shell accelerated its investments in renewables in 2022 with the $1.55 billion acquisition of India-based Sprng and an agreement to buy Danish renewable natural gas company Nature Energy for $2 billion.
Story was adapted from Reuters.
