Shell has won an appeal against a Dutch court ruling which had ordered the oil and gas giant to sharply reduce its greenhouse gas emissions.

The case was brought against Shell in 2021 by Milieudefensie, other NGOs and a group of private individuals.

The Court of Appeal at The Hague has overturned the ruling, and while stating that Shell has have a “special responsibility” to cut its emissions, this would not be achieved by imposing a specific legal goal

Shell also reiterated its stance that a court ruling would not reduce overall customer demand for products such as petrol and diesel for cars, or for gas to heat and power homes and businesses.

The oil company stated this would “do little” to reduce emissions, as customers would take their business elsewhere.

“We are pleased with the court’s decision, which we believe is the right one for the global energy transition, the Netherlands and our company,” said Shell CEO, Wael Sawan.

“Our target to become a net-zero emissions energy business by 2050 remains at the heart of Shell’s strategy and is transforming our business. This includes continuing our work to halve emissions from our operations by 2030. We are making good progress in our strategy to deliver more value with less emissions.”

Investment director at AJ Bell, Russ Mould, commented that Shell’s successful appeal was “loaded with symbolism”.

“When the original ruling was handed down in 2021, the focus was on the ESG agenda and Shell was already committed to the transition even if it wasn’t shy in criticising the court’s decision,” Mould said.

“The impact on oil and gas markets of Russia’s invasion of Ukraine has shifted priorities towards energy security and under CEO Wael Sawan there has been a hardnosed focus on profit today over transition tomorrow.

“The issue hasn’t gone away entirely, given the climate groups which brought the original case are likely to bring their own appeal to the Netherlands’ Supreme Court, which perhaps explains why Shell shares haven’t budged much today.”

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