Oil major Shell has been accused of misleading investors over its renewable energy spending plans in a complaint filed with the U.S. securities regulator by activist group Global Witness.
Like other leading European energy companies, Shell is aiming for rapid expansion of its low-carbon and renewables business as part of efforts to reduce greenhouse gas emissions over the coming decades.
In a Feb. 1 complaint to the Securities and Exchange Commission (SEC), Global Witness said it was "concerned that Shell has materially misstated its financial commitment to renewable sources of energy by inflating" its spending in that area.
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.
Shell's spending on the division, which includes renewables, carbon capture and offsets as well as hydrogen and retail gas and power sales, amounted to $2.4 billion in 2021, its annual report said. That equated to 12% of the company's total spending.
Global Witness said that its own calculations showed Shell spent only 1.5%, or $288 million, of its total spending of $20 billion on renewable energy sources such as wind and solar.
Shell 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.
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