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.
Recommended Reading
Energy A&D Transactions from the Week of Jan. 11, 2023
2023-01-11 - Here’s a snapshot of recent energy deals including Northern Oil & Gas (NOG) closed on an upsized acquisition of working interests in Midland-Petro D.C. Partners LLC and Phillips 66 $3.8 billion deal with DCP Midstream LP.
Energy A&D Transactions from the Week of Jan. 25, 2023
2023-01-25 - Here’s a snapshot of recent energy deals including Chesapeake Energy’s $1.4 billion deal to sell Eagle Ford Shale acreage in the Brazos Valley region to WildFire Energy, and Matador Resource’s $1.6 billion bolt-on acquisition in the northern Delaware Basin.
Energy A&D Transactions from the Week of Jan. 4, 2023
2023-01-04 - Here’s a snapshot of recent energy deals including Marathon's $3 billion Eagle Ford acquisition and Targa Resources Corp. deal to buy the remaining stake in the Grand Prix NGL Pipeline.
Energy A&D Transactions from the Week of Feb. 1, 2023
2023-02-01 - Here’s a snapshot of recent energy deals including Diamondback Energy completing its $1.55 billion deal to acquire Midland Basin acreage and E&P Arena Energy LLC closing its acquisition of Cox Operating LLC's interests in the Eugene Island 330 and South Marsh 128 oil blocks.
Energy A&D Transactions from the Week of March 22, 2023
2023-03-22 - Here’s a snapshot of recent energy deals, including Canadian Pacific Railway’s $27 billion acquisition of Kansas City Southern, the only single-line crude-by-rail railroad connecting Canada, the U.S. and Mexico.