Milieudefensie et al v Royal Dutch Shell

Milieudefensie et al v Royal Dutch Shell was a case heard by

the district court of The Hague in the Netherlands in 2021
Milieudefensie et al v Royal
related to efforts by multinational corporations to curtail carbon Dutch Shell
dioxide emissions. In May 2021, the Hague ordered that Royal
Dutch Shell must reduce its global carbon emissions from its
2019 levels by 45% by 2030; it is considered the first major
climate change litigation ruling against a corporation.

Contents
Court District court of The Hague
Background
Decided 26 May 2021
Trial
ECLI ECLI:NL:RBDHA:2021:5337
See also
Transcript(s) in Dutch (https://uitspraken.
References
rechtspraak.nl/inziendocum
ent?id=ECLI:NL:RBDHA:20
21:5337); in English (http
Background
s://uitspraken.rechtspraak.n
l/inziendocument?id=ECLI:
Following the global adoption of the Paris Agreement in 2016,
which aimed to limit the rise in the global average temperature NL:RBDHA:2021:5339)
to under 2°C through various milestones at 2030 and beyond, Case opinions
large corporations operating in signatory countries began The policy, policy intentions and ambitions
evaluating if they could alter operations to meet the targets of
of RDS for the Shell group are
the Agreement. The British-Dutch multinational Royal Dutch
Shell (hereafter Shell) is one of the largest oil and gas incompatible with RDS’ reduction
companies in the world; its headquarters are in the obligation. The claimed order to comply
Netherlands, a signatory to the Agreement. Shell is the ninth- with that obligation must be allowed. The
largest corporate contributor to global pollution, producing order will be declared provisionally
about 1% of global emissions. [1][2] As the Agreement was enforceable.
being developed, Shell evaluated its businesses to determine Court membership
what it could do to address emissions, but had stated in 2014
that it believed that the Paris targets were unattainable and did Judge(s) Larisa Alwin, Irene Kroft
not plan to change its business model away from oil and sitting and Michiel Harmsen
gas.[1] Following the signing of the Agreement, Shell issued a
statement that it would address its emissions, releasing a plan that called for reductions of its carbon dioxide
emissions by 30% by 2035, compared to 2016 levels, and by 65% by 2050.[1]

Environmental activists saw this plan as far slower than the requirements set out by the Paris Agreement.
Seven environmental foundations — Milieudefensie, Greenpeace, Fossielvrij, Waddenvereniging, Both
ENDS, Jongeren Milieu Actief, and ActionAid — and 17,379 individual claimants in the Netherlands filed a
class-action lawsuit against Shell in April 2019, arguing that Shell could change its business model to invest
more in renewable energy, and reach an emissions reduction target of 45% by 2030.[1][3] By failing to change
to this alternative model, the suit argued, Shell had failed to uphold the unwritten standard of care laid down in
Book 6 Section 162 of the Burgerlijk Wetboek (Dutch Civil Code) as well as articles 2 and 8 of the European
Convention on Human Rights.[1][4][5] Shell stated in response to the lawsuit that it was doing its part to
address climate change, and that "What will accelerate the energy transition is effective policy, investment in
technology and changing customer behaviour. None of which will be achieved with this court action.
Addressing a challenge this big requires a collaborative and global approach."[1]

Trial
Hearings at the district court at The Hague were held in December 2020. The plaintiffs were required under
Dutch law to demonstrate that a viable alternative business model existed for Shell to achieve the suggested
45% reduction goal, and had used the recent transformation of Danish company Ørsted from fossil fuels to
renewables as a viable example.[1] During the trial, Shell issued a pledge in February 2021 to be net-zero by
2050.[6] Plaintiffs considered Shell's pledge to be inadequate as the company would fail to meet the Paris
Agreement goals.[7]

The court issued its decision on 26 May 2021. In its ruling, the court found Shell's current sustainability policy
to be insufficiently "concrete", and that its emissions were greater than that of most countries.[7] Due to these
factors, the court ordered that Shell must reduce its global emissions by 45% by 2030 compared to 2019 levels;
the reduction targets include emissions from its suppliers and buyers.[2] The court declared the order
provisionally enforceable, meaning that the order has immediate effect, even if one of the parties appeals the
ruling.[8][9][7]

The case was considered a landmark ruling in environmental law related to climate change: while previous
lawsuits against governments have prevailed for improving emissions, this was considered the first major suit
to hold a corporation to the tenets of the Paris Agreement.[7] While the decision only has jurisdiction in the
Netherlands,[10] it is expected to set a precedent for other environmental lawsuits against other large
companies with high emissions that have not taken sufficient steps to reduce their emissions.[2][11][12][8][9] The
impact of the court's decision was considered by legal experts to be strengthened due to its reliance on human
rights standards and international measures on climate change.[13][7][2]

Shell has stated that it plans to appeal the ruling.[2][14]

See also
State of the Netherlands v. Urgenda Foundation

References
1. Boffey, Daniel (30 November 2020). "Shell in court over claims it hampered fossil fuels phase-
out" (https://www.theguardian.com/business/2020/nov/30/shell-in-court-over-claims-it-hampere
d-fossil-fuels-phase-out). The Guardian. Archived (https://web.archive.org/web/2021051715215
1/https://www.theguardian.com/business/2020/nov/30/shell-in-court-over-claims-it-hampered-fo
ssil-fuels-phase-out) from the original on 17 May 2021. Retrieved 26 May 2021.
2. Boffey, Daniel (26 May 2021). "Court orders Royal Dutch Shell to cut carbon emissions by 45%
by 2030" (https://www.theguardian.com/business/2021/may/26/court-orders-royal-dutch-shell-to
-cut-carbon-emissions-by-45-by-2030). The Guardian. Archived (https://web.archive.org/web/20
210526142843/https://www.theguardian.com/business/2021/may/26/court-orders-royal-dutch-s
hell-to-cut-carbon-emissions-by-45-by-2030) from the original on 26 May 2021. Retrieved
26 May 2021.
 3. NOS.nl Milieudefensie dagvaardt Shell in rechtszaak om uitstoot (https://nos.nl/artikel/2279155
-milieudefensie-dagvaardt-shell-in-rechtszaak-om-uitstoot) Archived (https://web.archive.org/w
eb/20210527105022/https://nos.nl/artikel/2279155-milieudefensie-dagvaardt-shell-in-rechtszaa
k-om-uitstoot) 27 May 2021 at the Wayback Machine
4. Burgerlijk Wetboek - Book 6 Section 162 (https://wetten.overheid.nl/jci1.3:c:BWBR0005289&bo
ek=6&titeldeel=3&afdeling=1&artikel=162&z=2017-09-01&g=2017-09-01) Archived (https://we
b.archive.org/web/20210527105025/https://wetten.overheid.nl/BWBR0005289/2017-09-01/) 27
May 2021 at the Wayback Machine
5. cliffordchance.com - Climate change actions against corporations: Milieudefensie et al. v.
Royal Dutch Shell plc. (https://www.cliffordchance.com/insights/resources/blogs/business-and-
human-rights-insights/climate-change-actions-against-corporations-milieudefensie-et-al-v-royal
-dutch-shell-plc.html) Archived (https://web.archive.org/web/20210119150046/https://www.cliffo
rdchance.com/insights/resources/blogs/business-and-human-rights-insights/climate-change-ac
tions-against-corporations-milieudefensie-et-al-v-royal-dutch-shell-plc.html) 19 January 2021 at
the Wayback Machine
6. Ambrose, Jillian (11 February 2021). "Shell to expand gas business despite pledge to speed
up net zero carbon drive" (https://www.theguardian.com/business/2021/feb/11/shell-grow-gas-b
usiness-energy-net-zero-carbon). The Guardian. Archived (https://web.archive.org/web/202105
24053451/https://www.theguardian.com/business/2021/feb/11/shell-grow-gas-business-energy
-net-zero-carbon) from the original on 24 May 2021. Retrieved 26 May 2021.
7. Brian, Stuart (26 May 2021). "Shell ordered to reduce CO2 emissions in watershed ruling" (http
s://www.dw.com/en/shell-ordered-to-reduce-co2-emissions-in-watershedruling/a-57669931).
Deutsche Welle. Archived (https://web.archive.org/web/20210526141409/https://www.dw.com/
en/shell-ordered-to-reduce-co2-emissions-in-watershedruling/a-57669931) from the original on
26 May 2021. Retrieved 26 May 2021.
8. Verdict (https://uitspraken.rechtspraak.nl/inziendocument?id=ECLI:NL:RBDHA:2021:5337)
Archived (https://web.archive.org/web/20210526142144/https://uitspraken.rechtspraak.nl/inzien
document?id=ECLI%3ANL%3ARBDHA%3A2021%3A5337) 26 May 2021 at the Wayback
Machine (in Dutch)
9. Verdict (https://uitspraken.rechtspraak.nl/inziendocument?id=ECLI:NL:RBDHA:2021:5339)
Archived (https://web.archive.org/web/20210526150306/https://uitspraken.rechtspraak.nl/inzien
document?id=ECLI:NL:RBDHA:2021:5339) 26 May 2021 at the Wayback Machine (in English)
10. "Shell: Netherlands court orders oil giant to cut emissions" (https://www.bbc.com/news/world-e
urope-57257982). BBC. 26 May 2021. Archived (https://web.archive.org/web/2021052613541
4/https://www.bbc.com/news/world-europe-57257982) from the original on 26 May 2021.
Retrieved 26 May 2021.
11. MacFarlene, Sarah (26 May 2021). "Shell ordered by Dutch Court to cut carbon emissions" (htt
ps://www.wsj.com/articles/shell-ordered-by-dutch-court-to-cut-carbon-emissions-
11622038961). The Wall Street Journal. Archived (https://web.archive.org/web/202105261429
44/https://www.wsj.com/articles/shell-ordered-by-dutch-court-to-cut-carbon-emissions-1162203
8961) from the original on 26 May 2021. Retrieved 26 May 2021.
12. Corder, Mike (26 May 2021). "Court orders Royal Dutch Shell to cut net emissions by 45%" (htt
ps://www.washingtonpost.com/business/court-orders-royal-dutch-shell-to-cut-carbon-emission
s/2021/05/26/46fd0c5e-be28-11eb-922a-c40c9774bc48_story.html). Associated Press.
Archived (https://web.archive.org/web/20210526200505/https://www.washingtonpost.com/busi
ness/court-orders-royal-dutch-shell-to-cut-carbon-emissions/2021/05/26/46fd0c5e-be28-11eb-9
22a-c40c9774bc48_story.html) from the original on 26 May 2021. Retrieved 26 May 2021 – via
The Washington Post.
13. Zindy, Hanna (26 May 2021). "Court orders Shell to slash CO2 emissions in landmark climate
ruling" (https://www.cnn.com/2021/05/26/business/shell-court-case-climate-change/index.html).
CNN. Archived (https://web.archive.org/web/20210526140120/https://www.cnn.com/2021/05/2
6/business/shell-court-case-climate-change/index.html) from the original on 26 May 2021.
Retrieved 26 May 2021.
14. "Reactie Shell op uitspraak klimaatzaak / Shell response to climate case verdict" (https://www.s
hell.nl/media/persberichten/media-releases-2021/reactie-shell-op-uitspraak-klimaatzaak.html).
shell.com. Royal Dutch Shell. 26 May 2021. Archived (https://web.archive.org/web/202105271
04738/https://www.shell.nl/media/persberichten/media-releases-2021/reactie-shell-op-uitspraa
k-klimaatzaak.html) from the original on 27 May 2021. Retrieved 26 May 2021. "We will
continue to focus on these efforts and fully expect to appeal today’s disappointing court
decision"

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