What kind of climate change lawsuits have been filed against Shell in the United States?
In the United States, Shell has been named alongside other energy companies in climate-related lawsuits. These cases generally seek compensation or other action related to alleged harms. This page explains the claims being made, Shell's response, and frequently asked questions about climate litigation in the United States.
Key takeaways
- Shell recognizes the urgent need to address climate change and the transformation required across the global energy system.
- Shell's views on climate change have been publicly available for decades through reports, publications, and other communications.
- We believe addressing climate change requires action from governments, businesses, consumers and communities, supported by policy, innovation, investment and technology.
- Companies like Shell have an important role to play in the energy transition. Shell does not believe lawsuits against individual companies are an effective way to advance the energy transition or reduce global emissions. We believe progress requires action across society, supported by effective policy, innovation, investment and technology.
- Shell does not believe lawsuits against individual companies are an effective way to advance a secure, reliable energy system or reduce global emissions. They do not enable the global co-operation required to change supply and demand for energy, as well as the infrastructure supporting the use of energy.
Climate-related lawsuits in the US: what you need to know
Climate-related lawsuits in the United States have been filed primarily by state and local governments. These lawsuits seek compensation or other actions for alleged climate-related harms and claims that consumers were misled about fossil fuels and climate change.
Some of the state and local governments bringing these climate lawsuits have hired law firms that receive a portion of any financial compensation and may be backed by outside litigation funders whose identities are not publicly disclosed. Shell believes transparency around funding sources is important for public trust in the legal process.
Where cases have been brought against Shell, we are defending our position. We fully recognize the need to address climate change and the balanced transition required across the global energy system. We also believe that companies like Shell have an important role to play. We disagree, however, with the means of achieving progress.
Piecemeal litigation aimed at individual companies is not an effective way to reduce global emissions. Court cases cannot address the underlying demand for affordable, reliable and secure energy, nor can they deliver the large-scale policy frameworks or technological advances required to achieve a secure supply of energy and lower global emissions.
What have claimants in the US alleged?
The plaintiffs are seeking extensive monetary compensation. Many of the cases allege violations of state consumer protection laws (e.g. false advertising), as well as claims alleging nuisance, deception, and failure to warn. Plaintiffs claim that industry has known since the 1960s of the relationship between fossil fuel products and climate change and either directly, or indirectly through trade associations, concealed or understated the science while continuing to promote the use of fossil fuels.
What is Shell’s response?
Shell strongly refutes the allegations.
We agree climate change is a significant challenge that requires action now across society. Shell supports a balanced energy transition, one that maintains secure energy supplies as the world moves to affordable, low-carbon energy. We are reducing emissions from our operations and helping customers reduce theirs.
While courts have an important role in resolving legal disputes, Shell does not believe the courtroom is the right place to address climate change. Instead, a combination of effective government policy, innovation, and coordinated action across society is the better way to deliver energy solutions and drive progress.
Shell’s position on climate change has been publicly documented for more than 30 years, including in publications such as our Annual Reports and Sustainability Reports, public statements and policy engagements. In 1991, Shell released a documentary called “Climate of Concern”, which discussed climate-related risks and was available to the public.
Frequently asked questions
Does Shell recognize climate change?
Does Shell recognize climate change?
Yes. Shell recognizes climate change as a significant challenge and supports efforts to reduce emissions while helping meet the world's energy needs.
What is climate litigation?
What is climate litigation?
Climate litigation refers to lawsuits in which plaintiffs seek compensation or other relief from energy companies related to the impacts from climate change.
Why is Shell being sued over climate change?
Why is Shell being sued over climate change?
The climate-related lawsuits brought against Shell generally contend that Shell, along with other energy companies, should be held responsible for climate-related impacts attributed to the global energy system involving many producers, billions of consumers and decades of cumulative emissions.
Why does Shell disagree with these lawsuits?
Why does Shell disagree with these lawsuits?
Shell believes climate change requires coordinated action across society. Lawsuits against individual companies focus on individual energy producers but do not address the demand for energy that is part of the global energy system. Reducing emissions at scale requires changes in both energy supply and demand, supported by effective policy, innovation, investment and collaboration.
Did Shell publicly discuss climate change before these lawsuits were filed?
Did Shell publicly discuss climate change before these lawsuits were filed?
Yes. Shell has publicly discussed climate-related issues for decades through annual reports, sustainability reports, public statements and other communications. In 1991, Shell released the documentary Climate of Concern.
What is retroactive liability legislation?
What is retroactive liability legislation?
Some states have proposed or enacted legislation that seeks to recover certain climate-related costs from a subset of energy producers and refiners based on historical greenhouse gas emissions. These measures are sometimes referred to as climate superfund laws.
How is retroactive liability legislation related to climate litigation?
How is retroactive liability legislation related to climate litigation?
Climate retroactive liability, or climate superfund laws, and climate litigation are different approaches that raise similar questions about responsibility for climate-related costs. While climate litigation proceeds through the courts, climate superfund laws establish legislative frameworks for allocating certain costs. These laws are being challenged on constitutional and other grounds.
How does Shell believe climate change should be addressed?
How does Shell believe climate change should be addressed?
Shell believes progress requires coordinated action across society — including governments, businesses and consumers. Effective policy, technological innovation, infrastructure investment, and collaboration are essential to reduce emissions and support a secure, reliable energy system.
What have the courts ruled to date?
What have the courts ruled to date?
Courts in the U.S. have dismissed several of these lawsuits, including cases brought against Shell, on a variety of legal grounds.