Bookmark and Share

Developed Market Companies face Climate Change pressure from Empowered Environmental Activists

0 Comment

With the COVID pandemic dying down in most developed nations, climate change has once again come to the forefront of the leader agenda. Besides political leaders, environmental activists and the judiciary are putting pressure on companies that are not doing enough to move the needle on fighting climate change. Recently, a court in the Netherlands has ordered Shell to accelerate its carbon reductions by 2030 which means that one of the biggest oil and gas companies faces a direct hit on its business model of producing fossil fuels. While Shell has made some moves in recent years by investing in EVs, hydrogen, alternative fuels, and renewable power, its huge size means that it is a very small part of its overall portfolio.

Climate Change

To reduce carbon emissions for a company of Shell’s size will mean massive investments which may not be easy in such a short time frame even as other organizations around the world are making investments in the same areas. This will lead to supply chain pressure and price escalation. Besides Shell, Exxon Mobil which is the world’s largest integrated oil and gas has also seen three of its board members populated by activists which is probably the first such case in the USA. These activists will also push the company to make major changes with respect to the green transition.

Also, read Why India’s Coal Sector Continues to Resist the Green Energy Transition

Even in Australia, Greenpeace has brought massive pressure on power utility AGL calling it one of the biggest liabilities in energy transition for not doing enough to close down its coal power plants which account for 85% of its overall capacity. Greenpeace as it does usually does has started a high-pressure campaign against AGL leading to the company filing a lawsuit. But given the current environment, it was probably the wrong thing to do as AGL lost the lawsuit and got bad publicity. The company has planned to demerge into a generation company as well as a trading/power supply company in order to further its green credentials. But this has not won it any plaudits as Greenpeace wants it to mothball its coal plants by 2030, rather than 2048 as the company plans to do. With most developed countries setting a plant to close down all their fossil fuel (majorly coal) plants by 2030 or 2035, AGL seems to be in an uncomfortably unique spot not committing to closing down coal plants early. While most developed country organizations have a plan in place for the energy transition, just putting some headlines and publicity won’t do as activists, courts, and now even politicians are putting huge pressure to accelerate climate action.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

No Responses so far | Have Your Say!