The 2021 lawsuit against Shell, the UK-based oil and gas giant, marked a turning point. Although Shell won the appeal, for now, it set a precedent, suggesting that businesses can be held accountable for their environmental impact.
The court ruled that targeting a single company would be ineffective, as competitors would step in to take advantage of the opportunity. However, the verdict also said that Shell, like other companies, has an obligation to “limit its CO₂ emissions.”
Under the leadership of CEO Wael Sawan, Shell is balancing financial returns with gradual environmental progress. For the third quarter, the company reported adjusted earnings of $6 billion. However, the company also reported a slowdown in its investments in renewable energy, with spending on renewables and energy solutions falling to just 8% of its total budget in Q3 report. Despite this, Shell maintained broader investments in biofuels and electric vehicle charging infrastructure. The company remains committed to spending between $10bn and $15 billion on low-carbon solutions between 2023 and 2025.
Shell is now focusing on liquefied natural gas (LNG) as a cleaner energy source, while continuing significant investments in oil and gas. This dual approach—shifting focus to oil and gas while maintaining investments in low-carbon technologies—reflects a pragmatic strategy for sustainability. Shell is prioritizing areas with high returns while selectively investing in energy transition technologies. However, critics argue that its reduced spending on renewables could limit its long-term environmental impact.
In contrast, TotalEnergies reported a three-year low in earnings, with a third-quarter profit of $4.1 billion. According to its Q3 report, the profit from its integrated power sector, including renewables, fell by 4% compared to the previous year. Despite these setbacks, Chairman and CEO Patrick Pouyanné announced plans to evaluate the company’s six European refineries, with a goal of converting the weakest into biorefineries that produce renewable fuels.
At the COP29 summit, both TotalEnergies and Shell announced their commitment to supporting the UN’s Sustainable Development Goal 7 (SDG7), which aims to ensure access to affordable, reliable, sustainable, and modern energy for all.
Pouyanné said, “We are committed to investing $400 million in Liquefied Petroleum Gas facilities to develop clean cooking solutions in Africa and India, helping 100 million people access healthier, more sustainable, and more reliable energy.”
In collaboration with BP and Equinor, TotalEnergies and Shell also plan to invest $500 million in efforts to improve energy access in Sub-Saharan Africa, Southeast Asia, and the South.
Reflecting on the joint investment, Shell’s CEO Wael Sawan said, “We want to support accelerated progress toward universal energy access, as we believe it has the power to transform lives. This joint investment will help to do that. By working together to overcome key energy access challenges, we can create sustained impact and drive real change.”
Despite these policy shifts, Shell appears to be more committed to renewable energy compared to ExxonMobil, the American multinational oil and gas company.
At the COP29 summit, Exxon’s leadership seemed less aligned with the energy transition. CEO Darren Woods, during an interview on Bloomberg Green Zero podcast, said, “The policies that have been pursued to date are very narrowly focused on limiting the supply of traditional sources and trying to drive more expensive alternatives that, frankly, isn’t accomplishing the overall objective.”
Exxon, which has grown through acquisitions of smaller oil producers, reported $8.6 billion in earnings for the third quarter, with 4.6 million barrels of oil equivalent produced. Rather than making a major transition toward renewable energy, Exxon is focusing heavily on carbon capture and storage (CCS) technologies to gradullay reduce its carbon footprint. With its fifth CCS agreement in place, the company aims to transport and store up to 1.2 million metric tons of CO2 per year. Exxon has committed to achieving net-zero operational emissions (Scope 1 and 2) by 2050.
The evolving strategies of Shell, TotalEnergies, and Exxon illustrate the diverse paths these energy giants are taking to balance profitability and sustainability. While each company’s progress varies, their growing investments in low-carbon technologies and energy access highlight a shifting energy landscape. The need for accountability and collaborative climate action is becoming more apparent than ever.