Campaigning group Global Witness has submitted a complaint to the US financial regulator accusing Shell of adding gas-related investments to its spending on renewables to inflate its overall investment in clean sources of energy.
The letter of complaint to the US Securities and Exchange Commission (SEC), the US agency charged with protecting investors, claims that Shell overstated its investments in renewable energy by including gas-related activities, such as integrated power, gas marketing and trading, hydrogen, and carbon capture and storage.
It states that, according to Shell’s most recent annual report, the company directed 12% of its capital expenditure to Renewables and Energy Solutions in 2021.
However, Global Witness’ analysis of figures reported by Shell found the company spent just 1.5% total capex on developing renewable sources of energy such as wind and solar.
The letter continues: “We therefore ask the Commission to examine whether including gas in RES without reporting how much spending Shell directs to gas has caused Shell to omit material facts necessary to its investors’ clear understanding of Shell’s purported energy transition.
“In addition, we ask the Commission to further examine whether Shell’s reported capex on RES may include so much gas spending that labelling the segment ‘Renewables and Energy Solutions’ constitutes a materially misleading misstatement.”
A Shell spokesperson said: “Shell is confident that its financial disclosures are fully compliant with all SEC and other reporting requirements.”