Geenpeace activists set up a billboard during a protest outside Shell headquarters amid the company's profits announcement on July 27, 2023 in London, England.

 (Photo: Handout/Chris J Ratcliffe for Greenpeace via Getty Images)

 

Shell Slammed for 'Planet-Wrecking' Profits as Temperatures Soar to New Heights

"We cannot let countries and communities that have done the least to cause climate change pay the price for Shell's greed," one green group said.

A little more than a week after Earth endured its four hottest days on record, fossil fuel giant Shell announced higher second-quarter profits than expected at $6.3 billion.

The company also announced a new share buyback program worth $3.5 billion through September, CNBC reported.

"It is shameful that Shell, as one of the world's largest and most profitable fossil fuel companies, continues to reap billions in profits off the back of its planet-wrecking oil and gas operations," Chiara Liguori, the senior climate justice policy adviser at Oxfam Great Britain, said in response to the news. "At a time when the company should be taking strong action to cut emissions it is instead weakening its climate targets and continues to invest in new oil and gas projects, in favor of short-term shareholder returns."

"That the profits of two companies alone can outweigh the GDP of six countries already being battered by the climate crisis lays bare the shameful inequity at the heart of the fossil fuel economy."

Shell's announcement covers the months of April through June 2024. While the company made 19% less than it did during the first three months of the year, it made $400 million more than London Stock Exchange Group predicted for the quarter, according to CNBC.

A Global Witness analysis concluded that Shell paid $23 billion to shareholders since June 2023. Every month in that same 13-month period saw temperatures averaging 1.5°C or more above preindustrial levels—the more ambitious temperature goal enshrined in the Paris agreement. Each month in that stretch was also the hottest of its kind on record.

"Wildfires raging across the Arctic Circle and temperature records breaking by the day should be a wake-up call," Greenpeace U.K. said on social media. "But Shell continues to bank billions from digging up climate-wrecking fossil fuels."

Shell's announcement caps a month in which high global temperatures fueled a number of extreme weather events. July began with Hurricane Beryl forming as the earliest ever Category 4 and Category 5 Atlantic hurricane on record, before it devastated several Caribbean islands. Last week, a fast-moving wildfire forced more than 20,000 people to flee historic Jasper in the Canadian Rockies before it destroyed nearly a third of the town. The same week, Typhoon Gaemi dumped more than 1,000 millimeters of rain on Taiwan in less than 24 hours.

"As people flee wildfires in Canada, floods in Taiwan, and rebuild in the wake of Storm Beryl, Shell is doubling down on fossil fuels, U-turning on renewables, and profiting to the tune of billions from an intensifying climate crisis," Alice Harrison, head of Fossil Fuel Campaigns at Global Witness, said in a statement.

Shell's announcement also comes days after BP posted $2.8 billion in second-quarter profits.

Global Witness calculated that BP and Shell's second-quarter profits combined would be enough to pay one-tenth of the $100 billion in climate-related loss and damage money that developing nations have requested by 2030.

At the same time, the two oil giants' profits over the past year—£31.2 billion ($39.8 billion)—exceed the £27.7 ($35.3) billion combined gross domestic products of the six nations most impacted by Beryl: Barbados, the Cayman Islands, Dominica, Jamaica, St. Vincent and the Grenadines, and Grenada, according to Global Justice Now.

"That the profits of two companies alone can outweigh the GDP of six countries already being battered by the climate crisis lays bare the shameful inequity at the heart of the fossil fuel economy," Izzie McIntosh, climate campaigner at Global Justice Now, said in a statement. "People in the Caribbean devastated by the impacts of Hurricane Beryl are left to pick up the pieces, while rich shareholders and fossil fuel CEOs get to rake in the profits, removed from the chaos they've played a leading role in creating."

The climate justice organizations called for governments to take action to stop fossil fuel companies before they can further destabilize Earth's climate.

"We need accountability and a government that isn't afraid to stand up to them—it can start by introducing measures to make these polluting megacorporations pay up for the climate damage they've caused in the Global South, as well as a fossil fuel phaseout," McIntosh continued.

Harrison agreed: "We can't keep letting polluters off the hook. Governments should be holding fossil fuel majors to account for the crisis they created and forcing them to pay for the damage they are inflicting on millions of families around the world."

Oxfam G.B. and Greenpeace U.K. recommended policies for the United Kingdom—where Shell and BP are headquartered—specifically.

"As global temperatures and the huge costs of tackling the climate crisis continue to rise, the U.K. government has a chance to ensure those most responsible for contributing to global greenhouse gas emissions, like Shell, are held to account by taxing them more," Liguori said. "This could help raise the vital funds needed to ensure a fair switch to clean, renewable energy in the U.K. as well as fulfilling our international commitments to support communities worst-hit by climate change to adapt and recover."

Greenpeace concluded: "We cannot let countries and communities that have done the least to cause climate change pay the price for Shell's greed. The new Labour government must prove it is different to its predecessor by reining in the fossil fuel giants and imposing bold new taxes on polluters to force them to pay their climate debts at home and abroad."

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