You are here

Shell

Fossil Futures: The Canada Pension Plan's Failure to Respect the 1.5-degree Celsius Limit

By James K. Rowe, Steph Glanzmann, Jessica Dempsey and Zoë Yunker - Canadian Centre for Policy Alternatives, November 2019

THE WORLD’S LARGEST PENSION FUNDS comprise over half of global investment capital. The Canada Pension Plan Investment Board (CPPIB) manages one of the country’s largest pools of investments, at $400 billion. How pension funds choose to invest has significant bearing on how we collectively address the climate emergency and the needed energy transition away from fossil fuels. In this report we ask: Is the CPPIB investing with the 1.5-degree Celsius limit on global average temperature rise in mind?

In April 2016, Canada was among 195 countries that signed the Paris Agreement, committing to “holding the increase in the global average temperature to well below 2 degrees Celsius above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 degrees Celsius.”

Our major finding is that the CPPIB is not investing with the 1.5-degree limit in mind. Within its public equities portfolio, it has over $4 billion invested in the top 200 publicly traded fossil fuel reserve holders (oil, gas and coal). To stay within 1.5 degrees, these companies can extract only 71.4 billion tonnes of carbon dioxide, yet the companies the CPPIB is invested in have 281 billion tonnes in reserve, meaning they have almost four times the carbon reserves that can be sold and ultimately burned to stay within 1.5 degrees. Since reserves are factored into current company valuations, this means the CPPIB has invested billions of dollars in companies whose financial worth depends on overshooting their carbon budget.

This is a moral and ecological failure. It is also a financial risk. As energy generation shifts away from fossil fuels, investors who do not respond could be left with “stranded assets”—investments that are no longer profitable. In its 2019 Financial System Review, the Bank of Canada included climate risk in its analysis for the first time. Canadian fossil fuel companies and their investors are especially exposed to stranded asset risk since the majority of oil produced in Canada is high-cost, carbon-intensive bitumen from the oil sands. And yet, the CPPIB remains exposed to the biggest oil sands majors, with over $1.2 billion invested in Canadian Natural Resources Ltd., Suncor Energy Inc. and Cenovus. Canadian pension beneficiaries may therefore be particularly vulnerable to stranded assets and the financial risks they pose.

Read the report (PDF).

Extractivism and Resistance in North Africa

By Hamza Hamouchene - Transnational Institute, October 2019

Extractivism as a mode of accumulation and appropriation in North Africa was structured through colonialism in the 19th century to respond to the demands of the metropolitan centres. This accumulation and appropriation pattern is based on commodification of nature and privatisation of natural resources, which resulted in serious environmental depredation. Accumulation by dispossession has reaffirmed the role of Northern African countries as exporters of nature and suppliers of natural resources – such as oil and gas- and primary commodities heavily dependent on water and land, such as agricultural commodities. This role entrenches North Africa’s subordinate insertion into the global capitalist economy, maintaining relations of imperialist domination and neo-colonial hierarchies.

The neo-colonial character of North African extractivism reflects the international division of labour and the international division of nature. It is revealed in largescale oil and gas extraction in Algeria and Tunisia; phosphate mining in Tunisia and Morocco; precious ore mining - silver, gold, and manganese - in Morocco; and water-intensive agribusiness farming paired with tourism in Morocco and Tunisia. This plays an important role in the ecological crisis in North Africa, which finds its clear expression in acute environmental degradation, land exhaustion and loss of soil fertility, water poverty, overexploitation of natural resources, pollution and disease, as well as effects of global warming such as desertification, recurrent heat waves, droughts and rising sea levels.

Concurrent with this dynamic of dispossession of land and resources, new forms of dependency and domination are created. The (re)-primarisation of the economy (the deepened reliance on the export of primary commodities) is often accompanied by a loss of food sovereignty as a rentier system reinforces food dependency by relying on food imports, as in the case of Algeria; and/or as land, water and other resources are increasingly mobilised in the service of export-led cash crop agribusiness, as in Tunisia and Morocco. Extractivism finds itself mired in serious tensions, which generates protests and resistance. This paper documents some of these tensions and struggles by analysing activist grassroots work, including the participation in alternative regional conferences and ‘International Solidarity Caravans’ where representative of grassroots organisations, social movements and peasant communities met and travelled together to sites of socio-environmental injustices, providing a space to strategise together and offer effective solidarity to their respective struggles.

The rural working poor and the unemployed in Northern Africa are the most impacted by the multidimensional crisis. Comprising small-scale farmers, near-landless rural workers, fisherfolks and the unemployed, the movements emerging in the five case studies presented here are resisting the looting of their subsoil resources, the despoliation of their lands, pervasive environmental destruction and the loss of livelihoods. The paper asks the following questions: should we see these protests, uprisings and movements as mainly environmental, or are these fundamentally anti-systemic – anti-capitalist, antiimperialist, decolonial and counter-hegemonic protests? Are these circumstantial episodes of resistance, or do they rather represent the latest development in the historical trajectory of class struggle against the latest capitalist offensive in North Africa? The paper presents an assessment of the nature of these movements which grapple with tensions and contradictions that face them.

Read the report (PDF).

Seattle Labor Unions Join Call Saying “Shell No”

By Tom Geiger - Labor Network for Sustainability, June 11, 2015

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

In a strong show of support for a better future, local labor unions have signed a letter to oppose the decision by the Port of Seattle Commission to permit the Shell Oil rig to have safe harbor in our Elliott Bay.

We recognize that other labor unions have a position of support for this Oil Rig here. We respect their decision, but we feel compelled to speak today given the stakes of climate change and the immediate and long term effects that this has on all people in the US and around the world. Shell brought this Rig to our shores; this has catapulted us to the frontlines of climate change and called to question the policies we make as a society to address the global crisis. Would we be taking this position at this moment without this Rig here in our local waters? Probably not. But we would be taking a position soon on Climate Change anyway and this has simply fast-forwarded that historic necessity.

Below is the statement and the list of labor organizations signed onto it:

Unions Say Shell No! 



The following labor unions, which represent over 60,000 workers in various industries across Washington State, declare our opposition to Royal Dutch Shell’s drilling in our Arctic waters and the use of our Port of Seattle’s Terminal 5 as their staging site. We stand alongside the many environmental, faith, social justice and retiree organizations, indigenous peoples and the thousands of individuals who oppose the drilling. We hope that adding our voice encourages others to join the Shell No! Movement. At the same time we declare our support for a strong climate policy at the state, regional and national level to reduce our global warming pollution and ensure that as we reduce this pollution we do so with equitable transition at its core.

Disillusioned Shell Whistleblower Runar Kjoersvik

By John Donovan - Royal Dutch Shell Plc.com, March 17, 2017

We have published a series of articles about Runar Kjoersvik, the Norwegian safety expert who in 2014 was dismissed by Shell on trumped-up charges.

Evidence was gathered in a covert surveillance operation as part of a vicious campaign conducted against him by Shell Norway senior management.

Runar was twice elected by his fellow workers, first as a SAFE Union representative and subsequently as the Main Safety Delegate.

His election was not a fluke. The employees who elected him at the Nyhamna Gas Plant in Norway knew Runar was fully qualified. He had attended several Norwegian law and HSE courses where he learnt how to protect legal rights according to rules, regulations and Norwegian Law. He also earned a diploma of strategic leadership from college university.

So in general, he had very skilled training and a long education that has led him to different managerial positions in several international companies giving him flawless feedback prior to his time at Shell.

He was, therefore, confident that his skills for managing the Main Safety Delegate position were first-rate and genuinely believed he could do a good job both for his co-workers and for A/S Norske Shell.

Senior plant managers congratulated Runar on achieving the Main Safety Delegate position and told him:

You will now be able to make an influence on Shell in a greater perspective, you will get to know the organisation, and make an influence through the work environment committee. This will be very positive for your future development and career.

Runar was also impressed by Shell’s claimed core values: honesty, integrity and respect for people, set within codes of conduct and ethics.

The future looked good. A responsible job and a decent employer.

The promising outlook did not last very long.

Capital Blight News #116

Compiled by x344543 - IWW Environmental Unionism Caucus, August 10, 2016

A supplement to Eco Unionist News:

Lead Stories:

The Man Behind the Curtain:

Green is the New Red:

Greenwashers:

Disaster Capitalism:

Other News:

For more green news, please visit our news feeds section on ecology.iww.org; Twitter #IWWEUC; Hashtags: #greenunionism #greensyndicalism #IWW. Please send suggested news items to include in this series to euc [at] iww.org.

Capital Blight News #115

Compiled by x344543 - IWW Environmental Unionism Caucus, August 2, 2016

A supplement to Eco Unionist News:

Lead Stories:

The Man Behind the Curtain:

Green is the New Red:

Greenwashers:

Disaster Capitalism:

Other News:

For more green news, please visit our news feeds section on ecology.iww.org; Twitter #IWWEUC; Hashtags: #greenunionism #greensyndicalism #IWW. Please send suggested news items to include in this series to euc [at] iww.org.

Capital Blight News #114

Compiled by x344543 - IWW Environmental Unionism Caucus, July 27, 2016

A supplement to Eco Unionist News:

Lead Stories:

The Man Behind the Curtain:

Green is the New Red:

Capital Blight News #113

Compiled by x344543 - IWW Environmental Unionism Caucus, July 19, 2016

A supplement to Eco Unionist News:

Lead Stories:

The Man Behind the Curtain:

Green is the New Red:

Capital Blight News #112

Compiled by x344543 - IWW Environmental Unionism Caucus, July 12, 2016

A supplement to Eco Unionist News:

Lead Stories:

The Man Behind the Curtain:

Green is the New Red:

Greenwashers:

Capital Blight News #106

Compiled by x344543 - IWW Environmental Unionism Caucus, May 31, 2016

A supplement to Eco Unionist News:

Lead Stories:

The Man Behind the Curtain:

Green is the New Red:

Pages

The Fine Print I:

Disclaimer: The views expressed on this site are not the official position of the IWW (or even the IWW’s EUC) unless otherwise indicated and do not necessarily represent the views of anyone but the author’s, nor should it be assumed that any of these authors automatically support the IWW or endorse any of its positions.

Further: the inclusion of a link on our site (other than the link to the main IWW site) does not imply endorsement by or an alliance with the IWW. These sites have been chosen by our members due to their perceived relevance to the IWW EUC and are included here for informational purposes only. If you have any suggestions or comments on any of the links included (or not included) above, please contact us.

The Fine Print II:

Fair Use Notice: The material on this site is provided for educational and informational purposes. It may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. It is being made available in an effort to advance the understanding of scientific, environmental, economic, social justice and human rights issues etc.

It is believed that this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have an interest in using the included information for research and educational purposes. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. The information on this site does not constitute legal or technical advice.