Sustainability, Scope 3, and the 2021 Shell Ruling: What this means for procurement & the wider business

A landmark ruling has seen Royal Dutch Shell ordered to significantly step up its 2030 climate commitments and slash absolute emissions by 45% compared to 2019 levels – not just across its own operations, but across 'customers and suppliers of the group'. Find out what this momentous ruling means for procurement and the wider business.

Background of a forest with whitepaper overlaid, title: Sustainability, Scope 3, and the 2021 Shell Ruling

Likely to set a strong legal precedent for other energy companies and heavy corporate polluters, this mandate applies to not only the Shell group’s own operations, but significantly also ‘the suppliers and customers of the group’.

With this wording, it is clear Shell cannot meet the ruling’s lofty demands alone. To make an impact across all carbon emissions scopes, large businesses must immediately look towards forging new, productive partnerships with supplier stakeholders. Neglecting this key lever will mean missed targets, mounting legislative action, and inevitable reputation damage following a failure to protect people and planet.

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