Archives for: August 2008
Investigations Brief
While Shell’s ads feature pristine wildernesses, happy fish, and flowering smoke stacks, Shell continues to poison the people that live near its operations, rapidly expand the most destructive oil extraction operations, and increase its greenhouse gas emissions. Meanwhile, Shell is also trying to influence the climate policy debate, with targeted policy recommendations and thousands of dollars in lobby funding.
Background
Royal Dutch Shell is a multinational oil company with British and Dutch origins. It is one of the largest private sector energy corporations in the world, with its main business being exploration for and production, distribution and marketing of oil and gas . With 104,000 employees in more than 110 countries, the company claims to play a key role in helping to meet the world’s gherowing demand for energy in economically, environmentally and socially responsible ways [1]. Last year Shell made over $31B in profits, which amounts to $85M in profits every day [2].
Campaign Details
Shell oil spends millions promoting an image of environmental responsibility and innovation. Shell ads talk about cleaning the air and water, and use environmental images to promote its products. The company is exaggerating its environmental claims, while diverting attention away from its dirty and destructive core business.
The Outcome
Shell continues to spend millions on green advertising messages, while also continuing to devastate the plant and lobby Congress and the White House.
GM is stilling pushing ahead with its “gas-friendly to gas-free” campaign, while fighting as hard as ever against fuel economy increases behind the scenes.
As an example, this summer the National Highway Traffic Safety Administration (NHTSA) proposed a rule that would require automakers to increase fuel economy of cars to 36 mpg by 2015. This is the first in a string of rules that will get us to the target Congress set of 35 mpg on average for all vehicles (both cars and trucks) by 2020. In response, the auto industry’s lobby group, the Auto Alliance, released a report stating that these fuel economy improvements would jeopardize jobs, cost consumers billions and raise the cost of trucks by $4,000 or more.
Despite all their threats and whining, the truth is that US automakers, including GM, have been cutting jobs for years in large part because they failed to respond to consumer demand for more efficient vehicles.
Let's look at the numbers: Since 2000, GM has cut 40% of its work force, and recently announced it will cut another 15% or 5,000 jobs this year [1]. The company's overall sales so far this year have decreased by 18% compared to last year, with light trucks decreasing by over 24% [2]. The company announced that it is shutting down 4 more SUV and truck plants and is considering selling off its Hummer division. On top of that, the company reported a net loss of $15.5 billion last quarter, reduced employee and retiree benefits, and suspended dividends [3].
It's pure greenwash to brag about "gas-friendly" vehicles in public, then cry and make empty threats about them in Washington.
[1] E&E News (subscription required)
[2] Auto News Data Center (accessed on August 1, 2008, subscription required)
[3] GM website