Although gas and oil prices dropped last year, the giant companies behind these fossil fuels continue to rake in billions of dollars. But instead of putting that money toward repairing some of the planetary damage they've caused, one oil conglomerate has decided — again — to instead stuff its investors' pockets.
What's happening?
Shell, the world's eighth-largest oil company by production, recorded $23.7 billion in profits in 2024, the Guardian reports. That number, although staggeringly large, was slightly lower than the $24 billion analysts predicted, and considerably lower than the $28.3 billion and nearly $40 billion Shell gained in 2023 and 2022, respectively.
The company opted to pay $22.5 billion of those profits back to its own investors, resisting calls to put more money toward renewable energy or other eco-friendly projects. In fact, Shell has now given investor buybacks of at least $3 billion for 13 consecutive quarters, according to the Guardian.
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No way 👎 Why does this matter?
A popular trend among high-polluting companies is greenwashing — attempting to push a public image that the company is actually environmentally friendly, no matter how much damage it actually does to the planet.
If you visit Shell's website, for example, there's a prominent section devoted to sustainability. But, as is the case with many oil companies, that information doesn't necessarily paint a complete picture.
In its 2024 earnings report, Shell touts that it spent over $2.5 billion on renewable energy solutions. But that's a fraction of the $18.3 billion it spent on its traditional, fossil fuel-led business. And Reuters reported the company has scaled back some of its goals to reduce carbon emissions and entirely scrapped other goals.
What's being done about oil greenwashing?
In 2023, a Shell ad campaign was banned in the United Kingdom for greenwashing. The Advertising Standards Authority ruled that the ads, which focused on Shell's renewable-energy efforts, did not properly disclose that the company primarily deals in fossil fuels.
But as oil companies continue to pollute Earth and heavily contribute to climate change, activists want them to get hit where it matters most — their wallets.
"It's high time governments held oil giants like Shell to account," Alice Harrison, head of fossil fuel campaigns at Global Witness, told the Guardian. "Rather than propping up the climate-wrecking fossil fuel industry, we need governments to make polluters pay for the damage they have already caused, and steer us towards a cleaner, greener future."
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