Royal Dutch Shell Plc on Tuesday became the first major oil and gas company to announce plans to leave a leading U.S. refining lobby due to disagreement on climate policies, citing its support for the goals of the Paris climate agreement.
In its first review of its association with 19 key industry groups, Shell said it had found "material misalignment" over climate policy with the American Fuel and Petrochemical Manufacturers (AFPM) and would quit the body in 2020.
The review is part of Shell's drive to increase transparency and show investors it is in line with the 2015 Paris climate agreement's goals to limit global warming by reducing carbon emissions to a net zero by the end of the century.
It is the latest sign of how investor pressure on oil companies, particularly in Europe, is leading to changes in their behavior around climate. Last year, Shell caved in to investor pressure over climate change, setting out plans to introduce industry-leading carbon emissions targets linked to executive pay.
Its chief executive, Ben van Beurden, has since repeatedly urged oil and gas producers to take action over climate and pollution, staking out a more radical position than the heads of other major oil companies.
"AFPM has not stated support for the goal of the Paris Agreement. Shell supports the goal of the Paris Agreement," the Anglo-Dutch company said in its decision.
Shell said it also disagreed with AFPM's opposition to a price on carbon and action on low-carbon technologies.
Shell and rivals Exxon and BP have in recent years left the American Legislative Exchange Council, a conservative political group, over its stance on climate change.
"We will also continue working on behalf of the refining and petrochemical industries to advance policies that ensure reliable and affordable access to fuels and petrochemicals while being responsible stewards of the environment," AFPM Chief Executive Chet Thompson said in a statement.
AFPM counts around 300 U.S. and international members including Exxon Mobil Corp., Chevron Corp., BP Plc and Total SA that operate 110 refineries and 229 petrochemical plants, according to its 2018 annual report.
