Five questions about Shell’s move to the UK – Zembla

Oil and gas group Shell wants to become fully British on paper and will move its head office to the UK. Five questions about the shell step.

According to Shell, simplifying the structure should ensure the company is able to operate faster and more flexibly. The group wants to play a “leadership role” in the energy transition.

Shell has been officially a British company since 2005, but its head office, and therefore its tax headquarters, is in The Hague. Investors have been complaining for some time about the current structure of various stocks. It is not necessary to pay dividend tax on UK shares, but dividend tax must be paid on Dutch shares. According to Shell CEO Ben van Beurden, there has been talk of simplifying the structure since the merger of Royal Dutch Petroleum and Shell Transport and Trading in 2005. For many years, Shell assumed that the dividend tax would also be abolished in the Netherlands, as it is in the Kingdom. United States, which would allow the merger of British and Dutch stocks without major problems.

That plan failed in The Hague, and food group Unilever subsequently decided to become fully British on paper. Information and data supplier RELX has also previously ‘relocated’ to the UK. Shell still has to present the move to its shareholders, which will happen on December 10.

With the upcoming move to the UK, the oil and gas company will also lose its royal title, Royal Dutch. Shell CEO Ben van Beurden says the company is no longer claiming this status due to the relocation of its head office. Van Beurden describes the title loss as “particularly painful and unfortunate”. Shell will propose the name change to shareholders at a meeting scheduled for December 10, with Royal Dutch disappearing from the name.

Shell confirms that this move will have little impact on jobs in the Netherlands, except for a small number of employees who will move to London with CEO Van Beurden and CFO Jessica Uhl. Shell has about 8,500 employees in the Netherlands.

The transition also affects sustainability investment decisions and plans, says CEO Van Beurden. For example, many of Shell’s sustainability plans start in the Rheinmond and Moerdijk region. The same may apply to Groningen, where Shell is focusing on hydrogen. “We cannot win in Europe without the Netherlands,” the CEO said.

The government was unpleasantly surprised by the decision of the oil and gas group Shell to move its headquarters to the United Kingdom. The Cabinet was informed on Sunday that it “deeply regrets” Shell’s move. Outgoing Economic Affairs Minister Steve Blok said: “We are in discussions with Shell senior management about the consequences of this plan on jobs, crucial investment decisions and sustainability. These are very important matters.”

It remains unclear what the multinational’s departure means for the Treasury. It emerged two years ago that Shell does not pay profits tax in the Netherlands. In 2018, amid the debate over eliminating the dividend tax, follow the money Search in km Shell Netherlands delivers. Shell’s head office in The Hague has been portrayed as a cash cow for the Netherlands, but Shell’s argument is impure according to the FTM. An analysis of other taxes paid by Shell shows that Nigeria, Iraq and Oman in particular make money from Shell. Shell explores for oil in these countries.

According to Melodydefense, there are no consequences to the lawsuit: it will remain before the Dutch courts anyway. “In our view, this will have no consequences for future climate situations at home or abroad,” says energy and environmental activist Per de Rijk. “Companies around the world have a responsibility to respect human rights and prevent dangerous climate change.” Climate justice in Milieudefensie.

Milieudefensie sued Shell to force the company to significantly reduce its greenhouse gas emissions. At the end of May, the court in The Hague decided that Shell’s climate plans were insufficient and that the company must immediately do more to reduce its emissions. By 2030, these emissions should fall by 45 percent compared to 2019.

Shell must also make efforts to reduce emissions from users. The company will appeal this ruling, but must take the necessary steps to have it heard. Following the ruling, Shell promised to boost its sustainability strategy, stating in October that it wanted to cut emissions by 50% by 2030.

Royal Shell must have flawless business operations in order to be allowed to hold the Royal designation. In its Code of Conduct, Shell says it respects human rights and is constantly looking for ways to reduce environmental damage caused by its activities. Zembla wants to know how this relates to the situation in the Niger Delta. The world’s largest oil spill occurred there in decades. How is Shell acting royally in Nigeria?