"What the BG merger told us about Shell’s approach to climate risk"

[A]t COP21 in Paris last December, an international agreement was reached by governments across the world to limit temperature rises to a maximum of 2 degrees, with an ambition for 1.5 [degrees]... The achievement of this target will require fossil fuel companies like Shell to fundamentally change their business model...To find out how seriously this challenge was being taken by Shell, my colleague Friederike and I set off to The Hague, where the company was holding an Extraordinary General Meeting to discuss the potential BG merger with its shareholders...On numerous occasions during the meeting, the company indicated that the BG merger was a very positive move from a climate perspective, given the role of natural gas in the transition to a low-carbon economy...So, is Shell taking the 2 degree limit seriously? Whilst the board may have plenty of green spiel to hand, it isn’t clear how this translates into strategic decision making...If oil and gas companies and their investors don't begin to take the 2 degree transition seriously, we will fail to prevent the worst consequences of climate change...