The world's major oil and gas companies are entering the age of climate change and vehicle electrification, but they're doing so kicking and screaming. As my dear, departed mother would say, they're acting like spoiled brats. But their shareholders and the courts of law are having none of that lackluster attitude. They're putting their collective foot down and punishing these companies. Today, let's look at two examples of the tail wagging the dog. Big Oil Under Fire Royal Dutch Shell (NYSE: RDS-A) is one of the largest oil and gas producers in the world. It has exploration and production operations for crude oil, natural gas liquids and natural gas. Back in April 2019, seven climate groups, including Friends of the Earth Netherlands and Greenpeace, sued the company on behalf of thousands of Dutch citizens. The lawsuit alleged that Shell is a major threat to human rights. The lawsuit further stated that Shell continues to invest billions of dollars in fossil fuel production and refining in an era that's seeing a rapid move away from fossil fuels. Dutch courts heard the lawsuit this past May. And the court's decision was heard around the world by every oil and gas company. In short, the court ordered Shell to reduce its carbon dioxide emissions by 45% by 2030. Although Shell previously set targets to cut the carbon intensity of its operations by 20% by 2030, the courts said that this wasn't good enough. Besides, the courts remarked, Shell's climate policy was "not concrete and [was] full of conditions." Shell is planning to appeal the court's order. Its CEO is rejecting what he calls "absolute reduction targets." He believes that reducing emissions at this point in time can be made possible only by shrinking the company's business. And from Shell's point of view, reducing the size of its operations isn't a great business plan. I can see the CEO's point. But oil and gas companies are late to the climate change party. In Shell's case, shareholder activists convinced Dutch courts that the company wasn't taking climate change seriously enough. It's the first time that environmental groups have successfully forced an oil major to change its climate strategy and cut its emissions. Shell is facing other climate lawsuits too, including several here in the U.S. The decision by Dutch courts could provide plenty of ammunition for them. But Shell isn't the only company being scolded... | 
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