Court of Appeal of The Hague

Oral arguments of milieudefensie et al part 1

in the matter of:

1. Vereniging Milieudefensie having its registered office in Amsterdam, the Netherlands;

2. Stichting Greenpeace Nederland having its registered office in Amsterdam, the Netherlands;

3. Landelijke Vereniging tot Behoud van de Waddenzee having its registered office in Harlingen, the Netherlands

4. Stichting ter bevordering van de Fossielvrij-beweging having its registered office in Amsterdam, the Netherlands;

5. Stichting Both ENDS having its registered office in Amsterdam, the Netherlands;

6. Jongeren Milieu Actief having its registered office in Amsterdam, the Netherlands;

   Respondents, original claimants,

   Collectively called: “Milieudefensie et al./Friends of the Earth et al.” (hereinafter: Milieudefensie et al.)

   Legal counsel:

   mr. R.H.J. Cox, mr. M.J. Reij, mr. A.J.M. van Diem

   versus:

   Shell plc

   having its registered office in London, United Kingdom

   Appellant, originally the defendant

   Legal counsel:

   mr. D.F. Lunsingh Scheurleer, mr. T. Drenth

   and:

   Stichting Milieu en Mens

   having its registered office in Zwolle, the Netherlands

   Joined party on the part of Shell plc

   Legal counsel:

   mr. Dr D.J.B. Bosscher

Your Honours,

Introduction: the democratic state based on the rule of law and the role of the courts

1. All of us present in this courtroom have the good fortune to be living in a democratic state based on the rule of law, a deliberately chosen and cherished form of cohabitation that provides balance, resilience, safety and stability. A cohabitation form in which everyone is equal before the law and in which there is respect for fundamental rights and in which respect for everyone’s inalienable human rights forms the basis of our social contract.
2. In a democratic state based on the rule of law, democracy and the rule of law are inseparably entwined, forming two sides of the same coin. One cannot exist without the other.
3. The democratic nature of a democratic state based on the rule of law is seen in such things as the freedom of choice that citizens have to determine how the country is to be run and by whom. This basis connects politics, government and citizens with each other and makes them dependent on each other.
4. A properly working democracy makes open and trustworthy relationships crucial, both between citizens and government and between citizens themselves. But this is not all. A properly functioning democracy needs the business community, in its relationships with the government and citizens, to play an equally trustworthy role.
5. Government, citizens and companies each have their own role in society. This requires trust on all parts, as well as the confidence to trust. It also requires that the trust that others have given is not put to shame, that the trust shown is respected and rewarded.
6. The importance of a trustworthy business community has become much clearer, particularly in the past decades. Since the 1980s the business community has gained a lot of trust from society throughout the world. This led to us entering a new era in terms of the relationship between national governments on the one part and the multinational business community on the other in the 1980s. An era that has been characterised by deregulation and privatisation, a greater role for market forces and a government that has increasingly stepped back. An era of increasing globalisation of markets, of fixation on shareholder value and of large mergers and acquisitions in the international business community. Because of all this, multinational companies have become bigger and more influential in the past few decades and this has led to their influence and impact on global society becoming greater.