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Tom Cummins at the UK law firm Ashurst said: “This is arguably the most significant climate change-related judgment yet,” and Joana Setzer at the London School of Economics called it “mind-blowing, basically changing what Shell is at the core”. Scott Addison of the communications firm Infinite Global said: “Today’s ruling puts into stark relief just how high the commercial and reputational costs can get for inaction on climate change.”

Two other major oil companies, ConocoPhillips and Phillips 66, had already suffered investor revolts over climate inaction in recent weeks, but Shell’s court defeat set a new precedent, according to Roger Cox, a lawyer for Friends of the Earth Netherlands, which pursued the case along with 17,000 citizens. “This is a turning point in history,” he said. “It is the first time a judge has ordered a large polluting corporation to comply with the Paris climate agreement.”

Oil and gas majors have posted record losses and write-downs during the coronavirus pandemic. The International Energy Agency said earlier this month that if governments were serious about the climate crisis, there could be no new investments in oil, gas and coal from this year, contrasting with most companies’ plans for further exploration. Shell said it expected to appeal against what it described as a disappointing judgment, which could take two years, and Chevron’s chief executive, Mike Wirth, said the company could boost financial returns and cut carbon at same time.

Exxon’s chief executive, Darren Woods, said he had heard shareholders’ desire for change and that the company was well positioned to respond. Oil company climate plans have been criticised for not including all of their products, moving too slowly and being overly reliant on carbon offsets.