Shareholders over solutions: How big industry favours payouts over the energy transition

In the framework of the Clean Industrial Deal, energy-intensive companies are set to receive billion-Euro-subsidies to maintain their competitiveness and contribute a clean energy transition. A new investigation by Friends of the Earth Europe and SOMO however, reveals that contrary to their claims, major European companies in key energy transition sectors already have substantial access to capital. The problem is not a lack but a misallocation of resources: these companies are funneling the bulk of their profits – over 75% –  into shareholder payouts instead of investing in making their businesses fit for the green transition.

Key outcomes

• From 2010 to 2023, European firms in key energy transition sectors generated €2.1 trillion in net profit and distributed €1.6 trillion to shareholders—a staggering 75.3% of their total net profits (and about 40% of Germany’s GDP, for comparison);
• Despite maintaining access to capital and even with increasing debt levels until 2020, investment rates have sharply declined from 18.4% in 2010 to 14.9% in 2023;
• Financial assets have increased from 8.0 to 11.0% of total assets, demonstrating that capital availability is given;
• Interest payment decreased from 1.6 % of turnover in 2010 to 1.2% in 2023, as conditions to have access to capital improved significantly on the back of favourable monetary policies;
• Corporations such as Shell, Total Energies and Mercedes-Benz Group AG, which supported the Antwerp Declaration distributed 97% (Shell), 86% (Total Energies) and 40% (Mercedes-Benz Group AG) of their profits to shareholders.
• Major players like Eni, Glencore, and BP provided shareholder payouts that exceeded their net profits.

Full report