* Shell to leave AFPM in 2020 over climate "misalignment"
* Shell releases first report on links with industry groups
* Investor welcomes report as "industry first"(Adds details, investor comment)
By Ron Bousso
LONDON, April 2 (Reuters) - Royal Dutch Shell onTuesday became the first major oil and gas company to announceplans to leave a leading U.S. refining lobby due to disagreementon climate policies.
In its first review of its association with 19 key industrygroups, the company said it had found "material misalignment"over climate policy with the American Fuel & PetrochemicalManufacturers (AFPM) and would quit the body in 2020.
The review is part of Shell's drive to increase transparencyand show investors it is in line with the 2015 Paris climateagreement's goals to limit global warming by reducing carbonemissions to a net zero by the end of the century.
It is also the latest sign of how investor pressure on oilcompanies is leading to changes in their behaviour aroundclimate.
"AFPM has not stated support for the goal of the ParisAgreement. Shell supports the goal of the Paris Agreement," theAnglo-Dutch company said in its decision.
AFPM did not immediately respond to a request for comment.
Shell said it also disagreed with AFPM's opposition to aprice on carbon and action on low-carbon technologies.
The review was welcomed by Adam Matthews, director of ethicsand engagement for the Church of England Pensions Board, whichinvests in Shell and led discussions with the company over itsclimate policy.
"This is an industry first," Matthews said.
"With this review Shell have set the benchmark for bestpractice on corporate climate lobbying not just within oil andgas but across all industries. The challenge now is for othersto follow suit."
AFPM counts dozens of U.S. and international membersincluding Exxon Mobil, Chevron, BP andTotal that operate 110 refineries and 229petrochemical plants, its 2018 annual report says.
Shell also found "some" misalignment with nine other tradeassociations, including the American Petroleum Institute. Itwill continue to engage with those groups over climate policiesand monitor their alignment, Shell said.
Last year, Shell caved in to investor pressure over climatechange, setting out plans to introduce industry-leading carbonemissions targets linked to executive pay.
Its chief executive, Ben van Beurden, has since repeatedlyurged oil and gas producers to take action over climate andpollution.
"The need for urgent action in response to climate changehas become ever more obvious since the signing of the ParisAgreement in 2015. As a result, society's expectations in thisarea have changed, and Shell's views have also evolved," vanBeurden said in the report.
"We must be prepared to openly voice our concerns where wefind misalignment with an industry association onclimate-related policy. In cases of material misalignment, weshould also be prepared to walk away."
(Reporting by Ron Bousso; Editing by Dale Hudson and JaneMerriman)
