The energy giant is following in the footsteps of its peers BP Plc and Repsol SA, which have already set similar targets. Shell’s move indicates that, despite the turmoil caused in the industry by COVID-19, major oil and gas companies aren’t abandoning the transition to cleaner energy. “Society’s expectations have shifted quickly in the debate around climate change. Shell now needs to go further with our own ambitions,” Chief Executive Officer Ben van Beurden said in a statement. “Even at this time of immediate challenge, we must also maintain the focus on the long term.”
Lower carbon products
Shell aims to have net-zero emissions from its own operations, categories known as scope one and two, by 2050. It also intends to reduce the carbon footprint of the energy products it sells to customers, scope three emissions, by around 30 per cent by 2035 and 65 per cent by 2050. To achieve this, the company will sell products with lower carbon intensity, such as renewable power, biofuels and hydrogen. The Anglo-Dutch oil major will work with industries such as airlines to help them decarbonize, and ultimately, will only do business with emission free companies, van Beurden said on an investor conference call.
Shell said it’s offering more low-carbon power, providing offsets and has even sold liquefied natural gas cargoes with net-zero emissions. But more needs to be done and at a faster pace to achieve the goals it has set, van Beurden said. It’s linking the pay of 16,500 employees to carbon-reduction targets, extending an existing plan that ties executive renumeration to cutting greenhouse gases by as much as 3 per cent by 2021.