. Meets short term goals
In its newly-published Energy Transition Progress Report 2021, Shell Plc has announced that it met its short-term net carbon intensity reduction target last year and it is now working towards a 50% reduction by 2030.
The report details the company’s progress over the past year, and will be put to shareholders for an advisory vote at the Annual General Meeting, the first of its kind.
This advisory vote is designed to be that vehicle. It does not shield or abdicate the Board’s or management’s legal obligations under the UK Companies Act.
The company has also simplified its share structure and moved its headquarters to the UK from the Netherlands.
In a statement issued on Wednesday, Shell’s Chief Executive Officer, Ben van Beurden, said: “In a time of great uncertainty, it is vital that our long-term energy transition strategy remains on track. This report shows the strong progress we have made towards our target to become a net-zero emissions energy business by 2050.”
This progress includes critical investment decisions in the production of low-carbon fuels, solar and wind power, and hydrogen, and significant changes to Shell’s Upstream and refinery portfolios.
This progress includes critical investment decisions in the production of low-carbon fuels, solar and wind power, and hydrogen, and significant changes to Shell’s Upstream and refinery portfolios.
Shell set a target last year to reduce absolute emissions from its operations and the energy it uses to run them by 50% by 2030, compared with 2016 on a net basis.
According to the new report, Shell had made a reduction of 18% by the end of 2021 – and it also achieved its short-term target to reduce the net carbon intensity of the energy products it sells by 2-3%.
“We are helping our customers to identify and use low- and zero-carbon alternatives to the energy products they have used for many decades,” said Andrew Mackenzie, Shell Chair. “We see great business opportunities for Shell in the fast-growing low- and zero-carbon markets where we are well positioned to provide the different products and solutions our customers need.”
In 2021, Shell said it continued to work with customers across sectors, from aviation to marine and road freight, forming more than 50 collaborations with other leading companies.
The report shows Shell’s progress against concrete climate goals. Last year, the company set a new target to reduce absolute emissions from its operations and the energy it uses to run them by 50% by 2030, compared with 2016 on a net basis. By the end of 2021, Shell had made a reduction of 18%.
Shell also achieved its short-term target to reduce the net carbon intensity of the energy products it sells by 2-3% by the end of 2021, compared with 2016 as well. The company is now working towards a 9-12% reduction in net carbon intensity by 2024, and a 20% reduction by 2030, both compared with 2016.
Our strategy, as outlined in this report, is designed to minimise those risks while enhancing our ability to profitably lead as the world transitions to an energy system that is aligned with the goal of the Paris Agreement.
Energy transition strategy
Shell’s energy transition strategy was put to an advisory shareholder vote at the Annual General Meeting in 2021 where it secured around 89% of the vote. This year, Shell is asking shareholders to vote on its progress, as it will do every year until 2050.
The strategy is to provide more electricity, while also shifting the power system to renewable energy; develop alternative zero- and low-carbon solutions to traditional fuels. These include biofuels, hydrogen, and other zero- and low-carbon gases; and address any remaining emissions with decarbonisation solutions such as carbon capture and storage and nature-based solutions.
In his message to the transition strategy report, Chair, Chad Holiday, said: “While the energy transition brings risks to the company, it also brings opportunities for us to prosper and to build on our positive contribution to society.
“Our strategy, as outlined in this report, is designed to minimise those risks while enhancing our ability to profitably lead as the world transitions to an energy system that is aligned with the goal of the Paris Agreement.
“It is important for shareholders to have a clear understanding of the company’s strategy as we work together to meet the goal of Paris. The Board and management also believe it is important for all shareholders to have a vehicle to express their views on whether our strategy is reasonable in the current environment.”
