- Global energy giant Shell has committed to achieving net zero emissions by 2050 or sooner.
- The announcement is the result of engagement with investors as part of Climate Action 100+, led by the Church of England Pension Board and Robeco.
Steps include an ambition to go net zero in terms of the emissions from the manufacture of all its products by 2050 and ‘accelerating progress’ to limiting global average temperature rises to 1.5°C in line with the goals of the Paris Agreement on Climate Change – this means reducing the carbon footprint of the energy products Shell sells to its customers by around 65% by 2050 and by around 30% by 2035.
Luke Parker, vice president, corporate analysis, at Wood Mackenzie, comments “This is an evolution of the net carbon footprint ambition that Shell unveiled in November 2017. It has effectively accelerated its ambition to reduce the net carbon footprint of the energy products it sells (Scope 1, 2 and 3) by 65% by 2050, instead of 50%.
“The fact that Shell announced the move now underlines its commitment to make the shift from Big Oil to Big Energy. Coronavirus and its fall-out doesn’t change that … if anything, it adds greater weight to the argument. Despite immediate cash flow constraints, Shell (and its peers) will emerge from this period more determined to make the shift,” added Parker.
Ben van Beurden, Chief Executive Officer of Royal Dutch Shell, said: “As well as protecting our staff and customers in this difficult time, we are also taking immediate steps to ensure the financial strength and resilience of our business.
“The combination of steeply falling oil demand and rapidly increasing supply may be unique but Shell has weathered market volatility many times in the past.
“In these very tough conditions, I am very proud of our staff and contractors across the world for maintaining their focus on safe and reliable operations while also ensuring their own health and welfare and that of their families, communities and our customers.”
Author: Bryan Groenendaal