Shell: In an energy transition update released in its annual report, the UK’s largest oil and gas company, Shell, has softened its climate commitments, particularly about net carbon intensity. The company stated that because of a decrease in energy sales, net carbon intensity would be reduced by 15-20% by 2030 compared to 2016 levels. This represents a dilution from its previous objective of 20 per cent. Additionally, it lowered the goal of reducing emissions from customers using Shell oil products.
Due to uncertainty surrounding the rate of change in the energy transition, Shell has decided to abandon its aim to reduce net carbon intensity by 45 per cent by 2035. It still aims for a 100% decrease by 2050, though.
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Green activists have denounced Shell’s most recent position, claiming it goes against the 2015 Paris Climate Agreement, which aims to keep average global temperature increases to 1.5 degrees Celsius over pre-industrial levels.
The shareholder advocacy group Follow This, which advocates for environmental causes, declared that Shell was placing its bets “on the failure of the Paris climate agreement” and for the company’s continued reliance on fossil fuels. To ensure reliable and reasonably priced energy supplies, Shell claimed that it aimed for a gradual but well-balanced shift away from fossil fuels and toward low-carbon energy options.
Shell still committed to cutting emissions from its operations (Scope 1 and 2) in half by 2030 as compared to 2016. The business announced plans to invest $10–15 billion in low-carbon energy by the end of 2025.
