Shell vows to halve scope 1 and 2 emissions by 2030
Oil major Shell has set a new target to reduce its Scope 1 and 2 emissions by 50 per cent compared to 2016 levels by 2030, regardless of the outcome of its appeal against the Dutch Court’s ruling.
Shell announced an absolute emissions reduction target of 50 per cent by 2030, compared to 2016 levels on a net basis on Thursday. This new target covers all scope 1 and 2 emissions under the company’s operational control.
It is another strategic goal on the firm’s path to becoming a net-zero emissions energy business by 2050. Therefore, this announcement complements its existing climate change goals.
Shell stated that this additional target forms part of its ‘Powering Progress’ strategy along with its goals to generate shareholder value, respect nature and power lives and follows ongoing stakeholder engagement since Shell’s annual general meeting (AGM).
On Wednesday, 26 May 2021, the District Court in The Hague delivered its ruling in the climate change case filed against Shell in 2019 by Dutch environmental organisation Milieudefensie, other NGOs, and a group of private individuals.
The firm decided to appeal this and believes the new target is an important step in meeting the challenge of the Dutch Court’s ruling for its scope 1 and 2 emissions, which Shell expects to meet by 2030. The company’s 2022 business plan will reflect this new target. Shell is committed to delivering this, regardless of whether the company wins or loses its appeal against the ruling.
The firm is also committed to bringing forward its target to eliminate routine gas flaring from its upstream operated assets from 2030 to 2025.
Shell’s ‘Powering Progress’ strategy, announced in February 2021, provides the capital expenditure and financial return profile outlook for each of its businesses and the group. The company is adamant that there is no material change expected in these profiles, as the strategy provides the levers necessary to achieve the latest targets.
In company-related news, Shell announced the appointments of Wael Sawan as Integrated Gas and Renewable and Energy Solutions (R&ES) Director and Zoë Yujnovich as Upstream Director earlier this month. The appointments became effective on 25 October 2021.