Shell Sets Bolder Emissions Goal Even As Virus Hits Oil

Royal Dutch Shell Plc plans to eliminate all net emissions from its own operations and the bulk of greenhouse gases from fuel it sells to customers by 2050.

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 the coronavirus, 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 on Thursday. “Even at this time of immediate challenge, we must also maintain the focus on the long term.”

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% by 2035 and 65% by 2050. To achieve this, the company will sell products with lower carbon intensity, such as renewable power, biofuels and hydrogen.

Sector Pivot

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 Buerden 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% by 2021.

Press Release Courtesy of Bloomberg.

Image Caption: Color coded pump handles at a gas station, operated by Royal Dutch Shell Plc, in Kemerovo, Russia. Photographer: Andrey Rudakov/Bloomberg.

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