Global energy giant, Shell Plc, has restated commitment to safety and energy transition that will ensure net zero emissions in its operations globally.
Shell’s Chief Executive Officer, Ben van Beurden, made commitment in the company’s 2021 Sustainability Report, 2022 Industry Associations Climate Review Update and 2021 Payments to Governments Report published yesterday.
Beurden said the world needs urgent action to achieve net-zero emissions and the more ambitious goal of the Paris Agreement: to limit the rise in average global temperature to 1.5° Celsius, and Shell’s global climate and energy transition policy positions align with this.
He said: “Shell’s target is to become a net-zero emissions energy business by 2050, in step with society’s progress in achieving the goal of the Paris Agreement. We are transforming our business to meet our target, providing more low-carbon energy, and working with our customers and others as they make changes, sector by sector. This includes supporting government policies that will help the world to achieve net-zero emissions by 2050.
“We have updated our global policy positions on climate and energy transition to be in line with our Powering Progress strategy. By advocating these positions as we transform our business, we believe we are supporting the energy transition and the Paris Agreement.
“Our policy positions on climate and energy transition serve as a global framework for Shell’s advocacy with governments, international organisations, industry associations, coalitions, and other stakeholders globally, regionally and within countries. They are an important part of our drive to provide greater transparency around our climate advocacy, and to meet expectations of institutional investors, non-governmental organisations and wider society.
“We will also use these policy positions as the basis of future assessments of our memberships of industry associations.
“Our policy positions reflect our belief that the world needs to rapidly decarbonise each of the key sectors that contribute to global emissions. This will take ambitious action at all levels of government, and by industry and consumers around the world. Our positions also reflect the need to ensure that the economic and social benefits of the energy transition are inclusive and distributed in a fair way.
“Where there are clear, commercial pathways to decarbonisation, we are calling for policies that drive urgent investment by the public and private sectors. For example, we advocate government policies that accelerate renewable power generation, and end unabated coal-fired power generation by 2040 where feasible.
“In sectors that are harder to decarbonise, such as aviation, shipping, heavy industry and commercial road transport, governments need to help drive the transition to low- and zero-carbon energy. In these sectors we are calling for policies that create commercial markets for fuels such as sustainable aviation fuel, hydrogen and advanced biofuels.
“We recognise that the pace of change will be different around the world. For example, we believe that in the majority of developed countries, with the right policy frameworks in place, the transition to the widespread adoption of zero-emission vehicles, and the phase out of sales of new internal combustion engine vehicles, should happen in the 2030s.
“Early 2022 has brought new uncertainties and challenges, and, like so many others, I am horrified by the war in Ukraine. I feel deeply for those suffering no matter where they are. All of us at Shell are concerned about our staff and contractors affected by the conflict and we are doing everything we can to help them. Shell is helping in the relief effort and working with governments to find ways to secure energy supplies for Europe and other markets.
“We also took decisive actions in support of global economic measures against Russia and you can read about them in the media release.
“As the world faces these new challenges, and even as the COVID-19 pandemic continues, it must not lose sight of the importance of taking action on climate change.
“Our Powering Progress strategy, which we launched in 2021, sets out how Shell can play a leading role in helping the world to reduce its carbon emissions. At the heart of our strategy lies our own target to become a net-zero emissions energy business by 2050, in step with society’s progress in achieving the Paris climate goals.
“In this, our 25th Sustainability Report, we share how we are working towards our Powering Progress goals.”
Safety is essential
The Shell Chief stated that one critical area in which we simply must do better is safety, which is essential to our strategy. We have made progress on improving the safety of our operations since the early 2000s.
“We have not been able to eliminate all fatal incidents involving Shell employees and contractors. The number of safety incidents increased in 2021. I am saddened by the deaths of eight of our contractor colleagues in Pakistan, Indonesia and Nigeria, and the death of a government security agent in Nigeria. We must strive continuously to improve our efforts to keep people safe.”
Accelerating towards net zero
“In 2021, we took an important step towards becoming a net-zero emissions business with a new target to reduce our absolute emissions from our operations (Scope 1 and Scope 2) by 50% by 2030, compared with 2016 levels on a net basis. By the end of 2021, Shell had reduced Scope 1 and 2 emissions from our operations, and from the energy we buy to run our operations, by 18% from 83 million tonnes in 2016 to 68 million tonnes.
“We also achieved our first short-term target of a 2-3% reduction in net carbon intensity (NCI) by the end of 2021. Shell’s NCI in 2021 was 77 gCO2e/MJ which was a 2.5% reduction from the 2016 reference year.
“We are also working with our customers and across sectors to help them find their own pathways to achieve net-zero emissions. This will help grow demand for new low-carbon products.
“But Powering Progress goes beyond achieving our net-zero targets. In 2021, we started incorporating new ambitions within our business to respect the environment and to power people’s lives.
“We also continued to support the UN Global Compact’s corporate governance principles on human rights, environmental protection, anti-corruption and better labour practices.
Respecting nature
“In this report, we have set out our commitments on biodiversity, water, and on helping to create a circular economy and reduce waste.
“It is also of the utmost importance that we continue to work to prevent oil spills. In 2021, we reduced the number of operational spills of more than 100 kilograms by 40%, compared with 2020. However, in Nigeria, spills caused by oil theft and sabotage of pipelines continued amid heightened security risks. We are dealing with these challenges and the impact they have on the environment, on local communities and on our business.”
Contributing to countries and communities
“We are working with our suppliers to find ways to reduce greenhouse gas emissions across our supply chains. In 2021, we rolled out a new digital platform which enables our suppliers to track performance on emissions reduction, share best practice and exchange emissions data with their own supply chains.
“The supply of affordable, reliable and sustainable energy is crucial for raising living standards and for addressing other global challenges, including inequality. In 2021, we continued to develop social investment programmes to improve access to energy in Ethiopia, Mozambique, Pakistan and South Africa.”
