Shell Targets Scope 3 Emissions in New Strategy

Oil and gas major Shell has updated its energy transition strategy for the first time since 2021, setting an additional decarbonisation target for transport and pledging to invest in low-carbon energy. To drive the decarbonisation of the transport sector, Shell now plans to reduce customer emissions from the use of its oil products by between 15-20% compared to 2021. Additionally, Shell will be investing US$10-15 billion by the end of 2025 in low-carbon energy solutions, such as electric vehicle charging, biofuels, renewable power and carbon capture and storage. In 2023, the company invested US$5.6 billion in low-carbon solutions, Shell said, which was 23% of its total capital spending. Shell has said it will continue to work towards its previous target to halve its operational emissions by 2030 compared to 2016 on a net basis, claiming it achieved more than 60% of this goal by the end of 2023. “Our focus on performance, discipline and simplification is driving clear choices about where we can have the greatest impact through the energy transition and create the most value for our investors and customers,” said Wael Sawan, Shell’s CEO. “We believe this focus makes it more, not less, likely that we will achieve our climate targets. By providing the different kinds of energy the world needs, we believe we are the investment case and the partner of choice through the energy transition.”

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