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Shell Sets Ambitious Targets On Climate Change, The Strongest In The Oil Sector


04/16/2020


Shell Sets Ambitious Targets On Climate Change, The Strongest In The Oil Sector
The broadest and the most ambitious plan yet in the global oil and gas sector to fight climate change were set on Thursday by Royal Dutch Shell. The oil and gas giant set a target to transform to carbon neutral with greenhouse gas emissions set to touch net zero by 2050. 
 
With this latest announcement, the Anglo-Dutch company has now become leader in the sector in terms of climate change goal which surpassed the targets set by its rivals, including BP and Italy's Eni.
 
“Society's expectations have shifted quickly in the debate around climate change,” the company’s Chief Executive Officer Ben van Beurden said in a statement. “Shell now needs to go further with our own ambitions, which is why we aim to be a net-zero emissions energy business by 2050 or sooner.”
 
Shell has set plans of completely offsetting the carbon emissions arising out of its own oil and gas production by 2050 which the company described as being the Scope 1 and Scope 2 emissions.
 
Those targeted reduction in greenhouse gas emissions however did not include those emissions that is generated from the wider use of its petroleum products as fuels that it sells to its customers such as jet fuel and gasoline. It is known as Scope 3.
 
Saying that the manner in which customers use its products cannot be controlled by it, Shell said that its ambitious climate change fighting plan did not include Scope 3 emissions.
 
However, it will "pivot towards serving businesses and sectors that by 2050 are also net-zero emissions," which means its Scope 3 emissions should be offset, the company said.
 
The ambitious plans to fight climate change of Shell are different from those of its rivals because its targets are applicable to all of the products it produces, refines and buys from other companies.
 
Shell also announced its plans to reduce by about 65 per cent by 2050 its total carbon emission footprint generated from the energy products that it sells through an intensity-based measure, with an intermediate target of reducing the same by 35 per cent by 2035.
 
Earlier the company had aimed to bring down its net carbon footprint by about 50 per cent by 2050 and by 20 per cent by 2035.
 
The company has however refrained from setting long-term targets and has instead opted to chose ambitious targets that the company says gives the company a flexibility to move "in step" with the shifting with the society form the use of  fossil fuels to cleaner energy as a response to battling global warming.
 
Shell however did not give any information about the amount of money that it would be spending to allow the company to meet the new climate goals.
 
"Shell’s aim is that, in the future, its operating plans and budgets will change to reflect this movement towards its new net-zero emissions ambition," it said in a statement.
 
(Source:www.nasdaq.com)