Shell 'to be net-zero company by 2050'

Commenting after Shell announced its intention to become net-zero company by 2050, Luke Parker, vice president, corporate analysis, at Wood Mackenzie, said: “This is an evolution of the net carbon footprint ambition that Shell unveiled in November 2017.

“It has effectively accelerated its ambition to reduce the net carbon footprint of the energy products it sells (Scope 1, 2 and 3) by 65% by 2050, instead of 50%.

“The interim ambition shifts to 30% by 2035, instead of 20%. Shell sees this as bringing the company in line with changed societal ambitions for 1.5°C, rather than 2°C, as previously targeted.

“The ambition is based on net carbon intensity rather than absolute emissions, and covers Scope 3 emissions associated with the energy products that Shell sells, rather than all products.  

"It has also made a new commitment to become net zero on an absolute basis on the Scope 1 and 2 emissions associated with all products that it manufactures.

“This is a commitment on absolute emissions - rather than intensity - and all products, not just energy. The new commitment is complementary to the evolution of the pre-existing ambition, and effectively sits inside the revised ambition.

“The fact that Shell announced the move now underlines its commitment to make the shift from Big Oil to Big Energy. Coronavirus and its fall-out doesn’t change that … if anything, it adds greater weight to the argument. Despite immediate cash flow constraints, Shell (and its peers) will emerge from this period more determined to make the shift.”