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(Alliance News) - Shell PLC on Thursday softened its target for carbon emissions but pledged to invest heavily to meet its net zero target.
Shares in Shell were up 0.6% to 2,543.50 pence each in London on Thursday.
Updating its energy transition strategy for the first time since it was launched in 2021, the London-based oil and gas major said it will continue its drive to halve emissions from its operations by 2030, compared with 2016.
By the end of 2023, it had achieved more than 60% of this target, Shell said.
But Shell said that it now plans to reduce the "net carbon intensity" of the energy it sells by 15% to 20% by 2030 compared to 2016. Its previous target had been to reduce the measure by 20%.
It also dropped a plan to reduce net carbon intensity by 45% by 2035 due to "uncertainty in the pace of change in the energy transition", although it still intends a 100% reduction by 2050.
Alongside the reduction in these targets, Shell announced a new target to reduce the emissions caused when customers use its oil products by 15% to 20% by 2030 compared to 2021.
Shell said its target to achieve net-zero emissions by 2050 is "transforming our business".
"Energy has made an incredible contribution to human development, allowing many people around the world to live more prosperous lives. Today, the world must meet growing demand for energy while tackling the urgent challenge of climate change. I am encouraged by the rapid progress in the energy transition in recent years in many countries and technologies, which reinforces my deep conviction in the direction of our strategy," said Chief Executive Officer Wael Sawan.
Shell said this focus has led to a strategic shift in its integrated power business. "We plan to build our power business, including renewable power, in places including Australia, Europe, India and the USA, and have withdrawn from the supply of energy directly to homes in Europe."
Shell said it will sell more power to commercial customers and less to retail customers.
The refocus away from household energy supply meant that last year Shell sold its retail unit, Shell Energy, in the UK and Germany to Octopus Energy.
Given this, Shell said it expects lower total growth of power sales to 2030, which led to the revised net carbon intensity target.
Shell said it had met its annual target to reduce the net carbon intensity of the energy products it sells.
"Our next targets are to reduce this by 9-12% by 2024, 9-13% by 2025, 15-20% by 2030, and 100% by 2050, compared with 2016," Shell said.
As part of this, Shell plans to invest USD10 to USD15 billion between 2023 and the end of 2025 in low-carbon energy solutions.
These investments include electric vehicle charging, biofuels, renewable power, hydrogen and carbon capture and storage.
By Jeremy Cutler, Alliance News reporter
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