Shell steps up net-zero emissions actions

(Sharecast News) - Royal Dutch Shell said it was stepping up its activities to become carbon neutral to respond to heightened concerns about oil companies' impact on the climate.

Britain's biggest oil company committed itself to have net-zero emissions from manufacturing of all products by 2050 at the latest - in line with the 2015 Paris agreement on climate change.

Shell said it would cut the net carbon footprint of its energy products by about 65% by 2050, improving on a previous pledge to cut by 50%. The company aims to reduce its footprint by about 30% by 2035, strengthening an earlier goal of a 20% cut by that date.

Ben van Beurden, Shell's chief executive, said: "With the Covid-19 pandemic having a serious impact on people's health and our economies, these are extraordinary times. Yet even at this time of immediate challenge, we must also maintain the focus on the long term."

"Society's expectations have shifted quickly in the debate around climate change. Shell now needs to go further with our own ambitions."

The Anglo-Dutch company also said it would "pivot" towards serving businesses and industries that also have net-zero emissions.

Shell has come under pressure from campaigners and investors under the Climate Action 110+ umbrella to strengthen its commitment to reduce damaging emissions. The company will update investors on its detailed plans on Thursday.

Peter Ferket, chief investment officer of Robeco, who helps lead Climate Action 100+'s dialogue with Shell, said: "These new ambitions build on the 2018 joint statement between Shell and Climate Action 100+. It proves that the strong and committed engagement of institutional investors with Shell can help accelerate the pace of change to deliver the goals of the Paris agreement. It raises the bar and sets out an approach for others in the oil and gas sector to follow."