The company also stated that it will make changes to align with the Paris Agreement’s goal of limiting warming to 1.5 degrees Celsius
This Thursday, Shell announced a net zero emissions target for 2050. Investment in renewables will be a big game changer for the oil giant, in terms of moving it closer to the net zero target. However, the entity also aims to expand its power business.
The company also stated that it will make changes to align with the Paris Agreement’s goal of limiting warming to 1.5 degrees Celsius. In a call with investors, CEO Ben Van Beurden said restricting warming to 1.5 degrees Celsius will be economically and technically possible.
“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, which is why we aim to be a net-zero emissions energy business by 2050 or sooner. Society, and our customers, expect nothing less,” Van Beurden said.
“We’re not going to turn into a charity or a nongovernmental organization. This only works if there is money to be made, otherwise it is not viable,” he said.
The intention is to start selling less oil and more power and natural gas. To decrease its own emissions, Shell will resume the expansion of its sizable renewables business. It will also work on carbon offset measures like tree planting. The company will also address “Scope 3”emissions which account for 85% of the company’s ultimate carbon footprint. According to the Greenhouse Gas (GHG) Protocol, a Scope 3 of a company’s GHG emissions are those emitted by entities in the value chain of the reporting company. Examples of Scope 3 emissions are: business travel, purchased goods and services, employee commuting, waste disposal, use of sold products, transportation and distribution, investments, leased assets and franchises and so on.
Shell has recently started investing in renewable energy projects and entities around the world. The company has projects like electric vehicle (EV) charging, floating wind technology and green hydrogen. It has stakes in four off shore wind developments on either side of the Atlantic.
The COVID-19 pandemic, which has caused a collapse in global oil prices, has not weakened Shell’s will on the energy transition. Shell is moving from Big Oil to Big Energy. Despite the COVID-19 fallout, Shell and its peers will come out of this period stronger and more determined to make the shift. The company’s present budgets and business plans don’t reflect the new objectives, but will be adjusted soon.
Add Comment