Shell scales back its climate goals amid business growth
Shell USA's foundation gave more than $500,000 to right-wing organizations that promote climate denial, anti-abortion and anti-LGBTQ+ agendas, including several involved in Project 2025, which aims to weaken federal agencies like the U.S. Environmental Protection Agency.
Climate & energyRuling
Shell achieved a 30% reduction in Scope 1
ments, including total shareholder distributions* in 2024 of 41% of CFFO ($22.6 billion), at the upper end of the promised 30-40% of CFFO through the cycle, and structural cost reduction* of $3.1 billion since 2022 against the commitment of $2-3 billion by the end of 2025; ￮ continued high-grading of the portfolio, including agreement to sell our Energy and Chemicals Park in Singapore and our Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC); ￮ delivery of improved operational performance, including Prelude significantly increasing its controllable availability since its turnaround last year; ￮ final investment decisions made across a number of low-carbon projects, including the Polaris and Atlas (Phase 1) CCS projects in Canada, and the hydrogen project Refhyne II in Germany; ￮ continuing Shell's role in shaping the broader energy conversation through engagements at events including CERAWeek, ROG.e, ADIPEC, and the Center for Strategic and International Studies; ￮ continued focus on safety and climate performance, including the achievement of a 30% reduction of Scope 1 and 2 operational emissions, and a 9.0% reduction in NCI vs. the 2016 baseline; and ￮ driving Shell's performance, discipline and simplification, growing business empowerment across all organisational levels.
Shell's final investment decision on the Aphrodite gas project reaffirms its dedication to growing the LNG supply base while strengthening Trinidad's position in the global energy value chain.
"Whale demonstrates our focus on driving more value with less emissions from our Upstream business as we deliver the energy people need today," said Zoë Yujnovich, Shell's Integrated Gas and Upstream Director.
Shell starts production at Whale in the US Gulf of Mexico
Shell faced a significant shareholder rebellion over its climate strategy, with 19% of shareholder votes backing a resolution calling for more urgent action—against the board’s guidance.
In the first half of 2023, Shell reported $11.6 billion in total spending, of which less than $1 billion went to renewables and “energy solutions”—a category that also includes fossil fuel investments such as marketing and trading of pipeline gas.
As of last year, Exxon Mobil and Shell projected a 35 percent increase in oil production efforts between 2018 and 2030, while BP’s oil and gas production is expected to rise by over 20 percent.
In Europe campaigners in the Netherlands won a major case against Shell in 2021 with the courts ordering Shell to cut its absolute carbon emissions by 45% by 2030, including those emissions that come from the use of its products.
In its latest strategy update, Shell announced that its own CO2 emissions and oil production have peaked, but also said it would expand its gas operations in the coming years.
“If we start normalising the use of these planetary scale negative emissions it allows a company like Shell to basically claim they are in line with apparently whatever climate target you come up with, just by assuming large-scale negative emissions and at the same time saying we need to invest in oil and gas development.”
Within Shell’s strategy, chief executive, Wael Sawan, writes that this change reflects “a strategic shift” to focus less on selling electricity, including renewable power.
Shell has abandoned a key climate target for 2035 and weakened another goal for 2030, according to its latest “energy transition strategy”.
Shell states that it has so far met its climate targets and points to its success reducing emissions from its own operations, such as those from oil rigs and offices. It argues in the small print at the bottom of the report that, despite its targets for consumer carbon intensity, “Shell only controls its own emissions”.
An activist group said it has withdrawn a resolution calling for Shell to slash its investment in fossil fuels, following commitments by the company to set targets to cut greenhouse gas emissions.
Shell employees and contractors are required to complete training courses that reinforce expected behaviours for a respectful, inclusive workplace, and build our stance against discrimination and harassment, including bullying and sexual harassment.
Capex related to coal, oil and gas Shell is active in the fossil fuel sector and makes significant capital expenditures on oil- and gas-related activities.
￮ In August 2024, Arrow Energy, an incorporated joint venture between Shell (50%) and PetroChina (50%), announced the sanction of Phase 2 of Arrow Energy's Surat Gas Project in Queensland, Australia. During 2024, we continued to grow our world-leading LNG business. We invested in our existing assets, for example taking a final investment decision on the Manatee gas project in Trinidad and Tobago and by going ahead with projects to supply gas at our LNG facilities in Australia, such as Surat Gas Project North.
Shell QGC (Shell interest between 44% and 74%) produces natural gas from wells drilled into coal seams in the Surat Basin.
ments, including total shareholder distributions* in 2024 of 41% of CFFO ($22.6 billion), at the upper end of the promised 30-40% of CFFO through the cycle, and structural cost reduction* of $3.1 billion since 2022 against the commitment of $2-3 billion by the end of 2025; ￮ continued high-grading of the portfolio, including agreement to sell our Energy and Chemicals Park in Singapore and our Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC); ￮ delivery of improved operational performance, including Prelude significantly increasing its controllable availability since its turnaround last year; ￮ final investment decisions made across a number of low-carbon projects, including the Polaris and Atlas (Phase 1) CCS projects in Canada, and the hydrogen project Refhyne II in Germany; ￮ continuing Shell's role in shaping the broader energy conversation through engagements at events including CERAWeek, ROG.e, ADIPEC, and the Center for Strategic and International Studies; ￮ continued focus on safety and climate performance, including the achievement of a 30% reduction of Scope 1 and 2 operational emissions, and a 9.0% reduction in NCI vs. the 2016 baseline; and ￮ driving Shell's performance, discipline and simplification, growing business empowerment across all organisational levels.
a 15–20% reduction in NCI by 2030 (2016 baseline), a 15–20% reduction in customer emissions from the use of our oil products by 2030 (2021 baseline) [A], as well as Shell's wider performance in accelerating the energy transition, e.g.
In the Gulf of America (GoA), Shell is a leading producer and operates 10 production hubs — making it a heartland for our deep-water operations.
Shell's targets — including to reduce absolute Scope 1 and 2 emissions on a net basis [B] by 50% by 2030, compared with a 2016 baseline, and a 15-20% reduction of net carbon intensity [C] by 2030 — have been included in the Operating Plan.