Royal Dutch Shell Commits To Net Zero Emissions By 2050
Royal Dutch Shell PLC, one of the world's largest oil and gas producers, on Thursday promised to become net carbon neutral by 2050 at the latest.
The Anglo-Dutch major said its ambition is to be net zero on all the emissions from the manufacture of all its products by 2050 at the latest. It said it was accelerating its net carbon footprint ambition to be in line with the Paris Agreement on Climate Change's aim to limit the world's average temperature rise to 1.5 degrees Celsius.
Shell also said it will "pivot towards serving businesses and sectors that by 2050 are also net-zero emissions".
"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," said Chief Executive Officer Ben van Beurden.
"Society's expectations have shifted quickly in the debate around climate change. Shell now needs to go further with our own ambitions."
Back in January, protesters from Extinction Rebellion Scotland blocked the entrance to Shell's offices in Aberdeen, saying they wanted to hold the company to account for its role in climate change.
In recent years, the oil major has been ramping up its exposure to cleaner energy, including natural gas and renewables.
At a management day in London last June, van Beurden said the quickest contribution that Shell can make to fighting climate change is to increase the use of natural gas over coal and oil.
Some 85% of Shell's carbon emissions come from customer usage of its products, not actual production, van Beurden said at the time, meaning if it is to meet climate targets its product portfolio must change.
Shell 'A' shares were up 1.4% early Thursday in London at 1,334.21 pence.