Shell welcomes and strongly supports the Paris Agreement, and supports the aspiration of transitioning towards a net-zero emissions world by 2050. We will work together with governments and stakeholders towards meeting this aspiration and we commit to report on steps taken. We see opportunity through the transition and are convinced we have the required flexibility to adapt and remain relevant and successful, no matter how it will evolve.

Investors are increasingly asking companies to disclose more information on the topic of climate change risk. In late 2015, Mark Carney, governor of the Bank of England and head of the Financial Stability Board, called for greater transparency on the risks climate change may impose on an organisation in financial terms, establishing the Task Force on Climate-related Financial Disclosures (TCFD). G20 countries supported this initiative to develop a framework with recommendations for disclosures which will be presented to the G20 in July 2017. These are for use across all business sectors.

The TCFD’s approach is not a set of specific questions that might be found in, for instance, the CDP (formerly Carbon Disclosure Project) or the Dow Jones Sustainability Index questionnaire. Instead, it proposes guidance to inform how companies assess and monitor potential climate risks and opportunities, and ensure they have appropriate governance in place to respond to identified risks. The framework defines four categories of information to be disclosed: governance, strategy, risk management, metrics and targets.

We believe that many of TCFD’s disclosure recommendations already align with several areas of Shell’s current reporting through our Annual Report/20F, the Shell Energy Transitions and Portfolio Resilience report and the Sustainability Report. To build understanding of the topic of climate change risk, we will continue to engage with the taskforce to suggest forms of disclosure which, where commercially possible for Shell, will be most relevant and useful to investors.

Harry Brekelmans, Projects & Technology Director at Shell, said: “We have strong experience with sustainability reporting through our annual Sustainability Report. We welcome and support efforts, such as those led by the Task Force on Climate-related Financial Disclosures (TCFD), to increase transparency and to promote investors’ understanding of companies’ strategies to respond to the risks and opportunities presented by climate change. We believe that many of TCFD’s disclosure recommendations already align with several areas of Shell’s current reporting through our Annual Report/20F, the Shell Energy Transitions and Portfolio Resilience report and the Sustainability Report. And we are engaging with the taskforce to suggest forms of disclosure which, where commercially possible, will be most relevant and useful to investors.”

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Performance data

Our performance is tracked against a range of environmental and social indicators to work towards continuous improvement in these areas.

Greenhouse gas emissions

In 2017 we obtained limited assurance of our 2016 direct and indirect greenhouse gas emissions data from facilities we operate.