Shell today announced it will offer customers carbon neutral lubricants across a range of products for passenger cars, heavy duty diesel engines and industrial applications. Shell aims to offset the annual emissions of more than 200 million litres of advanced synthetic lubricants, expecting to compensate around 700,000 tonnes of carbon dioxide equivalent (CO2e)1 emissions per year, which is equivalent to taking approximately 340,000 cars off the road for one year2.

“Shell has set a target to become a net-zero emissions energy business by 2050, in step with society and our customers,” said Carlos Maurer, Executive Vice President, Global Commercial at Shell. “We know our customers are looking for ways to reduce their net carbon footprint, and as the world’s leading lubricants supplier we have an important role to play. That is why I am pleased to announce the largest carbon neutral programme in the lubricants industry, and one that compensates for the full lifecycle emissions of our products. From today, our consumers, commercial drivers and industrial customers can now enjoy the benefits of improved engine performance and better fuel efficiency in a carbon neutral way.”

This represents a key milestone in Shell Lubricants’ multi-year strategy to help customers manage their sustainability needs and its ambition to reduce the carbon intensity of its products by avoiding, reducing, and offsetting emissions. Since 2016, Shell has reduced the carbon intensity of its lubricants manufacturing by over 30%3, and over 50% of electricity used in its lubricant blending plants now comes from renewable sources3. Shell is also reducing packaging waste from lubricants products at scale by increasing the use of recycled materials and exploring more sustainable packaging solutions across its supply chains.

While measures to avoid and reduce emissions offer the best way to tackle emissions in the long term, until scalable solutions are deployed, carbon offsetting programmes provide an immediate solution to balance CO2e emissions across Shell’s portfolio and value chain. Shell’s global portfolio of nature-based carbon credits will compensate CO2e emissions from the entire lifecycle of these products, including the raw materials, packaging, production, distribution, customer use and product end of life.

From today, Shell’s carbon neutral lubricants will be available in key markets across Europe, Asia-Pacific, the Middle East and North America. Shell will offset the emissions from a mix of advanced synthetic lubricants in these markets, including Helix and Pennzoil for passenger cars; Rimula and Rotella for heavy duty diesel engines, and a wide range of premium industry lubricants, including Shell Omala in the wind sector, Shell’s range of eco-Label products “Shell Naturelle”, and the Shell Gadus greases product range.

Notes to editors

Footnotes:

  1. The term “Carbon Neutral”, indicates that Shell has engaged in a transaction where an amount of carbon dioxide equivalent associated with the acquisition and pre-processing of raw materials, lubricants production, packaging, distribution, and the subsequent use and end of life treatment of the used materials in relation to the Shell Lubricants products, has been removed from the atmosphere through a nature based process, or emissions saved through avoided degradation of natural ecosystems.
  2. Actual emissions from driving are sensitive to underlying assumptions. Full disclaimer is available here.
  3. Internal Shell analysis.

Shell Lubricants:

  • Shell supports projects which focus on protecting and restoring natural ecosystems: they naturally remove CO2 from the atmosphere every year while also improving biodiversity, protecting endangered species and supporting local communities.
  • Shell’s global portfolio of nature-based carbon credits will compensate CO2 equivalent emissions from the entire lifecycle of these products, including the raw materials, packaging, production, distribution and customer use and product end of life. Each carbon credit represents the avoidance or removal of greenhouse gases equivalent to 1 tonne of CO2.
  • The portfolio of carbon neutral lubricants will include:
    • Shell Helix Ultra 0W in Europe, Asia-Pacific (including China) and the Middle East; Shell Helix Ultra 5W in Asia-Pacific (including China)
    • Pennzoil Platinum 0W, Pennzoil Platinum High Mileage 0W, and Pennzoil Ultra Platinum 0W products in the United States and Canada
    • Shell Rimula: R6 and Ultra products in Asia-Pacific and Europe
    • Shell Rotella: T5 and T6 in the United States and Canada
    • B2B industry lubricants – a wide range of B2B premium products, including lubricants and greases used in the wind sector, Shell’s range of eco-Label products “Shell Naturelle”, and a variety of other premium products for industrial applications.
  • Shell is the biggest supplier of lubricants in the world, selling approximately 5 billion litres of finished lubricants annually to consumer automotive, commercial automotive, aviation, marine, mining, power generation and industrial segments. For further information, visit our news release issued on 26 November 2020.
  • Shell offers our customers specialised lubricants for hybrid vehicles as well as E-Fluids that help electric vehicles perform better and more efficiently.
  • Read more about how Shell Lubricants is delivering improved performance with lower emissions, fewer natural resources and less waste.

Nature-Based Solutions:

  • Nature-based solutions are projects which protect, transform or restore land. In this way, nature absorbs more CO2 emissions from the atmosphere.
  • The protection, or redevelopment, of natural ecosystems – such as forests, grasslands, peatlands and wetlands – leads to lower concentrations of greenhouse gases in the atmosphere. Such activities can also result in the creation, marketing, trading and sale of carbon credits. They also help deliver many other benefits, including improvements in biodiversity, water quality, flood protection and livelihoods.
  • Shell is one of the most established investors of carbon credits in the world. Our growing portfolio of verified projects helps our customers meet the environmental and sustainability commitments that they have made to their employees, customers and shareholders.
  • For further information on Shell’s investments in natural ecosystems visit: www.shell.com/naturebasedsolutions

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Royal Dutch Shell plc

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit www.shell.com.

Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this press release “Shell”, “Shell Group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this press release refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

This press release contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s Form 20-F for the year ended December 31, 2019 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this press release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, [23 February 2021]. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.

We may have used certain terms, such as resources, in this press release that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

Additionally, it is important to note that as of [23 February 2021], Shell’s operating plans and budgets do not reflect Shell’s Net-Zero Emissions target. Shell’s aim is that, in the future, its operating plans and budgets will change to reflect this movement towards its new Net-Zero Emissions target. However, these plans and budgets need to be in step with the movement towards a Net-Zero Emissions economy within society and among Shell’s customers.

Also, in this press release we may refer to Shell’s “Net Carbon Footprint”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Footprint” is for convenience only and not intended to suggest these emissions are those of Shell or its subsidiaries.