What is Shell's view on climate change?
Shell agrees that urgent action is needed on climate change. This page explains Shell's position on climate change, its progress, and its engagement on climate and energy policy.
Summary
- Shell agrees that urgent action is needed on climate change and fully supports the need for society to transition to a lower-carbon future.
- Shell believes that collaboration and effective government policies are needed to drive the transition while maintaining a secure and affordable supply of energy.
- Shell is focused on reducing emissions from its operations.
- At the end of 2025, we had reduced our Scope 1 and 2 operational emissions by 36%, on a net basis, from our 2016 baseline. The net carbon intensity (NCI) of the energy products we sell also decreased by 9.0% over the same period.
- Shell has also reduced total methane emissions from assets under its operational control by 78% compared with 2016.
Shell's position on climate change
Shell agrees on the existence of climate change and that greenhouse gas ("GHG") emissions, which include carbon dioxide ("CO2"), are contributing to climate change.
Shell agrees that action is needed now on climate change and fully supports the need for society to transition to a lower-carbon future.
Shell, like many others, has long recognised the issue of climate change, which has been part of public discussion and ongoing scientific research for many decades. Shell’s position on climate change has been publicly documented for more than 30 years, including in publications such as its Annual Reports and Sustainability Reports.
Shell's climate-related progress
- As of January 2025, we met our target to eliminate routine flaring from our upstream-operated assets, five years ahead of the World Bank Zero Routine Flaring Initiative deadline.
- By the end of 2025, we had reduced the net carbon intensity of the energy products we sell by 9%, compared with 2016.
- By the end of 2025, we had also reduced emissions from the use of our oil products by 18% compared with 2021*
*Customer emissions from the use of our oil products (Scope 3, Category 11) were 517 million tonnes carbon dioxide equivalent (CO2e) in 2023 and 569 million tonnes CO2e in 2021.
Definitions
Definitions
Scope 1: Emissions that come directly from our operations.
Scope 2: Emissions from the energy we buy to run our operations.
Scope 3: Customer emissions from the use of the energy products we sell.
Net-zero emissions: When the amount of greenhouse gases released into the atmosphere from human activities is equal to the amount removed through natural or technological processes, such as reforestation or carbon capture and storage.
What is Shell's position on climate policy and why does it engage with governments?
National and international climate and energy transition policies play a key role in driving and enabling the energy transition.
- We advocate directly to governments and policy makers, offering relevant information, views, and policy recommendations on new proposals. We also engage governments and policymakers indirectly, for example through our participation in coalitions and industry associations. We recognise that industry associations may represent many members and sometimes we may have different views on a topic. We join coalitions where there is likely to be a common advocacy objective.
- We provide input into the development of policy, legislation and regulation that support secure and affordable energy supplies. We also advocate policies, legislation and regulation that help to build the energy system of the future, including support for low-carbon energy products and solutions. Read more in our Climate and Energy Transition Lobbying Report.
- We take a transparent approach to our advocacy and engagements. This includes publishing a wide range of examples of our advocacy online.
- Our global climate and energy transition policy positions set out the key policies we believe are needed to help provide secure energy supplies, drive changes in consumer behaviour, and increase investment in low-carbon energy solutions.
We are, for example, calling on governments and policymakers to put a direct price on carbon emissions as part of a broader policy framework to achieve net-zero emissions. Shell has been advocating for a CO2 trading system for at least three decades.
Frequently asked questions about Shell's view on climate change
What role does Shell play in helping tackle climate change?
What role does Shell play in helping tackle climate change?
We believe urgent action is needed on climate change and that organisations like Shell have an important role to play.
We support a balanced energy transition, one that maintains secure and affordable energy supplies as the world moves to low-carbon energy.
For Shell, this includes supplying the oil and gas people need today, while investing in low-carbon energy products and solutions.
What historic knowledge did Shell have about climate change?
What historic knowledge did Shell have about climate change?
We have long recognised the issue of climate change, which has been part of public discussion and ongoing scientific research for many decades. Our position has been publicly documented for more than 30 years, including in publications such as our Annual Reports and Sustainability Reports. We even produced a documentary called “Climate of Concern” in 1991, which was available to the public.
What is Shell doing to reduce carbon emissions?
What is Shell doing to reduce carbon emissions?
To decarbonise our operations, we are:
- using more renewable electricity to power our operations;
- developing CCS for some of our facilities;
- improving the energy efficiency of our operations; and
- making portfolio changes such as acquisitions and investments in low carbon intensity projects, decommissioning facilities, divesting assets while sustaining our liquids production.
If required, we may choose to use high-quality carbon credits to offset any remaining emissions from our operations, in line with the carbon mitigation hierarchy of avoid, reduce, and compensate or to meet local regulatory requirements. Read more on the Annual Report.
Why does Shell continue to invest in oil and gas?
Why does Shell continue to invest in oil and gas?
- According to the International Energy Agency (IEA) analysis* the global average annual natural decline of the world's conventional oil and gas fields to be between 5.6-6.8%. Importantly, the world’s demand for oil and gas is expected to fall at a slower rate.
- The IEA also notes that if “…all capital investment in existing sources of oil and gas production were to cease immediately, global oil production would fall by 8% per year on average over the next decade, or around 5.5 million barrels per day (mb/d) each year. This is equivalent to losing more than the annual output of Brazil and Norway each year.”*
- Significant investment in oil and gas production will therefore be needed to support demand while low-carbon alternatives are being developed and made commercially available.
- Nearly 90% of annual upstream oil and gas investment since 2019 has been dedicated to offsetting production declines rather than to meet demand growth, according to the IEA. Continued investment in oil and gas is needed to maintain reliable and affordable energy supplies.
- The pace of transition depends on action in many areas, including government policy, changing customer demand and investment in low-carbon energy.
- Countries have different energy sources and starting points, and will move at different paces. It is for governments and regulators to decide the right energy mix for their countries while balancing energy security, affordability and sustainability.
*IEA Report, ‘The Implications of Oil and Gas Field Decline Rates’, 16 September 2025: Executive summary – The Implications of Oil and Gas Field Decline Rates – Analysis - IEA
What is Shell doing in relation to Scope 3 customer emissions?
What is Shell doing in relation to Scope 3 customer emissions?
- Scope 3 Category 11 emissions are customer emissions from the use of the energy products we sell and account for the majority of the emissions we report.
- By the end of 2025, Shell had reduced the net carbon intensity of the energy products we sell by 9%, compared with 2016.
- By the end of 2025, Shell had reduced emissions from the use of our oil products by 18% compared with 2021*.
*Customer emissions from the use of our oil products (Scope 3, Category 11) were 517 million tonnes carbon dioxide equivalent (CO2e) in 2023 and 569 million tonnes CO2e in 2021.
What are Shell’s methane emissions reductions commitments and progress?
What are Shell’s methane emissions reductions commitments and progress?
Methane is a potent greenhouse gas which remains in the atmosphere for a much shorter time than CO2 but traps heat far more effectively. The production of oil and gas can release methane emissions from flaring, venting and fugitive emissions.
Shell remains a leader in reducing emissions of methane.
In 2025, overall methane emissions intensity was 0.04% for Shell-operated oil and gas assets with marketed gas and 0.002% for Shell-operated oil and gas assets without marketed gas
By the end of 2025, we had also reduced total methane emissions from assets under our operational control by 78% compared with 2016. We also met our target to eliminate routine flaring from our upstream-operated assets, five years ahead of the World Bank Zero Routine Flaring Initiative deadline.
In 2025, 80.85% of Shell’s global investments included oil & gas, 9.58% included low-carbon energy solutions and 9.58% non-energy products.
Cautionary note
Cautionary note
The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this content “Shell”, “Shell Group” and “Group” are sometimes used for convenience to reference Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to 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 content refer to entities over which Shell plc either directly or indirectly has control. The terms “joint venture”, “joint operations”, “joint arrangements”, and “associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. 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.
Forward-Looking statements
This content 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 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, including (without limitation) those concerning Shell’s strategy and operating plans, macroeconomic conditions, future energy demand, supply and product mix, commodity prices, demand for Shell’s products, production results and reserve estimates, development, execution and management of projects, energy transition and climate change, management of safety and environmental risks, costs, cash capital expenditures, technology advancements, legislative, judicial, fiscal and regulatory developments, regional conflicts and trading conditions, 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 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’’; “aspire”, “aspiration”, ‘‘believe’’; “commit”; “commitment”; ‘‘could’’; “desire”; ‘‘estimate’’; ‘‘expect’’; ‘‘goals’’; ‘‘intend’’; ‘‘may’’; “milestones”; ‘‘objectives’’; ‘‘outlook’’; ‘‘plan’’; ‘‘probably’’; ‘‘project’’; ‘‘risks’’; “schedule”; ‘‘seek’’; ‘‘should’’; ‘‘target’’; “vision”; ‘‘will’’; “would” and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this content, 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, including climate change; (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, judicial, fiscal and regulatory developments including tariffs and 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, regional conflicts, such as the Russia-Ukraine war and the conflict in the Middle East, and a significant cyber security, data privacy or IT incident; (n) the pace of the energy transition; and (o) 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 content 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 Shell plc’s Form 20-F for the year ended December 31, 2025 (available at www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this content and should be considered by the reader. Each forward-looking statement speaks only as of the date of this content. Neither 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 content.
Shell’s net carbon intensity and net-zero emissions target
In this content we may refer to Shell’s “net carbon intensity” (NCI), 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’s NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell’s “net carbon intensity” or NCI is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.
Shell’s operating plan and outlook are forecasted for a three-year period and ten-year period, respectively, and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next three and ten years. Accordingly, the outlook reflects our combined Scope 1 and 2 target, NCI target and our oil products ambition over the next ten years. However, Shell’s operating plan and outlook cannot reflect our 2050 net-zero emissions target, as this target is outside our planning period. Such future operating plans and outlooks could include changes to our portfolio, efficiency improvements and the use of carbon capture and storage and carbon credits. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans and outlooks to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.
The information provided above regarding Shell’s NCI and net zero emissions target are not intended, nor should they be construed as introducing, suggesting or making any claim, target or representation thereof other than what is included in the content.
Forward-Looking non-GAAP measures
This content may contain certain forward-looking non-GAAP measures such as free cash flow and underlying operating expenses. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements. These forward-looking non-GAAP measures are provided to assist readers in understanding management’s use and expectations of such measures and may not be appropriate for other purposes.
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We may have used certain terms, such as resources, in this content 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.
