Climate

Our target is to become a net-zero emissions energy business by 2050. As we implement our strategy to deliver more value with less emissions, we are reducing emissions from our operations, and helping our customers transition to cleaner energy solutions. Find out more about how we are working to achieve this target and our progress so far.

Download our Annual Report and Accounts 2024 to read our key sustainability-related information

Our targets and ambition

Our target to become a net-zero emissions energy business by 2050 is transforming our operations and energy products. We believe this target supports the more ambitious goal of the Paris Agreement, to limit the rise in the global average temperature this century to 1.5°C above pre-industrial levels.

Our net-zero target includes emissions from our operations, as well as from the end-use of all the energy products we sell. The metrics we use to track progress against our energy transition targets and ambition include:

Halving Scope 1 and 2 emissions under our operational control by 2030, on a net basis, compared with 2016. Scope 1 emissions come directly from our operations, and Scope 2 from the energy we buy to run our operations.
Maintaining methane emissions intensity for operated oil and gas assets below 0.2% and achieve near-zero methane emissions intensity by 2030.
Reducing the net carbon intensity (NCI) of the products we sell by 15-20% by 2030. NCI measures emissions associated with each unit of energy we sell^[A]. It reflects changes in sales of oil and gas products, and changes in sales of low- and zero-carbon products - such as biofuels and renewable electricity. Reducing the NCI of the products we sell requires action by both Shell and our customers, with the support of governments and policymakers to create the right conditions for change.

We also have an ambition to reduce customer emissions from the use of our oil products by 15-20% by 2030, Scope 3 Category 11 (2021 baseline).^[B]

We have set short-, medium- and long-term targets to reduce the net carbon intensity of the energy products we sell, compared with 2016:

2-3% by 2021 - achieved

3-4% by 2022 - achieved

6-8% by 2023 - achieved

9-12% by 2024 - achieved

9-13% by 2025

15-20% by 2030

100% by 2050

Our progress

2024 performance:

Scope 1 and 2 emissions were down by 30% compared with the 2016 reference year^[C]. By the end of 2024, we had achieved 60% of the reduction required to halve emissions from our operations (Scopes 1 and 2) by 2030, compared with 2016.
Methane emissions intensities well below our 0.2% target, with overall methane emissions intensity at 0.04% for Shell-operated oil and gas assets with marketed gas and 0.001% for Shell-operated oil and gas assets without marketed gas.
Net carbon intensity (NCI) decreased by 9.0% compared with the 2016 reference year and was within the 2024 target range.
Routine flaring from upstream operations remained stable at 0.1 million tonnes and, with effect from January 1, 2025, Shell no longer carries out any routine flaring at its upstream operations.
Customer emissions from the use of our oil products (Scope 3, Category 11) were reduced by 5% in 2024 to a total of 14% compared with 2021^[D].

Shell Energy Transition Strategy 2024

See how we are providing energy today while helping to build the energy system of the future

Learn more about our Shell Energy Transition Strategy

Our approach

To decarbonise our operations, we are:

making portfolio changes such as acquisitions and investments in new, low-carbon intensity projects, decommissioning plants, divesting assets, while sustaining our oil production with increasingly lower carbon intensity;
progressing the repurposing of our energy and chemicals parks;
improving the energy efficiency of our operations;
using more renewable electricity to power our operations; and
developing carbon capture and storage (CCS) for some of our facilities.

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.

To reduce emissions from the products we sell, we are:

increasing the proportion of gas and LNG in our hydrocarbon sales;
increasing sales of low-carbon fuels, such as biofuels;
growing our power sales, including those of renewable power;
reducing sales of oil products;
developing and deploying more CCS; and
using high-quality carbon credits, such as nature-based solutions, to offset remaining carbon emissions.

Our Net Carbon Footprint methodology (PDF)

Footnotes

^[A] _{Shell’s net carbon intensity is the average intensity, weighted by sales volume, of the energy products sold by Shell. It is tracked, measured and reported using our Net Carbon Footprint (NCF) methodology (PDF, 2 MB)}

^[B] _{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.}

^[C] _{Reduced from 83 million tonnes of CO₂e in 2016 to 58 million tonnes of CO₂e in 2024.}

^[D]_{Customer emissions from the use of our oil products (Scope 3, Category 11) were 517 million tonnes CO₂e in 2023 and 569 million tonnes CO₂e in 2021.}

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 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 and amendment thereto for the year ended December 31, 2024 (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

Also, 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 net-zero emissions target

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 Scope 1, Scope 2 and NCI targets 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.

Forward-Looking non-GAAP measures

This content may contain certain forward-looking non-GAAP measures such as adjusted earnings and divestments. 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.

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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 and amendment thereto, File No 1-32575, available on the SEC website www.sec.gov