Shell Energy Transition Strategy 2024
How are we doing on our journey to net zero, as we deliver more value with less emissions?
In March 2024, we published our first energy transition update since 2021. It was an opportunity to take stock of our progress, to reflect on what we had learned, and to look forward as we transform Shell into a net-zero emissions energy business by 2050.
Shell Energy Transition Strategy 2024
We are providing energy today while building the energy system of the future
Shell Energy Transition Strategy 2024: Five things to know
Read the transcript
Read the transcript
Title: Shell Energy Transition Strategy 2024: Five things to know
Duration: 3:16 minutes
Description: Presentation by Wael Sawan providing highlights and updates on Shell’s Energy Transition Strategy.
Shell Energy Transition Strategy 2024: Five things to know Transcript
[Background music plays]
Bright piano music playing, based on the Shell jingle.
[Video sequence]
Wael Sawan, wearing a blue shirt, walks into frame in front of a brown chair in a modern office environment.
A shot from behind a film monitor that shows the head-on view from the camera as the Wael sits down in the chair.
Wael, seated in the centre of the frame, speaks, looking directly into the camera.
[Wael]
Energy. It’s made an incredible contribution to human development, allowing people around the world to lead more prosperous lives. And demand for it is growing. Meeting that demand while tackling climate change is an urgent challenge. But for Shell, it’s also a transformative opportunity. We’ve published our first update to the Energy Transition Strategy that we set out in 2021.
[Video sequence]
Camera cuts to a low angle looking up at Wael from the side as he speaks.
Camera cuts back to Wael seated in the centre of the frame, speaking, looking directly into the camera.
A shot of an oil rig in an empty ocean on a sunny day.
A ship with a crane is moored next to a windmill in an offshore windfarm on a sunny day.
[Text displays]
{In white text on the left of the screen, over the video footage}
Energy
Transition
Strategy
Update
[Transition]
Vignette shaped like the Shell logo.
[Video sequence]
A shot of an oil rig, painted yellow, in an empty ocean on a sunny day.
[Wael]
It shows how Shell will provide reliable, affordable energy to our customers while transforming to become a net-zero emissions energy business by 2050. OK, so there are five things you need to know about how we’re delivering more value with less emissions.
[Video sequence]
A large, black and white ship sails past a coastline, the cliffs visible behind it.
A person takes the plug of an electric vehicle charger out of a charging station.
A shot along a line of windmills in an offshore windfarm on a sunny day.
Wael, seated in the centre of the frame in a modern office environment, speaks, looking directly into the camera.
[Wael]
One: we’ve made good progress against our climate targets.
[Two-way split screen]
The screen is split in two by a giant number one in yellow text, reaching from top to bottom.
On the left, an ariel shot looking down on an oil rig.
On the right, a wide shot of a different oil rig, small boats sailing past it, switching to Wael addressing the camera.
[Text displays]
{In white text in the left-hand half of the split screen}
Progress
against
climate
targets
[Transition]
Vignette shaped like the Shell logo.
[Wael]
By the end of last year, we were 60% of the way to achieving our 2030 target of halving our Scope 1 and 2 emissions from our operations compared to 2016.
[Video sequence]
A shot of a large, black and white ship docked against a rough jetty.
On the left, an ariel shot looking down on a yellow oil rig.
A wide shot of a large energy plant in a rural landscape on a sunny day.
[Text displays]
{White text in a translucent grey textbox over top of video}
60%
To halving emissions
from operations
[Graphics]
In textbox next to text display, small animation of arrows rising up out of two yellow clouds, the largest containing the symbol CO2.
[Wael]
In 2023, we also reached our target to reduce the net carbon intensity of the energy products we sell, with a 6.3% reduction compared to 2016.
[Video sequence]
Wael, seated in the centre of the frame in a modern office environment, speaks, looking directly into the camera.
An out-of-focus shot of a petrol station forecourt lit up at night.
A hand takes a black petrol pump out of its holder.
A hand inserts the spout of a petrol pump into a car.
[Text displays]
{White text in a translucent grey textbox over top of video}
-6.3%
Net carbon intensity
of energy products
we sell
[Graphics]
In textbox next to text display, small logo of a lightbulb and a leaf connected with a wire.
[Wael]
This was the third year in a row that we’ve met our target.
[Video sequence]
Wael, seated in the centre of the frame in a modern office environment, speaks, looking directly into the camera.
[Wael]
Two: we’re growing our world-leading liquified natural gas, or LNG, business.
[Two-way split screen]
The screen is split in two by a giant number two in yellow text, reaching from top to bottom.
On the left, a large, black and white ship sails along a coastline towards the camera.
On the right, another angle of the same ship sailing along the coastline, switching to Wael addressing the camera.
[Text displays]
{In white text in the left-hand half of the split screen}
Growing
LNG
business
[Transition]
Vignette shaped like the Shell logo.
[Wael]
LNG is a critical lower carbon alternative to coal for power and for industry. Demand is increasing and we plan to meet it, growing our world-leading LNG business with lower carbon intensity.
[Video sequence]
A large, blue and white ship sails past an industrial plant on the coastline.
Two people in orange boiler suits and hard hats walk along a gantry through a large industrial site, pipes twisting in all directions.
A dark shot of a vat on a mechanical arm pouring red-hot, molten metal into a vessel.
A bright shot of a vat on a mechanical arm pouring red-hot, molten metal into a vessel, at a different angle.
An ariel shot of a large industrial site, dusty white, in a rural landscape.
[Text displays]
{In grey translucent text box and small type at the top of the screen}
LNG produces around 50% less carbon emissions than coal when used to generate electricity (IEA).
[Video sequence]
An ariel shot looking down on a network of metal pipes.
A shot of an industrial mechanism silhouetted against an ocean and coastline at dawn/dusk.
A close shot of a black and white ship on the sea on a sunny day.
A shot of a grassy bank filled with solar panels, overlooking a channel in which a black and white ship is docked.
[Two-way split screen]
The screen is split in two by a giant number three in yellow text, reaching from top to bottom.
On the left, a wide shot of a yellow oil rig on a sunny day.
On the right, sped-up footage of a busy motorway junction from above at night, switching to Wael addressing the camera.
[Wael]
Three: while the world still relies on oil, we will supply it, but with lower emissions.
[Text displays]
{In white text in the left-hand half of the split screen}
Lower-
emission
oil & gas
[Transition]
Vignette shaped like the Shell logo.
[Wael]
We’re designing more efficient platforms and powering them with solar and wind. In the Gulf of Mexico, we are the leading operator and have one of the lowest greenhouse gas intensities in the world for our oil production.
[Video sequence]
On a computer screen, a computer-generated schematic of an oil rig grows.
A shot looking down on an oil rig in a blue ocean.
A shot of a black and yellow oil rig with a helipad in an empty ocean.
The camera moves over a yellow oil rig in the ocean, a small boat visible in the distance.
Two people in hard hats wind a cable on a gantry in an industrial site.
Three people in hard hats and safety goggles look over a ledge and smile at the camera, an industrial site behind them.
A close-up of the yellow oil rig in an empty ocean on a sunny day.
Wael, seated in the centre of the frame in a modern office environment, speaks, looking directly into the camera.
[Two-way split screen]
The screen is split in two by a giant number four in yellow text, reaching from top to bottom.
On the left, a shot of a windmill in a windfarm on a sunny day.
On the right, a continuation of the shot of a windfarm on a sunny day, switching to Wael addressing the camera.
[Wael]
Four: we’ll offer our customers more low-carbon energy products and solutions.
[Text displays]
{In white text in the left-hand half of the split screen}
More
low-carbon
energy
products
and
solutions
[Transition]
Vignette shaped like the Shell logo.
[Wael]
We are increasing sales of biofuels, electric vehicle charging and renewable power, while also developing fuels of the future like hydrogen, along with carbon capture and storage.
[Video sequence]
A person plugs a yellow cable into some machinery.
A silver tanker pulls away from a pump at a Shell petrol station.
A wide shot of a Shell service station on a sunny day.
A solar panel in a field of solar panels tilts towards the blue sky.
A wide shot of an offshore windfarm at dawn/dusk.
Two men in white lab coats have a conversation in an industrial setting.
A white, computer-generated schematic of an industrial plant is projected over video footage of a large, empty, dirt yard.
A shot of a large industrial plant on a rocky outcrop along a coastline on a sunny day.
[Wael]
In fact, between 2023 and the end of 2025, we expect to invest $10-15 billon in low-carbon energy solutions.
[Video sequence]
Wael, seated in the centre of the frame in a modern office environment, speaks, looking directly into the camera.
A close-up of an electric vehicle charger plugged into an electric car.
[Text displays]
{In a translucent grey textbox over top of video}
$10-15 billion
Investment between 2023
and the end of 2025
[Graphics]
In textbox next to text display, small logo of two plants, the flowers being coins containing a dollar symbol.
[Wael]
Five: we’re focussing on our competitive strengths, setting targets and ambitions to measure our performance.
[Two-way split screen]
The screen is split in two by a giant number five in yellow text, reaching from top to bottom.
On the left, an ariel shot of a cityscape, the camera looking down between the skyscrapers at the street below.
On the right, a continuation of the shot of a city, switching to Wael addressing the camera.
[Text displays]
{In white text in the left-hand half of the split screen}
Focus on
competitive
strengths
[Transition]
Vignette shaped like the Shell logo.
[Wael]
For example, to help decarbonise transport, we’ve set a new ambition covering Scope 3 to help reduce our customers’ emissions from the use of our oil products by 15-20% by 2030 compared with 2021.
[Video sequence]
An ariel view of a complex motorway junction in daylight.
Sped up footage of a view down a motorway at dawn/dusk, traffic rushing along in a blur.
A hand takes a green petrol pump out of its holder.
A shot of a green petrol pump attached to a white car. A person appears to remove the pump.
[Text displays]
{In a translucent grey textbox over top of video}
15-20%
Customer emissions
from the use of our
oil products
[Graphics]
In textbox between two lines of text, small logo of a pair of hands surrounding the globe. The logo pulses.
[Video sequence]
Sped up footage of an ariel view of a car park next to a busy road at night.
Sped up footage of an ariel view a car park surrounding a building in daytime.
[Text displays]
{In grey translucent text box and small type at the top of the screen}
Customer emissions from the use of our oil products (Scope 3, Category 11) were 517 million tonnes carbon dioxide equivalent (CO2e) in 2023, 569 million tonnes CO2e in 2021 and 819 million tonnes CO2e in 2016. The 40% reduction includes circa 8% impact from 2016 to 2021 related to volumes associated with additional contracts being classified as held for trading purposes with effect from 2020.
[Wael]
To achieve all of this, we’re working with customers and partners, while calling on governments to support low-carbon choices. As Shell provides the different kinds of energy that the world needs, we believe we will be the partner of choice and the investment case t hrough the energy transition.
[Video sequence]
Wael, seated in the centre of the frame in a modern office environment, speaks, looking directly into the camera.
[Graphics]
The Shell logo appears on a white background. It pulses like a button being pressed, triggering a shell-shaped shockwave.
[Background music plays]
Shell jingle plays.
[Text displays]
{Over graphics}
#PoweringProgress
© SHELL INTERNATIONAL LIMITED 2024
[Text displays]
{On a blank white screen in small print}
Cautionary Note
The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this video “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to 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 video refer to entities over which Shell plc either directly or indirectly has control. The term “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 video 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” , “believe”, “could”, “estimate”, “expect”, “goals”, “intend”, “may”, “milestones”, “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 Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this video, 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, judicial, 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, regional conflicts, such as Russia’s invasion of Ukraine, and a significant cybersecurity breach; 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 video 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, 2023 (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 video and should be considered by the reader. Each forward-looking statement speaks only as of the date of this video, 14th March 2024. 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 video.
Shell’s net carbon intensity
Also, in this video we may refer to Shell’s “Net Carbon Intensity”, 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 Intensity” 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, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target as this target is currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans 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 video may contain certain forward-looking non-GAAP measures such as cash capital expenditure 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 measure 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.
The contents of websites referred to in this video do not form part of this video
We may have used certain terms, such as resources, in this video 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.
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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 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.
The contents of websites referred to in this content do not form part of this content.
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.
