Shell announced on Thursday that it had revised its target to reduce the intensity of its overall carbon emissions by 2030, attributing this adjustment to anticipated decreases in power sales.
In its annual update on its energy transition strategy, the British energy company reaffirmed its commitment to achieving net-zero emissions by 2050.
Shell stated that it aims to achieve a 15-20% reduction in the net carbon intensity of its energy products by 2030, compared to the intensity levels recorded in 2016. This target represents a slight adjustment from its previous goal of a 20% reduction.
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Assessing emissions by intensity allows a company to raise its fossil fuel production and overall emissions while offsetting them by including renewable energy or biofuels in its product mix.
Chief Executive Wael Sawan assumed leadership in January 2023, pledging to overhaul Shell’s strategy to prioritize higher-margin projects, maintain oil output, and expand natural gas production.
“In line with this shift to prioritising value over volume in power, we will focus on select markets and segments. This includes selling more power to commercial customers and less to retail customers,” Shell said.
“Given this focus on value, we expect lower total growth of power sales to 2030, which has led to an update to our net carbon intensity target,” Sawan added.
Shell has additionally unveiled a new “ambition” to decrease customers’ emissions from utilising its oil products by 15-20% by 2030, compared to the levels recorded in 2021.
