Scope 1, Scope 2 and Scope 3 emissions and related risks
In assessing progress against our target to be a net-zero emissions energy business by 2050, we report our performance against our Scope 1 and 2, and Scope 3 emissions.
See "Climate-related risks and opportunities identified by Shell over the short, medium and long term"
Shell's absolute emissions in 2023
In 2023, our total combined Scope 1 and 2 absolute GHG emissions (from assets and activities under our operational control) were 57 million tonnes on a carbon dioxide equivalent basis (CO2e), a 2% reduction compared with 2022, and a 31% reduction compared with 2016, the base year for our target. Scope 3 emissions associated with our energy product sales were 1,147 million tonnes CO2e.
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million tonnes of CO2e |
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Scope |
Reporting boundary |
2023 |
2022 |
2021 |
2016 |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Scope 1 [A] |
operational control |
50 |
51 |
60 |
72 |
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Scope 2 [B] |
operational control |
7 |
7 |
8 |
11 |
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Scope 3 [C] |
equity |
1,147 |
1,174 |
1,299 |
1,545 |
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Drivers of Scope 1 and 2 emissions
Our direct GHG emissions (Scope 1, operational control boundary) decreased from 51 million tonnes of carbon dioxide equivalent (CO2e) in 2022 to 50 million tonnes CO2e in 2023, driven by several factors including:
- divestments in 2022 (e.g. Deer Park and Mobile refinery, Tunisia Miskar concession, offshore Baram Delta Operations (BDO) PSC and Block SK307 PSC in the Philippines) and handover of operations in OML 11 in Nigeria in 2022;
- unplanned downtime (e.g. Deer Park Chemicals);
- reduced flaring from assets including Shell Nigeria Exploration and Production Company (SNEPCo);
- reduction activities (see examples in the list of energy efficiency projects below) and purchase of renewable electricity.
These decreases were partly offset by Shell Polymers Monaca having more units online in 2023 and higher emissions from Pearl and Prelude with increased production.
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Million tonnes |
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|---|---|---|---|---|---|---|
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2023 |
2022 |
2021 |
2016 |
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Total hydrocarbons flared in routine flaring |
0.1 |
0.1 |
0.2 |
1.1 |
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Total routine flaring from our upstream oil and gas assets remained relatively stable in 2023 compared with 2022 at 0.1 million tonnes, having reduced from 1.1 million tonnes in 2016.
Around 50% of total routine and non-routine flaring in our Integrated Gas and Upstream facilities in 2023 occurred in assets operated by the Shell Petroleum Development Company of Nigeria Limited (SPDC) and SNEPCo.
On January 16, 2024, Shell reached an agreement to sell SPDC to Renaissance, a consortium of five companies, subject to approvals by the Federal Government of Nigeria and other conditions. SPDC will continue to operate the SPDC joint venture (SPDC JV [A]) on behalf of all the joint-venture partners, who together will continue to make decisions relating to work programmes for the SPDC JV's assets and infrastructure. This includes work programmes to eliminate routine flaring.
[A] The SPDC JV comprises SPDC Ltd (30%), the government-owned NNPC (55%), Total Exploration and Production Nigeria Ltd (10%) and Nigeria Agip Oil Company Ltd (5%).
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|
2023 |
2022 |
2021 |
2016 |
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|---|---|---|---|---|---|---|---|---|---|---|---|
Methane emissions intensity – assets with marketed gas [A] |
% |
0.05% |
0.05% |
0.06% |
0.10% |
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Methane emissions intensity – assets without marketed gas [B] |
% |
0.001% |
0.01% |
0.01% |
0.03% |
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Methane emissions [C] |
thousand tonnes |
41 |
40 |
55 |
138 |
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Our target to keep methane emissions intensity below 0.2% was met in 2023 with Shell's overall methane emissions intensity at 0.05% for facilities with marketed gas and 0.001% for facilities without marketed gas.
In 2023, Shell's total methane emissions were 41 thousand tonnes compared with 40 thousand tonnes in 2022. The increase was due to venting (e.g. the maintenance of our Floating LNG Prelude asset and operational issues in assets operated by Sarawak Shell Berhad) and an increase in reported emissions from integrated gas assets in Canada resulting from the adoption of enhanced source-level measurements in line with The Oil and Gas Methane Partnership (OGMP) reporting requirements.
We believe our methane emissions are quantified according to industry best practice. Methane emissions include those from unintentional leaks, venting and incomplete combustion, for example in flares and turbines.
Scope 1 & 2 – performance [A, B]
million tonnes carbon dioxide equivalent (CO2e)
[B] Figures disclosed are rounded. The split between Scope 1 and 2 may not add up to the total due to rounding.
[C] Other covers Renewables and Energy Solutions, Marketing, P&T and Real Estate.
Our indirect GHG emissions associated with imported energy (Scope 2, operational control boundary) remained flat at 7 million tonnes CO2e in 2023 (using the market-based method), compared with 2022.
Drivers of absolute Scope 1 and 2 emissions change
Scope 1 and Scope 2 GHG emissions changes from 2016 to 2022 and from 2022 to 2023
million tonnes carbon dioxide equivalent (CO2e)
[B] In addition to reductions from GHG abatement and energy efficiency projects, this category also includes reductions from shutdowns and conversion of existing assets.
[C] Excludes 6.8 million tonnes of CO2 captured and sequestered by the Shell-operated Quest CCS facility in Canada in 2016-2022.
[D] Excludes 1.0 million tonnes of CO2 captured and sequestered by the Shell-operated Quest CCS facility in Canada in 2023.
[E] Of the 1,081 thousand tonnes of reduction activities and purchased renewable electricity in 2023, around 200 thousand tonnes related to purchased renewable electricity.
[F] Change in output relates to changes in production levels, including those resulting from shutdowns and turnarounds as well as production from new facilities.
