Our greenhouse gas emissions

We report our greenhouse gas (GHG) emissions in line with the recommendations of the Intergovernmental Panel on Climate Change. Shell’s Health, Safety, Security, Environment and Social Performance (HSSE&SP) Control Framework defines standards and accountabilities at each level of the organisation, and sets out the procedures people are required to follow. For example, our environmental standards include the requirement to set up GHG and energy management plans.

Our performance

Direct greenhouse gas emissions

million tonnes CO₂ equivalent

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The direct GHG emissions from facilities that we operate were 70 million tonnes on a CO₂-equivalent basis in 2016, down from 72 million tonnes of CO₂ equivalent in 2015.

Our 2015 base year GHG emissions were recalculated from 72 million to 76 million tonnes CO₂ equivalent to reflect the impact of the former BG facilities and other structural changes. Therefore, on a like-to-like basis, the direct GHG emissions have decreased from 76 million tonnes in 2015 to 70 million in 2016.

Our overall GHG emissions decreased for the following reasons:

• overall reduction in flaring;
• Quest carbon capture and storage project in Canada’s oil sands safely injecting more than 1 million tonnes of CO₂ per year;
• divestments, for example in Nigeria and the UK; and
• operational improvements across many facilities;

These decreases were partially offset by the inclusion of emissions from former BG facilities in our inventory as of February 1, 2016.

In 2016, around 45% of our GHG emissions came from the refineries and chemical plants in our Downstream business. The production of oil, gas and gas-to-liquids products accounted for slightly more than 50% of our GHG emissions, and our shipping activities for less than 2%. We continue to work on improving operational performance and energy efficiency to manage GHG emissions.

GHG movements from 2015 to 2016 [A]

million tonnes CO₂ equivalent

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[A] Direct and energy indirect greenhouse gas emissions.
Numbers have been rounded so some totals may not agree exactly.

The indirect GHG emissions from the energy that we purchased (electricity, heat and steam) increased to 11 million tonnes on a CO₂-equivalent basis in 2016, from 9 million tonnes in 2015, mainly due to the inclusion of former BG facilities in our portfolio. These emissions were calculated using a market-based approach, as defined by the World Resources Institute GHG Protocol.

We estimate that the CO₂ emissions from the use of our refinery and natural gas products by others were around 600 million tonnes in 2016, which represents less than 2% of the world's emissions.

(See more on www.shell.com/ghg)