Delivering our climate targets
Working with our customers and across sectors to accelerate the transition to net-zero emissions.
- Our climate target is to become a net-zero emissions energy business by 2050, in step with society's progress in achieving the goal of the UN Paris Agreement on climate change.
- We have set targets to reduce the carbon intensity (Net Carbon Footprint) of the energy products we sell. This includes short-term targets of 3-4% by 2022, 6-8% by 2023 and 9-12% by 2024 (compared with 2016). It also includes medium- and long-term targets of 20% by 2030, 45% by 2035, and 100% by 2050 (compared with 2016), in step with society.
- In October 2021, we announced an absolute emissions reduction target of 50% by 2030, compared with 2016 levels on a net basis. This new target covers all Scope 1 and 2 emissions under Shell’s operational control and complements our existing carbon-intensity targets.
Net carbon intensity
Shell’s net carbon intensity (NCI) provides an annual measure of the life-cycle emissions intensity of the portfolio of energy products sold. It is the average intensity, weighted by sales volume, of the energy products sold by Shell. It is tracked, measured and reported using the Net Carbon Footprint (NCF) methodology.
Shell’s net carbon intensity in 2021 was 77 gCO2e/MJ. Although this is a 2.7% increase from the previous year, it represents a 2.5% reduction from the 2016 reference year, which means that we achieved our first short-term target of a 2-3% reduction in NCI by the end of 2021.
The increase in Shell’s net carbon intensity in 2021 is largely due to the introduction of an improved approach for the estimation of the emissions intensity of power sold by Shell. The new approach is based on categorising power sales as certified renewable; own generation or power purchase agreement; or power purchased from the grid. Intensities are then assigned to each power sales category allowing a better estimation of the overall intensity of power sold by Shell.
We have received third-party limited assurance on our carbon intensity, measured and reported using the Net Carbon Footprint methodology, for the period 2016 to 2021. Limited assurance means nothing has come to the auditor’s attention that would indicate that the greenhouse gas data and information as presented in the Greenhouse Gas Statement were not materially correct.
Read more about our Net Carbon Footprint methodology at www.shell.com/ncf.
Absolute emissions reduction performance
In 2021, our total combined Scope 1 and 2 absolute greenhouse gas emissions (from assets and activities under our operational control) were 68 million tonnes on a CO₂ equivalent basis, a 4% reduction compared with 2020, and an 18% reduction compared with 2016, the base year. Our Scope 3 emissions from energy products included in our net carbon intensity were 1,299 million tonnes CO₂e.