In 2021, we linked the pay of more than 16,500 staff to our target to reduce the carbon intensity of our energy products by 6-8% by 2023, compared with 2016.
Driving action through remuneration
Progress in the energy transition key performance indicators was considered as part of the 2021 annual bonus scorecard (15% weighting) applying to almost all of Shell’s employees, as well as the 2021 Performance Share Plan awards (10% weighting) for around 16,500 employees and the 2021 Long-term Incentive Plan awards (20% weighting) for senior executives. The 2021 annual bonus scorecard also included a 15% weighting based on safety performance.
From 2022, we will widen the scope of the progress in the energy transition measure on the annual bonus scorecard, to be based on three key themes: selling lower-carbon products, reducing our emissions and partnering to decarbonise. To emphasise the importance of becoming increasingly customer-led, we will also introduce a new customer excellence measure under operational excellence. In the 2022 Long-term Incentive Plan, we have further refined the energy transition performance condition to avoid duplication of the measures incorporated into the scorecard.