In 2022, we linked the pay of more than 16,500 staff to our target to reduce the carbon intensity of our energy products by 9-12% by 2024, compared with 2016.
Performance indicators related to Shell’s journey in the energy transition were part of the 2022 annual bonus scorecard (15% weighting), which applies to almost all of Shell’s employees. Energy transition performance indicators were also part of the 2022 Performance Share Plan awards (10% weighting) for around 16,500 employees and the 2022 Long-term Incentive Plan awards (20% weighting) for senior executives.
From 2022, the scope of the "Shell’s journey in the energy transition" measure in the annual bonus scorecard has been broadened to equally measure:
- selling lower-carbon products: the proportion of adjusted earnings in our Marketing segment coming from lower-carbon energy products, as well as non-energy products and convenience retail;
- reducing our operational emissions: greenhouse gas abatement projects that reduce our Scope 1 and 2 operational emissions; and
- partnering to decarbonise: progress in rolling out electric vehicle charge points.
We also introduced a customer excellence measure on the annual bonus scorecard to emphasise the importance of building stronger customer relationships in the energy transition.
The annual bonus scorecard also includes a 15% weighting based on safety performance.
Our Long-term Incentive Plan (LTIP) and Performance Share Plan tie pay for around 16,500 employees directly to achieving our strategic ambitions for the energy transition. This element, vested at 180% of target based on performance to the end of 2022, reflects our progress in transitioning towards a lower-carbon future. The weight of this metric will be increased from 20% to 25% for the most senior employees for the upcoming LTIP cycle (2023-25).
Read more about remuneration in our 2022 Annual Report.