Shell has continued to move towards becoming a net zero company, according to its latest Energy Transition Progress Report 2022. The company noted in its statement that it has once again met its climate targets as part of its energy transition strategy.
“In this report, we show the progress we have made towards becoming a net-zero energy business by 2050 as we continue to supply the vital energy the world needs during a time of great volatility,” said Wael Sawan, chief executive of Shell. official “I am particularly proud of the progress we have made in reducing carbon emissions from our operations, with a 30 percent reduction by the end of 2022 compared to 2016 on a net basis.”
By the end of 2022, the net carbon intensity of energy products sold by Shell had also fallen by 3.8 percent, compared to 2016, according to the company’s statement. Shell’s analysis, using data from the International Energy Agency, shows that the net carbon intensity of the global energy system fell by about 2 percent during that time.
In its strategic energy transition path, Shell has invested significantly in LNG, which the company expects to remain an important part of the energy mix for many years, in part because of its role in reducing emissions from power generation and transportation.
Other steps include Shell’s $1.6 billion investment in Indian renewable energy developer Sprng Energy and the final decision to invest in the Holland Hydrogen 1 project in the Netherlands, which will be the largest renewable hydrogen plant in ‘Europe,’ says the statement.
In 2022, Shell also acquired Denmark’s Nature Energy, which produces renewable natural gas, for about $2 billion. That deal was completed in early 2023, the company recalled.
Shell also increased the number of electric vehicle charging points it owned or operated worldwide by 62 percent to about 139,000 by 2022, up from 86,000 the previous year.
“We believe the progress we have made in line with our energy transition strategy has benefited our customers, our shareholders and society as a whole,” said Andrew Mackenzie, chairman of Shell.
This progress comes at a time when the energy system still faces challenges, as high energy prices continue to contribute to a cost-of-living crisis for many people. These challenges have highlighted the need for a balanced energy transition – one in which the world achieves net zero emissions, while providing a secure and affordable energy supply, Shell’s statement said.
Shell’s energy transition strategy was put to a consultative vote by shareholders at its 2021 Annual General Meeting, where it won 89 percent of the vote, the company recalled. At the 2022 AGM, nearly 80 percent of shareholders who voted supported the company’s progress in implementing this strategy.
The 2022 report will also be voted on at the next AGM on 23 May 2023.
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