SHELL SETS NEW TARGET TO HALVE SCOPE 1 AND 2 ABSOLUTE EMISSIONS, COMPLEMENTING EXISTING CLIMATE GOALS
October 28 2021 - 2:01AM
Royal Dutch Shell plc (Shell) today announces an absolute
emissions reduction target of 50% by 2030, compared to 2016 levels
on a net basis. This covers all scope 1 and 2 emissions under
Shell’s operational control and is another strategic milestone on
our path to becoming a net-zero emissions energy business by 2050,
in step with society.
As we play our part in the energy transition, this additional
target forms part of our Powering Progress strategy along with our
goals to generate shareholder value, respect nature and power
lives. This follows ongoing stakeholder engagement since our Annual
General Meeting (AGM).
It is also an important step as we rise to meet the challenge of
the Dutch Court’s ruling for our scope 1 and 2 emissions, which
Shell expects to meet by 2030. Our 2022 business plan will reflect
this new target, which we are committed to delivering regardless of
whether we win or lose our appeal against the ruling.
Shell also committed to bringing forward its target to eliminate
routine gas flaring from its Upstream operated assets from 2030 to
2025.
The company’s Powering Progress strategy, announced in February
2021, provides the capital expenditure and financial return profile
outlook for each of Shell’s businesses and the Group. There
is no material change expected in these profiles, as the strategy
provides the levers necessary to achieve the targets announced
today. Any further updates will be provided as part of our
Energy Transition Strategy update at the AGM.
Cautionary Note
The companies in which Royal Dutch Shell plc
directly and indirectly owns investments are separate legal
entities. In this release “Shell”, “Shell Group” and “Group” are
sometimes used for convenience where references are made to Royal
Dutch Shell plc and its subsidiaries in general. Likewise, the
words “we”, “us” and “our” are also used to refer to Royal Dutch
Shell plc and its subsidiaries in general or to those who work for
them. These terms are also used where no useful purpose is served
by identifying the particular entity or entities. ‘‘Subsidiaries’’,
“Shell subsidiaries” and “Shell companies” as used in this release
refer to entities over which Royal Dutch Shell plc either directly
or indirectly has control. Entities and unincorporated arrangements
over which Shell has joint control are generally referred to as
“joint ventures” and “joint operations”, respectively.
Entities over which Shell has significant influence but neither
control nor joint control are referred to as “associates”. The term
“Shell interest” is used for convenience to indicate the direct
and/or indirect ownership interest held by Shell in an entity or
unincorporated joint arrangement, after exclusion of all
third-party interest.
Shell’s operating plan, outlook and budgets are
forecasted for a ten-year period and are updated every year. They
reflect the current economic environment and what we can reasonably
expect to see over the next ten years. Accordingly, Shell’s
operating plans, outlooks, budgets and pricing assumptions do not
reflect our net-zero emissions target. In the future, as society
moves towards net-zero emissions, we expect Shell’s operating
plans, outlooks, budgets and pricing assumptions to reflect this
movement.
This release contains forward-looking statements
(within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995) concerning the financial condition, results of
operations and businesses of Shell. All statements other than
statements of historical fact are, or may be deemed to be,
forward-looking statements. Forward-looking statements are
statements of future expectations that are based on management’s
current expectations and assumptions and involve known and unknown
risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or
implied in these statements. Forward-looking statements include,
among other things, statements concerning the potential exposure of
Shell to market risks and statements expressing management’s
expectations, beliefs, estimates, forecasts, projections and
assumptions. These forward-looking statements are identified by
their use of terms and phrases such as “aim”, “ambition”,
‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’,
‘‘goals’’, ‘‘intend’’, ‘‘may’’, “milestones”, ‘‘objectives’’,
‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’,
“schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar
terms and phrases. There are a number of factors that could affect
the future operations of Shell and could cause those results to
differ materially from those expressed in the forward-looking
statements included in this release, including (without
limitation): (a) price fluctuations in crude oil and natural gas;
(b) changes in demand for Shell’s products; (c) currency
fluctuations; (d) drilling and production results; (e) reserves
estimates; (f) loss of market share and industry competition; (g)
environmental and physical risks; (h) risks associated with the
identification of suitable potential acquisition properties and
targets, and successful negotiation and completion of such
transactions; (i) the risk of doing business in developing
countries and countries subject to international sanctions; (j)
legislative, judicial, fiscal and regulatory developments including
regulatory measures addressing climate change; (k) economic and
financial market conditions in various countries and regions; (l)
political risks, including the risks of expropriation and
renegotiation of the terms of contracts with governmental entities,
delays or advancements in the approval of projects and delays in
the reimbursement for shared costs; (m) risks associated with the
impact of pandemics, such as the COVID-19 (coronavirus) outbreak;
and (n) changes in trading conditions. No assurance is provided
that future dividend payments will match or exceed previous
dividend payments. All forward-looking statements contained in this
release are expressly qualified in their entirety by the cautionary
statements contained or referred to in this section. Readers should
not place undue reliance on forward-looking statements. Additional
risk factors that may affect future results are contained in Royal
Dutch Shell plc’s Form 20-F for the year ended December 31, 2020
(available at www.shell.com/investor and www.sec.gov). These risk
factors also expressly qualify all forward-looking statements
contained in this release and should be considered by the
reader. Each forward-looking statement speaks only as of the
date of this release, October 28, 2021. Neither Royal Dutch Shell
plc nor any of its subsidiaries undertake any obligation to
publicly update or revise any forward-looking statement as a result
of new information, future events or other information. In light of
these risks, results could differ materially from those stated,
implied or inferred from the forward-looking statements contained
in this release.
The contents of websites referred to in this
release do not form part of this release.
We may have used certain terms, such as
resources, in this release that the United States Securities and
Exchange Commission (SEC) strictly prohibits us from including in
our filings with the SEC. Investors are urged to consider
closely the disclosure in our Form 20-F, File No 1-32575, available
on the SEC website www.sec.gov.
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