Royal Dutch Shell plc Responsible Investment Annual Briefing Updates
April 16 2020 - 2:01AM
UK Regulatory
TIDMRDSA TIDMRDSB
April 16, 2020
Royal Dutch Shell plc (Shell) will today update investors on plans to
become a net-zero emissions energy business by 2050 or sooner (covering
scope one, two and three emissions). The detailed steps, to be outlined
at Shell's Responsible Investment Annual Briefing today, will include:
-- An ambition to be net zero on all the emissions from the manufacture of
all our products (scope one and two) by 2050 at the latest;
-- Accelerating Shell's Net Carbon Footprint ambition to be in step with
society's aim to limit the average temperature rise to 1.5 degrees
Celsius in line with the goals of the Paris Agreement on Climate Change.
This means reducing the Net Carbon Footprint of the energy products Shell
sells to its customers by around 65% by 2050 (increased from around 50%),
and by around 30% by 2035 (increased from around 20%);
-- A pivot towards serving businesses and sectors that by 2050 are also
net-zero emissions.
"With the COVID-19 pandemic having a serious impact on people's health
and our economies, these are extraordinary times. Yet even at this time
of immediate challenge, we must also maintain the focus on the long term,
" said Ben van Beurden, Chief Executive Officer of Royal Dutch Shell.
"Society's expectations have shifted quickly in the debate around
climate change. Shell now needs to go further with our own ambitions,
which is why we aim to be a net-zero emissions energy business by 2050
or sooner. Society, and our customers, expect nothing less."
"This announcement significantly increases Shell's ambitions and
commitments," said Adam Matthews, Director of Ethics and Engagement of
the Church of England Pensions Board, Board Member of the Institutional
Investors Group on Climate Change, and Co-lead as part of the Climate
Action 100+ dialogue with Shell. "It is indicative of Shell's confidence
in not only navigating the immediate situation but rightly sets the
focus on developing net-zero pathways in key sectors that shape the
demand for energy. Ultimately, it will be by developing and supporting
net-zero pathways in these sectors that we will achieve the goals of the
Paris Agreement."
Peter Ferket, Chief Investment Officer of Robeco, Co-lead as part of the
Climate Action 100+ dialogue with Shell, said: "These new ambitions
build on the 2018 joint statement between Shell and Climate Action 100+.
It proves that the strong and committed engagement of institutional
investors with Shell can help accelerate the pace of change to deliver
the goals of the Paris Agreement. It raises the bar and sets out an
approach for others in the oil and gas sector to follow."
Link here for more details on Shell's climate ambitions
https://www.globenewswire.com/Tracker?data=wrMHaNfy6tN_dAduAvrbCjLxDwZ_0VkJOMHJx72uRHSXsO7lPtO-jPUBpvQ_8hqGHg6SWPlrf59fBL8qcXQ9hEb6pV-Hh4bm_h-1ulYlclQK4lTJ3Lued_VzFH8oAeEJ
www.shell.com/netzeroambition
Also published today is an update to the 2019 Industry Associations
Climate Review, available here
https://www.globenewswire.com/Tracker?data=wrMHaNfy6tN_dAduAvrbCuxwT6qtVWvskevR6jB6cpdt5lHFUUwFaLiBdxBWLJs7PGSX3Fy7BX-9tBHkNiGPAn848L-W4LOnW7nQYn4eAbg=
www.shell.com/advocacy
Enquiries:
Investor Relations
International: +31 70 377 4540
North America: +1 832 337 2034
Media Relations
International: +44 207 934 5550
US: +1 832 337 4355
Notes to editors:
1. In 2017, Shell was the first international oil and gas company to set the
ambition to reduce the Net Carbon Footprint of the energy products it
sells, expressed as a measure of carbon intensity, taking into account
their full life-cycle emissions. Shell aimed to reduce the Net Carbon
Footprint of its energy products by around half by 2050, and by around
20% by 2035, in step with society's drive to meet the goals of the Paris
Agreement. In 2018, with unprecedented levels of collaboration with
investors, Shell announced its intention to build on that long-term
ambition with the commitment to setting specific Net Carbon Footprint
targets for shorter periods, of three or five years, linking them to
executive remuneration. In early 2019 Shell set an unconditional
three-year target (to 2021) to reduce its Net Carbon Footprint by 2% to
3% compared to 2016, linked to senior executive remuneration. For the
2020 unconditional three-year target (to 2022) the target range is a 3-4%
reduction in its Net Carbon Footprint against the 2016 baseline, linked
to remuneration for more than 16,500 staff. It is intended that this
target setting will be done annually, with each year's target covering a
three-year period.
2. Shell will track and report on progress in achieving both the aim to
reduce the Net Carbon Footprint of the energy products it supplies, as
well as progress towards achieving net-zero emissions from its
operations. Shell will also work to develop a method for tracking and
reporting emission reduction by its customers. Tracking and reporting the
reduction of customer emissions will require the development of
appropriate accounting methodologies and frameworks.
3. As of today, Shell's operating plans and budgets do not reflect these
newly announced ambitions. Shell's aim is that, in the future, its
operating plans and budgets will change to reflect this movement towards
its new net-zero emissions ambition. These plans and budgets need to be
in step with the movement towards a net-zero emissions economy within
society and among Shell's customers.
4. Shell is assisting customers, communities and colleagues in a number of
ways in response to COVID-19. Steps include enhanced health and safety
measures at all our retail sites globally, and free food and drink at
more than 15,000 retail sites across 30 countries for health-care
professionals, truck drivers and delivery people. Other measures include
donating ingredients for hand-sanitising products across several
countries, including 2.5 million litres of isopropyl alcohol to the Dutch
health-care sector. To read about Shell's full response across the globe
to COVID-19, go to http://www.shell.com/covid19 www.shell.com/covid19
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 "Royal Dutch Shell" 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.
It is important to note that as of April 16, 2020, Shell's operating
plans and budgets do not reflect Shell's net-zero emissions ambition.
Shell's aim is that, in the future, its operating plans and budgets will
change to reflect this movement towards its new net-zero emissions
ambition. However, these plans and budgets need to be in step with the
movement towards a net zero emissions economy within society and among
Shell's customers.
Also, in this release we may refer to Shell's "Net Carbon Footprint",
which includes Shell's carbon emissions from the production of our
energy products, our suppliers' carbon emissions in supplying energy for
that production and our customers' carbon emissions associated with
their use of the energy products we sell. Shell only controls its own
emissions. The use of the term Shell's "Net Carbon Footprint" is for
convenience only and not intended to suggest these emissions are those
of Shell or its subsidiaries.
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 Royal
Dutch 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 Royal
Dutch 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", "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 Royal Dutch 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, 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's Form 20-F for the year ended December 31, 2019 (available at
https://www.globenewswire.com/Tracker?data=wrMHaNfy6tN_dAduAvrbCgtIPvwwAh8ed_yM3iBaYDUMSF66kmYfbxkMT-hELAJu7EXwSxlFCVXTBV6rzM5JOy5h7h16h3nLufKMHS3nisQ=
www.shell.com/investor and
https://www.globenewswire.com/Tracker?data=wrMHaNfy6tN_dAduAvrbCoYoG0sxzhNMHHCF0wwUXNaG8MjxiHshhSElS0m8hC9oDvTQFk112nHKdos2mx6NSA==
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, April 16, 2020. 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.
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.
(END) Dow Jones Newswires
April 16, 2020 02:01 ET (06:01 GMT)
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