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Key takeaways
- Shell has moderated its near-term carbon emission cut ambitions, targeting a 15-20% reduction by 2030, versus a 20% target previously.
- The company’s decision to moderate the pace of carbon emissions cuts is in line with that of peers such as BP.
- Shell maintained its long-term pledge to become net zero by 2050.
Shell (SHEL) has moderated its plans for near-term emissions cuts, according to a strategy update released Thursday by the oil giant.
“Our focus on where we can add the most value has led to a strategic shift in our integrated power business,” Shell said, explaining its decision to slow the pace of emissions.
In its latest update on its long-term plan for clean energy and greenhouse gas emissions, the company said it is now targeting a “15-20% reduction by 2030 in the net carbon intensity of the energy products” it sells from levels in 2016, against its previous 20% target.
Net carbon intensity measures emissions from each unit of energy a company sells to customers.
Shell’s slowing of the pace of its carbon emissions cuts is in line with its peers, who are also watering down previous goals. U.K. rival BP (BP) reportedly is targeting a 20% to 30% emissions reduction by the end of this decade, down from an initial 35% to 40% goal.
Shell, however, reiterated its goal of becoming a net-zero company by 2050, a target made under former CEO Ben van Beurden in 2020. BP, too, is planning to become a net-zero company by mid-century.
Shares of Shell were 0.8% lower at $65.22 per share at around 11:15 a.m. ET Thursday. They’ve gained about 10% over the past year.