65
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.