Shell has published its Energy Transition Progress Report 2022, which shows it has 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 emissions energy business by 2050, as we continue to supply the vital energy the world needs during a time of great volatility," said Wael Sawan, Shell's CEO.
"I am especially proud of the progress we have made in reducing carbon emissions from our operations, with a 30% reduction by the end of 2022 compared with 2016 on a net basis."
By the end of 2022, the net carbon intensity of the energy products sold by Shell had also fallen by 3.8%, compared with 2016. Our analysis, using data from the International Energy Agency, shows the net carbon intensity of the global energy system fell by around 2% over that time.
The report highlights important steps that Shell has taken to advance its energy transition strategy. These include significant investments in liquefied natural gas (LNG), which Shell expects to remain an important part of the energy mix for many years to come, partly because of its role in reducing emissions from power generation and transport.
Other steps include Shell's $1.6 billion (€1.5 billion) investment in Indian renewable power developer Sprng Energy, and the final investment decision on the Holland Hydrogen 1 project in the Netherlands, which will be Europe’s largest renewable hydrogen plant.
In 2022, Shell also announced the acquisition of Denmark's Nature Energy, which produces renewable natural gas, for around $2 billion (€1.9 billion). This deal was completed at the beginning of this year.
Sir Andrew Mackenzie, Shell chair, said: “We believe the progress we have made in line with our energy transition strategy has been to the benefit of our customers, our shareholders and wider society.”