Shell to implement climate targets after investor approval

Shell aims 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 the short term Shell will set the target each year, for the following three- or five-year period. The target setting process will start from 2020 and will run to 2050.

The company’s plans have been approved by shareholders and released them in a joint statement developed with institutional investors on behalf of Climate Action 100+, an initiative led by shareholders with more than $32trn in assets under management.

“Meeting the challenge of tackling climate change requires unprecedented collaboration and this is demonstrated by our engagements with investors,” said Shell chief executive Ben van Beurden. “We are taking important steps towards turning our Net Carbon Footprint ambition into reality by setting shorter-term targets. This ambition positions the company well for the future and seeks to ensure we thrive as the world works to meet the goals of the Paris Agreement on climate change.”

Anne Simpson, the inaugural chair of the Climate Action 100+ Steering Committee and director of Board Governance and Strategy at the California Public Employees’ Retirement System (CalPERS) said: “The commitment by Shell to fully respond to the engagement shows the value of dialogue and global partnership to deliver on the goals of the Paris Agreement on climate change. Shell is setting the pace, and we look forward to other major companies following its lead.”