Shell unveils plans to become net-zero emissions energy provider

The Anglo-Dutch oil giant said it had already reached its oil production peak in 2019, while carbon emissions hit their highest level in 2018, at 1.7 gigatonnes per annum.

The focus now is on becoming a "material, low-carbon business of significant scale” by the early 2030s, as it looks to reduce emissions from both its own products and products from other producers that Shell sells to customers. It aims to be net-zero by 2050.

Steps include accessing an additional 25m tonnes of carbon, capture and storage capacity by 2035; using nature-based solutions to offset emissions of around 120m tonnes a year by 2030; and developing industry-wide standards.

The remuneration of more than 16,500 staff will be linked to reducing carbon intensity, by 6-8% initially, in 2023, before rising gradually to 100% by 2050.

Ben van Beurden, chief executive, said: "Our accelerated strategy will drive down carbon emissions and will deliver value for our shareholders, our customers and wider society.

"We must give our customers the products and services they want and need: products that have the lowest environmental impact. At the same time, we will use our established strengths to build on our competitive portfolio as we make the transition to be a net-zero emissions business in step with society."

Annual investment is expected to be $5bn-$6bn, while divestments will be around $4bn annually.

Shell also committed to cut net debt to $65bn, after which it will target total shareholder distributions of 20%-30% of cash flow from operations. It also wants increase dividends per share by around 4% per year.

Near-term annual cash capital expenditure is expected to be retained at around $19bn to $22bn.

The Energy Transition Plan, which will be put before shareholders at the 2021 for an advisory vote, will be updated every three years.