Story at a glance
- Shell pledged to hit net-zero emissions by 2050.
- It intends to rebalance its financial investments to further sustainable initiatives.
Major oil company Shell made an announcement on Thursday committing to its company-wide initiative to become a net-zero carbon producer.
In the press release, officials said that Shell’s carbon emissions and oil production have both already peaked in 2018 and 2019, respectively.
“Our accelerated strategy will drive down carbon emissions and will deliver value for our shareholders, our customers and wider society,” said Shell Chief Executive Officer, Ben van Beurden. “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.”
The company’s long-term plan primarily centers around financial sustainability in its transition to clean energy operations. Increasing shareholder dividends and reducing net debt are two key pillars.
Rebalancing the company’s investment portfolio is also critical. In the short term, Shell aims to invest about $21 billion to $23 billion in departments that will spearhead its sustainability initiatives.
Regarding its plan to cut carbon emissions, the company plans to eliminate 6 to 8 percent of emissions from its operations by 2023, and usher it to 20 percent by 2030, 45 percent by 2035 and a full 100 percent by 2050 from its 2016 baseline.
It will also follow the guidelines of the global Paris Agreement to limit the global temperature rise to 1.5 degrees Celsius.
Other oil companies, including Exxon and BP, have made progress in investing in sustainable or cleaner energy, with mitigating emissions and transitioning to a low-carbon business model as two of the main promises.
changing america copyright.
