Oil giant Shell has said it is making good progress on its journey to net zero.
The company has published its Energy Transition Progress Report 2022, which states Shell has met its climate targets as part of its energy transition strategy.
The report will be put to shareholders for an advisory vote at Shell’s annual general meeting on May 23.
“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 Chief Executive Officer.
"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."
Energy products
By the end of 2022, the net carbon intensity of the energy products sold by Shell had 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 company wrote.
The report highlights the steps that Shell has taken to advance its energy transition strategy.
These include investments in liquefied natural gas (LNG), which Shell expects to remain a part of the energy mix for "many years to come", the company said, partly because of its role in reducing emissions from power generation and transport.
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.
Other steps include Shell's $1.6 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. This deal was completed at the beginning of 2023.
Shell said it also increased the number of electric vehicle charge points it owned or operated worldwide by 62% to around 139,000 in 2022, up from 86,000 the previous 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."
Shell’s energy transition strategy was put to an advisory shareholder vote at its 2021 annual general meeting, where it secured 89% of the vote.
At the 2022 AGM, almost 80% of shareholders who voted supported Shell's progress in implementing this strategy.
