Shell PLC SHEL disclosed its first energy transition update since its Powering Progress strategy launched in 2021.
The oil giant stated that they have achieved more than 60% of the target to halve emissions from its operations (Scope 1 and 2) by 2030 vs. 2016 on a net basis.
The company also lowered the net carbon intensity of the energy products it sells by 6.3% compared to 2016, the third consecutive year of hitting the target.
Shell has set a new ambition to reduce customer emissions from the use of its oil products by 15-20% by 2030 compared with 2021 and against its previous target of 20%.
Related: Shell Ponders Slowing Carbon-Cut Targets Amid Energy Strategy Revamp: Report
Acknowledging uncertainty in the pace of change in the energy transition, the company has also chosen to retire its 2035 target of a 45% reduction in net carbon intensity.
The company reiterated the investment of $10 billion-$15 billion between 2023-2025 in low-carbon energy solutions.
The investments comprise storage, electric vehicle charging, hydrogen, carbon capture, biofuels and renewable power.
Notably, in 2023, Shell invested $5.6 billion in low-carbon solutions, accounting for over 23% of the total capital spending.
Related: Shell Ponders Slowing Carbon-Cut Targets Amid Energy Strategy Revamp: Report
“We believe this focus makes it more, not less, likely that we will achieve our climate targets. By providing the different kinds of energy the world needs, we believe we are the investment case and the partner of choice through the energy transition,” said Wael Sawan, Chief Executive Officer.
Price Action: SHEL shares are up 0.26% at $65.88 premarket on the last check Thursday.
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