Shell aims to reduce its net carbon footprint by around half by 2050 and by around 20 percent by 2035 as part of efforts to meet the goals of the Paris Agreement, the energy giant announced Monday.
The announcement was made in a joint statement with a group of institutional investors on behalf of the global investor initiative, Climate Action 100+.
Climate Action 100+ is a five-year initiative led by investors to engage systemically important greenhouse gas emitters and other companies across the global economy that have significant opportunities to drive the clean energy transition and help achieve the goals of the Paris Agreement. To date, 310 investors with more than $32 trillion in assets under management have signed up to the initiative.
'To operationalize this long-term ambition [of reducing net carbon footprint], Shell will start setting specific Net Carbon Footprint targets for shorter-term periods (three or five years),' the statement said.
The target will be set each year for the next three- or five-year period, and the target setting process will start from 2020 and will run to 2050, it added.
According to the statement, Shell will publish an annual update on its progress towards lowering its net carbon footprint.
The company will also seek third-party assurance of its reported net carbon footprint and assurance statements will be published on its website.
'Shell will also continue to work closely with reputable institutions, such as the Transition Pathway Initiative (TPI), to help in their assessment of Shell's progress,' it said.
According to the statement, every five years, Shell will review the updated Nationally Determined Contributions in line with the Paris Agreement mechanism, the updated scenarios on decarbonization trajectories and any other developments to assess societal progress in the energy transition.
'The outcome of this review will be used to calibrate Shell’s ambition and pace of change in line with that of society. The first such review is currently anticipated to take place after 2022,' it said.
Shell plans to link these targets and other measures to its executive remuneration policy. The revised remuneration policy will be put to shareholders for approval at the company's Annual General Meeting in 2020.
By Hale Turkes
Anadolu Agency
energy@aa.com.tr