Shell Plc moderated the pace of its near-term emissions cuts, while maintaining the ambition of becoming a net zero company by 2050.
The oil and gas giant now aims to reduce its net carbon intensity by 15 percent to 20 percent by 2030, compared with a previous target of 20 percent, according to its latest energy transition strategy update published on Thursday.
Shell’s change is the latest sign that European oil majors are adjusting their plans for the transition to net zero carbon emissions. BP Plc last year said it would pump more oil and gas and producing more emissions this decade than previously planned.
Shell first unveiled its ambition to become a net zero company in 2020, under then-CEO Ben van Beurden. The company said at the time that it would eliminate all net emissions from its own operations and the bulk of greenhouse gases from the fuel it sells to customers by 2050.
A year later, Shell provided further details, mapping out the steps to reach net zero by mid-century. It also said it would revise its energy transition plan every three years and seek a non-binding, advisory vote on progress toward its targets every year.
Under Sawan, who took over from Van Beurden last year, Shell has pledged to reduced operating costs by as much as $3 billion by the end of 2025. It also plans to review its assets and drive up returns in a bid to narrow the valuation gap with US peers Exxon Mobil Corp. and Chevron Corp. Sawan abandoned a target to cut oil production by 1 percent to 2 percent annually.
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