- Sustainability Strategy and Goals
- Technology and Innovation
- Global Partnerships and Advocacy
- Progress vs. Target Tracker
- Key Sustainability Innovations and Technologies
- Measurable Impacts
- Challenges and Areas for Improvement
- Future Plans and Long-Term Goals
- Comparisons to Industry Competitors
- What to Watch: 12 to 18 Month Indicators
Shell plc (formerly Royal Dutch Shell) is a global integrated energy company operating in more than 70 countries, producing oil, gas, LNG, chemicals, biofuels, and renewables. For 2024, the company retired its standalone Sustainability Report after 27 years and integrated sustainability disclosures into its Annual Report and Accounts, producing its first-ever Sustainability Statements section compliant with the EU’s Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS). The 2025 Annual Report (covering full-year 2025) continues this structure with Sustainability Statements on pages 335 to 425.
Shell’s overarching ambition is to become a net-zero emissions energy business by 2050, covering both its own operations (Scope 1 and 2) and the end-use of all energy products it sells. By the end of 2024, Shell had achieved 60% of its target to halve Scope 1 and 2 emissions by 2030 versus 2016, and by the end of 2025, that figure had risen to 70%.
Source
https://www.shell.com/sustainability/reporting-centre.html
https://www.shell.com/investors/results-and-reporting/annual-report.html
Sustainability Strategy and Goals
Shell’s formal strategy is published as the Shell Energy Transition Strategy, last updated in 2024, and is structured around three pillars: decarbonizing operations, reducing the carbon intensity of energy products sold, and growing low-carbon businesses. The strategy aligns with the Paris Agreement 1.5°C pathway and draws on multiple UN SDGs, particularly SDG 7 (Affordable and Clean Energy), SDG 13 (Climate Action), SDG 6 (Clean Water), SDG 8 (Decent Work), and SDG 15 (Life on Land). Shell does not hold a Science Based Targets initiative (SBTi) validation, using its own Net Carbon Intensity (NCI) methodology instead.
Net Zero and Carbon Emissions
Shell targets net-zero Scope 1 and 2 emissions from operated assets by 2050, with an intermediate milestone of halving those emissions by 2030 versus 2016. A separate NCI target tracks the carbon intensity of all energy products sold, including customer end-use emissions.
- Scope 1 and 2 absolute emissions in 2024: 58 million tonnes CO2e, down from 83 million tonnes in 2016, a 30% absolute reduction
- By end of 2024, Shell had achieved 60% of the reduction required to reach its 2030 halving target
- By end of 2025, that progress increased to 70% of the required reduction, with Scope 1 and 2 at 53 million tonnes CO2e
- Net Carbon Intensity (NCI) of energy products sold reduced by 9.0% by end-2024 versus 2016 baseline, within the 9 to 12% target range
- NCI short-term milestones all achieved consecutively: 2 to 3% by 2021, 3 to 4% by 2022, 6 to 8% by 2023, and 9 to 12% by 2024
- Long-term NCI target: 15 to 20% reduction by 2030 and 100% by 2050 versus 2016
Methane Emissions
Shell sets a specific methane intensity target for its operated oil and gas assets, distinct from broader GHG metrics, placing it among the most granular methane disclosers among major integrated oil companies.
- Overall methane emissions intensity for Shell-operated oil and gas assets with marketed gas: 0.04% in 2024, well below the 0.2% target
- Overall methane emissions intensity for Shell-operated oil and gas assets without marketed gas: 0.001% in 2024
- Shell targets near-zero methane emissions intensity from operated oil and gas assets by 2030
Routine Flaring Elimination
Shell committed to eliminating routine flaring from upstream-operated assets under the World Bank Zero Routine Flaring initiative.
- In 2024, routine flaring from upstream operations was 0.1 million tonnes and remained stable
- From January 1, 2025, Shell confirmed it had eliminated routine flaring from all upstream-operated assets, achieving this milestone ahead of many peers
- This is a verifiable, time-bound commitment met on schedule and is one of the clearest hard deliverables in Shell’s 2025 reporting
Scope 3 (Customer Emissions)
Shell is one of the few major integrated oil companies to set a formal Scope 3 Category 11 reduction ambition tied to an absolute baseline.
- Scope 3 Category 11 (customer emissions from use of oil products): 569 million tonnes CO2e in 2021 (baseline), reduced to 517 million tonnes CO2e in 2023, and a further 5% reduction in 2024 for a total reduction of 14% versus 2021
- Shell’s 2030 ambition: reduce customer oil product emissions by 15 to 20% compared with 2021
- At 14% cumulative reduction through 2024, Shell is approaching but not yet at the lower end of its 2030 ambition range
- Scope 3 NCI target: 100% reduction by 2050, covering all energy products sold
Water Stewardship
Shell manages water risks across its upstream and downstream operations with a focus on water-scarce regions and offshore produced water discharge.
- Shell embeds water efficiency goals into its Safety, Environment and Asset standards, requiring site-level water management assessments
- In 2024, Shell UK’s upstream offshore operations discharged 247 tonnes of residual oil to sea via produced water, with the Shearwater facility exceeding annual average concentration standards due to demulsifier changes in Q1 2024
- Shell’s global reporting includes a dedicated water section in its Annual Sustainability Data Supplement, tracking water use, freshwater intake, and produced water management at the asset level
Biodiversity and Nature
Shell revised its approach to biodiversity in 2024, formally embedding respect for nature into its operating standards, business processes, and supplier requirements.
- Shell’s Annual Report 2024 confirms the company continued to embed biodiversity respect into its Safety, Environment and Asset standards across all operated sites
- Shell spent approximately $42 billion on goods and services from global suppliers in 2024, with supplier selection criteria incorporating biodiversity and environmental standards
- Shell does not yet publish a formal biodiversity net gain commitment or time-bound nature-positive target, which is a gap relative to TNFD-aligned peers
Circular Economy and Waste
Shell integrates circular economy principles across its chemicals parks and lubricants operations, with particular focus on increasing reuse and recycling rates at manufacturing sites.
- Shell’s Sustainability Data Supplement tracks waste by category, including waste diverted from landfill, recycled, and sent for energy recovery at operated sites globally
- Shell operates energy and chemicals parks globally, several of which are being repurposed to increase circular feedstock use and reduce waste sent to disposal
- Shell does not operate an equivalent to ExxonMobil’s proprietary advanced recycling technology platform for plastics, and its circular economy program focuses more on industrial site-level performance than product circularity
Human Rights and Responsible Sourcing
Shell’s human rights framework draws on the UN Guiding Principles on Business and Human Rights (UNGPs) and focuses on four priority areas: labour rights, supply chains, communities, and security.
- Shell Supplier Principles include specific labour and human rights expectations, with higher-risk contractors required to complete a detailed management system assessment before contract award
- In 2024, taxes paid by Shell globally totalled $18 billion, directly supporting government-funded public services across operating jurisdictions
- Shell published its UK Modern Slavery Act Statement, Voluntary Principles on Security and Human Rights Report, and Conflict Minerals Disclosure as separate verified documents in 2024
- Shell’s November 2024 Hague Court of Appeal ruling found that Dutch tort law does not impose a specific 45% emission reduction obligation on Shell by 2030, but acknowledged the broader duty of care principle from the 2021 lower court ruling
Diversity, Equity, and Inclusion
Shell tracks and discloses gender diversity in senior leadership as part of its CSRD-aligned reporting.
- Women in Senior Leadership grew to 33% in 2024, up from prior years
- Shell publishes a UK Diversity Pay Gap Report annually, covering both gender and ethnicity pay gaps
- The company targets becoming one of the most diverse and inclusive organizations in the global energy sector as part of its long-term talent strategy
Governance and Transparency
Shell moved from voluntary standalone sustainability reporting to mandatory CSRD-aligned Sustainability Statements embedded in its Annual Report from the 2024 reporting year onward. This is the most significant governance shift in Shell’s 27-year sustainability reporting history.
- The 2024 Annual Report and Accounts includes Sustainability Statements (pages 341 to 440) prepared under ESRS, covering environment, social, and governance topics with full assurance pathways
- Shell aligns with TCFD recommendations and incorporates climate scenario analysis against IEA and IPCC pathways into its annual reporting
- Executive pay is linked to NCI performance and Scope 1 and 2 emission reduction milestones, though the specific weighting is not disclosed in the executive summary
- Shell publishes a standalone Climate and Energy Transition Lobbying Report, disclosing direct and indirect lobbying activities, a practice that few peers undertake
Source
https://www.shell.com/sustainability/reporting-centre.html
https://www.shell.com/investors/results-and-reporting/annual-report.html
https://www.scribd.com/document/848527152/Shell-Annual-Report-2024
https://www.shell.com/sustainability/people/human-rights.html
https://climatehughes.org/blog-corporate-climate-unaccountability-landmark-shell-ruling/
https://assets.publishing.service.gov.uk/media/68b9afb5cc8356c3c882ab0b/Shell_UK_AES-Final_2024.pdf
https://www.shell.com/sustainability/reporting-centre.html
https://www.shell.com/sustainability/climate.html
https://www.lse.co.uk/rns/shell-publishes-energy-transition-strategy-2024-stpbohyiwth9e5n.html
Technology and Innovation
Shell’s low-carbon technology investments focus on hydrogen, CCS, biofuels, sustainable aviation fuel (SAF), renewable power, and chemicals park repurposing.
- Shell invested up to $1 billion per year in hydrogen and CCS in 2024 and 2025, prioritizing Northwest Europe, the Middle East, and North America
- Shell operates the Quest CCS facility in Canada, the Peterhead CCS project in the UK (in development), and the Porthos CCS project in the Netherlands (final investment decision in 2023)
- Shell produces SAF at its Energy and Chemicals Park in Rotterdam, one of the largest SAF production units currently in operation
- Shell’s biofuels business includes advanced biofuel production from waste feedstocks, with partnerships supporting supply into aviation and marine sectors
- The company is repurposing several legacy refining assets into integrated energy and chemicals parks to reduce carbon intensity while maintaining industrial productivity
Source
https://www.world-energy.org/article/33728.html
https://energynews.biz/shell-commits-1-billion-to-hydrogen-and-ccs-investments/
Global Partnerships and Advocacy
Shell engages with governments, industry coalitions, customers, and civil society through formal partnerships and direct advocacy.
- Shell invested $10 to $15 billion in low-carbon energy solutions between 2023 and end of 2025, spanning renewables, EV charging, hydrogen, biofuels, and CCS
- Shell Foundation’s five-year 2023 to 2028 strategy focuses on enabling tens of millions of people to access clean energy and build economic resilience, with reporting available separately
- Shell publishes a standalone lobbying report annually, disclosing its positions on carbon pricing, emissions trading, hydrogen policy, and renewable energy regulation
Source
https://www.lse.co.uk/rns/shell-publishes-energy-transition-strategy-2024-stpbohyiwth9e5n.html
Progress vs. Target Tracker
Source
https://www.shell.com/sustainability/climate.html
https://www.shell.com/investors/results-and-reporting/annual-report.html
https://www.lse.co.uk/rns/shell-publishes-energy-transition-strategy-2024-stpbohyiwth9e5n.html
Key Sustainability Innovations and Technologies
Shell’s technology investments in 2024 and 2025 center on four commercially mature pathways: CCS infrastructure, hydrogen production and distribution, sustainable aviation fuel, and energy and chemicals park transformation.
Carbon Capture and Storage represents Shell’s most capital-intensive low-carbon technology commitment. The Porthos CCS project in the Port of Rotterdam (the Netherlands) received its final investment decision in 2023 and will store up to 2.5 million tonnes of CO2 per year from industrial emitters when operational. The Quest CCS facility in Alberta, Canada has captured and stored more than 8 million tonnes of CO2 since 2015. Shell’s Peterhead CCS project in Scotland is progressing through development stages, tied to the UK government’s Track-1 CCS cluster program.
Hydrogen receives up to $1 billion per year in capital allocation across 2024 and 2025, targeting green and blue hydrogen production for industrial, transport, and power applications in Northwest Europe and North America. Shell has operational hydrogen refueling stations in the UK, Germany, and the Netherlands and continues to develop hydrogen supply infrastructure for heavy transport.
Sustainable Aviation Fuel (SAF) production at the Rotterdam Energy and Chemicals Park represents a major low-carbon fuels infrastructure commitment. Shell’s Rotterdam plant produces SAF from waste feedstocks, supporting the growing aviation sector decarbonization mandate across the EU.
Net Carbon Footprint Methodology is Shell’s proprietary accounting system for tracking NCI, using a lifecycle approach that includes upstream supply chain emissions, operational emissions, and end-use customer emissions across all energy products sold. This methodology is independently verified and forms the basis for all NCI commitments and milestones.
- Quest CCS cumulative storage: more than 8 million tonnes CO2 since 2015
- Porthos CCS capacity: up to 2.5 Mtpa of CO2 storage when operational
- Hydrogen and CCS capital allocation: up to $1 billion per year in both 2024 and 2025
- Low-carbon energy investment: $10 to $15 billion between 2023 and end of 2025
- SAF production: Rotterdam plant operational, waste feedstock-based, aligned with EU ReFuelEU aviation mandate
Source
https://www.world-energy.org/article/33728.html
https://www.lse.co.uk/rns/shell-publishes-energy-transition-strategy-2024-stpbohyiwth9e5n.html
Measurable Impacts
Shell’s 2024 data demonstrates a consistent trajectory of absolute and intensity-based emission reductions across Scope 1, 2, and 3, with 2025 data confirming that the trend held through the most recent full year.
- Scope 1 and 2 emissions: 83 Mt CO2e in 2016 reduced to 58 Mt CO2e in 2024, a 30% absolute reduction
- Scope 1 and 2 emissions in 2025: 53 Mt CO2e, extending the reduction trajectory (2025 Annual Report)
- NCI achieved 9.0% reduction by end-2024, within 9 to 12% target band; maintained at 9% by end-2025
- Scope 3 Category 11 customer oil product emissions: 569 Mt CO2e in 2021 (baseline) reduced to approximately 14% cumulative reduction by end-2024
- Methane intensity (assets with marketed gas): 0.04% in 2024, compared to the 0.2% target ceiling
- Routine flaring: 0.1 million tonnes in 2024; eliminated from January 1, 2025
- Supplier spending: approximately $42 billion on goods and services globally in 2024
- Taxes paid globally: $18 billion in 2024
- Women in Senior Leadership: 33% in 2024
- Process safety incidents (Tier 1 and 2): 62 in 2025 vs. 58 in 2024, a slight increase that warrants monitoring
- CCS cumulative storage (Quest, Canada): more than 8 million tonnes CO2 since 2015
Source
https://www.shell.com/sustainability/climate.html
https://www.shell.com/investors/results-and-reporting/annual-report.html
Challenges and Areas for Improvement
Shell faces challenges on legal, data, and strategic fronts that place limits on its sustainability credibility despite strong operational metrics.
Legal and climate accountability risk remains active. The November 2024 Hague Court of Appeal ruling overturned the 2021 District Court order requiring Shell to cut emissions 45% by 2030, finding that no specific reduction percentage could be imposed under Dutch tort law. The ruling did affirm the principle that companies have a general duty of care on climate. This legal exposure continues to generate reputational and regulatory risk, particularly in European markets.
Scope 3 coverage beyond Category 11 remains the largest data and commitment gap. Shell discloses Scope 3 Category 11 (customer use of oil products) but does not publish comprehensive coverage across all other Scope 3 categories, limiting full value-chain transparency. Category 11 alone represents approximately 517 million tonnes CO2e, roughly nine times Shell’s 2024 Scope 1 and 2 total.
- Process safety incidents (Tier 1 and 2): 62 in 2025, up from 58 in 2024, a 7% increase that breaks the recent improvement trend
- SBTi absence: Shell uses its own NCI methodology rather than third-party validated science-based targets, reducing external comparability
- Biodiversity net gain: no formal time-bound commitment or quantified target despite CSRD biodiversity disclosure requirements now in effect
- Scope 3 beyond Category 11: full category coverage not published, limiting value-chain emissions accountability
- Investment plan comparability: the $10 to $15 billion low-carbon investment envelope spans 2023 to 2025 and is not broken down by technology or year, making year-on-year tracking difficult
- NCI methodology is proprietary and not directly comparable to GHG Protocol-based Scope 3 reporting, complicating peer benchmarking
Source
https://www.shell.com/sustainability/climate.html
https://climatehughes.org/blog-corporate-climate-unaccountability-landmark-shell-ruling/
https://www.shell.com/investors/results-and-reporting/annual-report.html
Future Plans and Long-Term Goals
Shell’s forward-looking sustainability agenda is anchored to its 2030 emission-reduction milestones and its 2050 net-zero ambition, with an Energy Transition Strategy (ETS) reviewed and published annually.
The 2030 agenda requires: halving Scope 1 and 2 emissions versus 2016 (30% achieved by 2024, 70% of required reduction achieved by 2025), reducing NCI by 15 to 20% (9% achieved by 2024), and reducing customer oil product emissions by 15 to 20% versus 2021 (14% achieved by 2024). All three core metrics are on trajectory, though the pace will need to accelerate through the mid-2020s.
- Routine flaring: fully eliminated from upstream-operated assets from January 1, 2025; target achieved
- Methane near-zero intensity: target for 2030, with 0.04% already achieved in 2024
- Scope 1 and 2 halving (2030): 70% of required reduction completed through 2025
- NCI 2050 target: 100% reduction versus 2016, covering all sold energy products
- Porthos CCS (Rotterdam): expected to become operational in the near term, delivering up to 2.5 Mtpa of industrial CO2 storage
- Hydrogen and CCS investment: up to $1 billion per year committed through 2025 with expectation of continued capital allocation into the next investment cycle
- CSRD-compliant Sustainability Statements: embedded in the Annual Report from 2024 onward, with the 2025 report maintaining this structure (pages 335 to 425)
Shell leads ExxonMobil on absolute Scope 1 and 2 targets and on Scope 3 Category 11 reduction ambitions, but lags in CCS contracted third-party volume relative to ExxonMobil’s Gulf Coast network of 9 Mtpa.
Source
https://www.shell.com/sustainability/climate.html
https://www.shell.com/investors/results-and-reporting/annual-report.html
Comparisons to Industry Competitors
Shell, ExxonMobil, and BP each represent a distinct approach to the energy transition: Shell leads on NCI methodology and Scope 3 ambition, BP had the most aggressive 2030 Scope 1 and 2 targets before revising them in 2023, and ExxonMobil leads on CCS commercialization and advanced recycling scale.
| Metric | Shell | ExxonMobil | BP |
|---|---|---|---|
| Scope 1 and 2 reduction (vs. 2016 baseline) | 30% absolute reduction by end-2024; 70% of target to halve by 2030 reached by end-2025 | 17% absolute reduction (2016 to 2024); intensity-based 2030 plan | Reduced to approximately 27 Mt CO2e by 2023; 2030 target revised from 50% to 30 to 35% reduction |
| Scope 3 Category 11 target | 15 to 20% reduction by 2030 vs. 2021; 14% achieved by end-2024 | No reduction target; 630 Mt CO2e disclosed in 2024 | 15 to 20% reduction ambition (retail customers) by 2030 vs. 2019; revised down in 2023 |
| Net zero target year | 2050 (Scope 1, 2, and NCI including end-use) | 2050 (Scope 1 and 2, operated assets only) | 2050 (net zero across value chain) |
| CCS capacity (contracted or operating) | Quest: 8 Mt+ cumulative; Porthos: up to 2.5 Mtpa when operational | ~9 Mtpa third-party under contract (Gulf Coast network) | Northern Lights (Norway): 1.5 Mtpa Phase 1 operational in 2024 |
| Low-carbon investment | $10 to $15B from 2023 to end of 2025; $1B/year in H2 and CCS | ~$20B from 2025 to 2030 (moderated from $30B in 2025) | ~$7 to $9B per year total capital; low-carbon allocation reduced in 2023 strategy reset |
| Routine flaring elimination | Eliminated from January 1, 2025 | Committed to World Bank ZRF; volume not quantified in 2025 summary | Targeting near-zero routine flaring by 2025; status unclear for non-operated assets |
| Methane intensity target | Below 0.2%; 0.04% achieved in 2024 | Near-zero ambition by 2030; intensity figure not published in 2025 summary | Below 0.2% by 2025 |
| Reporting framework | CSRD/ESRS-aligned Sustainability Statements (mandatory-equivalent, from 2024) | Voluntary; Ipieca, API, GHG Protocol aligned | Voluntary; TCFD, GHG Protocol aligned |
BP revised its headline 2030 carbon reduction target downward in 2023, from a 50% Scope 1 and 2 reduction to a 30 to 35% reduction, which weakens the direct comparison with Shell’s unchanged 50% by 2030 commitment. ExxonMobil’s Gulf Coast CCS network with approximately 9 Mtpa under contract for third-party industrial customers outpaces Shell’s contracted CCS volumes at this point, though Shell’s Porthos and Peterhead projects will add significant capacity when operational.
Source
https://carboncredits.com/big-oils-showdown-how-shell-chevron-exxonmobil-balance-big-profits-with-net-zero/
https://www.shell.com/sustainability/climate.html
https://www.lse.co.uk/rns/shell-publishes-energy-transition-strategy-2024-stpbohyiwth9e5n.html
What to Watch: 12 to 18 Month Indicators
Three forward-looking signals will most clearly shift Shell’s sustainability standing through the end of 2026.
NCI 2025 Final Performance vs. 9 to 13% Target. Shell’s 2025 NCI target band is 9 to 13% versus 2016. The 2025 Annual Report states NCI remained at approximately 9% by year-end 2025. This keeps Shell at the very bottom of the target band and means the trajectory needs to steepen to reach 15 to 20% by 2030. Failure to show acceleration in the 2026 reporting cycle would signal that the 2030 NCI target is at risk. Any slip below 9% would constitute a missed milestone for the first time since 2021.
Porthos CCS Operational Start-Up. The Porthos CCS project in the Port of Rotterdam received its final investment decision in 2023 and is one of the most commercially significant CCS projects in Europe. Its successful start-up would confirm Shell’s ability to execute large-scale third-party CCS infrastructure, closing part of the contracted-volume gap with ExxonMobil’s Gulf Coast network. A delay or cost overrun would raise questions about Shell’s European CCS commercialization model.
Process Safety Incidents Recovery. Tier 1 and 2 process safety incidents rose from 58 in 2024 to 62 in 2025, a 7% increase. This reversal in a previously improving metric is a leading indicator of operational risk. Any further rise in 2026 data would put pressure on Shell’s safety-linked social license to operate, particularly in regulated European jurisdictions.
- NCI at 9% by end-2025; 2030 target requires 15 to 20% reduction
- Porthos CCS: up to 2.5 Mtpa capacity pending operational commissioning
- Process safety incidents: 58 in 2024, 62 in 2025, a 7% deterioration
Source
https://www.shell.com/investors/results-and-reporting/annual-report.html
https://www.shell.com/sustainability/climate.html
https://www.world-energy.org/article/33728.html
Shell has built the most complete public carbon accounting system among major integrated oil companies, integrating Scope 1, 2, and a meaningful portion of Scope 3 into annually verified, milestone-linked targets that it has consistently met since 2021. The 2024 integration of sustainability disclosures into CSRD-aligned Sustainability Statements marks a structural transparency upgrade, removing the reputational ambiguity of voluntary standalone reports. Its early achievement of routine flaring elimination and consistently sub-0.2% methane intensity are concrete, verifiable wins.
The gaps are real and concentrated. Shell’s NCI has plateaued at approximately 9% for 2024 and 2025, while the 2030 target requires 15 to 20%. That gap will require either a significant increase in low-carbon product sales or deeper cuts in oil product volumes, both of which face commercial headwinds. The process safety deterioration in 2025 and the absence of SBTi validation remain second-order risks that practitioners should note.
Three strategic takeaways for practitioners benchmarking or replicating this approach:
- Shell’s NCI methodology, tracking the full energy lifecycle of every product sold at a portfolio level, is the most sophisticated carbon accounting framework in the sector for any company with both upstream and downstream exposure. Any integrated energy company seeking to move beyond facility-level Scope 1 and 2 reporting should study the Net Carbon Footprint methodology as a scalable model.
- The Porthos and Quest CCS architecture, where Shell acts as infrastructure operator and aggregates emissions from multiple industrial customers, provides a replicable playbook for industrial cluster decarbonization that does not require each emitter to own its own capture and storage system. This is particularly relevant for port and refining corridor operators in Europe and North America.
- Shell’s decision to embed sustainability data inside a CSRD-compliant Annual Report rather than a standalone voluntary document sets a compliance-forward precedent. Practitioners at non-EU companies should treat this as a forward indicator of where global sustainability disclosure standards are heading, not as a European-only requirement.
