Shell today issued its Energy Transition Strategy publication, which will be put to shareholders for an advisory vote at the company’s Annual General Meeting on May 18, 2021. This is the first time that an energy company has asked shareholders to vote on its energy transition strategy.

“As we transform our business, it is more important than ever for shareholders to understand and support our approach,” says Royal Dutch Shell Chief Executive Officer, Ben van Beurden, in his introduction to the publication. “We are asking our shareholders to vote for an energy transition strategy that is designed to bring our energy products, our services, and our investments in line with the goal of the Paris Agreement and the global drive to combat climate change.”

This publication sets out the company’s target to achieve net-zero emissions by 2050, in step with society’s progress towards the goal of the Paris Agreement on climate change. It also describes Shell’s short- and medium-term climate targets, customer-focused decarbonisation strategy, capital allocation and approach to climate-related policy and advocacy. 

The decision to seek an advisory vote was announced in February as part of Shell’s Powering Progress strategy, which aims to accelerate the transition of the company’s business to net-zero emissions, in step with society. It follows continuing engagement with shareholders, including with Climate Action 100+ which represents investors with assets of around $54 trillion.

The vote is purely advisory and will not be binding. Shell’s Board and Executive Committee remain responsible and accountable for setting and approving Shell’s energy transition strategy.

Shell will publish an update to its Energy Transition Strategy publication every three years until 2050. Every year, starting in 2022, it will also seek an advisory vote on its progress towards its plans and targets. 

Shell's path to Net-zero emissions

2021

• Launched Powering Progress strategy to accelerate the transition of the company's business to net-zero emissions, including targets to reduce the carbon intensity of energy products they sell: by 6-8% by 2023, 20% by 2030, 45% by 2035 and 100% by 2050.
• Published the 2021 Industry Associations Climate Review, extending coverage to 36 industry associations.
• Offered advisory vote on Shell’s energy transition strategy.
• Increasing the weighting of the Energy Transition performance metric in the Long-term Incentive Plan (LTIP) from 10% to 20%.
• Introduced an absolute greenhouse gas (GHG) abatement target to the annual bonus scorecard, and the total weighting of measures connected to GHG emissions is increasing from 10% to 15%. 2020
• Announced target to become a net-zero emissions energy business by 2050, in step with society’s progress as it works towards the Paris Agreement goal of limiting the increase in the average global temperature to 1.5°C.
• Published the Industry Associations Climate Review Update, including Shell’s updated climate-related policy positions and payments to key industry associations.
• Energy Transition performance metric extended to around 16,500 employees through the performance share plan (PSP). 

2019

• Published the first Industry Associations Climate Review, which reviewed the alignment between the company's climate-related policy positions and those of 19 key industry associations of which they are a member.
• Announced a programme to invest in natural ecosystems as part of a strategy to act on global climate change, including addressing carbon dioxide (CO2) emissions generated by customers when using Shell products. This programme contributes to Shell’s three-year target, beginning in 2019, to reduce their Net Carbon Footprint by 2–3% by 2021.
• Introduced the Energy Transition performance metric into the LTIP. The LTIP includes short-term targets linked to our Net Carbon Footprint target, as well as a number of other strategic business transformation targets that measure progress towards achieving the company's longer-term ambitions. Shell were the first major energy company to connect executive pay to the energy transition in this way.

2018

• Published the Shell Energy Transition Report, describing how the company manage climate-related risks and opportunities, as part of their response to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
• Promoted the implementation of the TCFD recommendations and worked with the Oil and Gas Preparers Forum and the World Business Council for Sustainable Development (WBCSD) to strengthen the sector’s response to these recommendations.
• Signed a joint statement with leading institutional investors on behalf of Climate Action 100+ announcing steps that Shell had decided to take to demonstrate alignment with the goals of the Paris Agreement on climate change.

2017

• Announced ambition to reduce the carbon intensity of the energy products we sell by around half by 2050 and by around 20% by 2035, measured by the company's Net Carbon Footprint, including the full life-cycle emissions from the use of our energy products by customers.
• Initiated the Methane Guiding Principles coalition, announcing a methane emissions intensity target.
• Introduced GHG intensity measures to the company's annual bonus scorecard.

Click here to read the Shell Energy Transition Strategy   l   KeyFacts Energy: Shell Netherlands country profile