Shell posts “good progress” on its net-zero journey in 2022

UK-headquartered energy giant Shell has published in its Energy Transition Progress Report 2022, which shows it has met its climate targets as part of its energy transition strategy and reached a 30% reduction in carbon emissions from its operations by the end of 2022 compared with 2016 on a net basis.

According to Shell, the report shows good progress on the net-zero journey and will be put to shareholders for an advisory vote at Shell’s Annual General Meeting on 23 May 2023.

“In this report, we show the progress we have made towards becoming a net-zero emissions energy business by 2050, as we continue to supply the vital energy the world needs during a time of great volatility”, said Wael Sawan, Shell’s Chief Executive Officer. “I am especially proud of the progress we have made in reducing carbon emissions from our operations, with a 30% reduction by the end of 2022 compared with 2016 on a net basis.”

The report shows that, by the end of 2022, the net carbon intensity of the energy products sold by Shell had also fallen by 3.8%, compared with 2016. Using data from the International Energy Agency, Shell’s analysis finds that the net carbon intensity of the global energy system fell by around 2% over that time.

Furthermore, the report highlights steps that Shell has taken to advance its energy transition strategy, such as significant investments in liquefied natural gas (LNG), which Shell expects to remain an important part of the energy mix for many years to come, partly because of its role in reducing emissions from power generation and transport.

Other steps include Shell’s $1.6 billion investment in Indian renewable power developer Sprng Energy, and the final investment decision on the Holland Hydrogen 1 project in the Netherlands, which will be Europe’s largest renewable hydrogen plant.

In 2022, Shell also announced the acquisition of Denmark’s Nature Energy, which produces renewable natural gas, for around $2 billion. This deal was completed at the beginning of 2023.

The energy giant also notes it increased the number of electric vehicle charge points it owned or operated worldwide by 62% to around 139,000 in 2022, up from 86,000 the previous year.

Andrew Mackenzie, Shell Chair, said: “We believe the progress we have made in line with our energy transition strategy has been to the benefit of our customers, our shareholders and wider society.”

According to the company, the progress comes at a time when the energy system still faces challenges as high energy prices continue to contribute to a cost-of-living crisis for many people.

“These challenges have highlighted the need for a balanced energy transition: one in which the world achieves net-zero emissions, while still providing a secure and affordable supply of energy”, Shell states.

In 2022, Shell recorded the highest-ever profit on a year-on-year basis last year, reaching nearly $40 billion, which surpassed its previous annual record of $28.4 billion in 2008.