TIDMRDSA TIDMRDSB 
 
   The Hague, February 11, 2021 - Shell today set out its strategy to 
accelerate its transformation into a provider of net-zero emissions 
energy products and services, powered by growth in its customer-facing 
businesses. A disciplined cash allocation framework and rigorous 
approach to driving down carbon emissions will deliver value for 
shareholders, customers and wider society. Shell also confirmed its 
expectation that total carbon emissions for the company peaked in 2018, 
and oil production peaked in 2019. 
 
   "Our accelerated strategy will drive down carbon emissions and will 
deliver value for our shareholders, our customers and wider society," 
said Royal Dutch Shell Chief Executive Officer, Ben van Beurden. 
 
   "We must give our customers the products and services they want and need 
-- products that have the lowest environmental impact. At the same time, 
we will use our established strengths to build on our competitive 
portfolio as we make the transition to be a net-zero emissions business 
in step with society. 
 
   "Whether our customers are motorists, households or businesses, we will 
use our global scale and trusted brand to grow in markets where demand 
for cleaner products and services is strongest, delivering more 
predictable cash flows and generating higher returns." 
 
   From today, Shell is integrating its strategy, portfolio, environmental 
and social ambitions under the goals of Powering Progress: generating 
shareholder value, achieving net-zero emissions, powering lives and 
respecting nature. Shell's reshaped organisation will deliver on these 
goals through the three business pillars of Growth, Transition and 
Upstream. 
 
   FINANCIAL RESILIENCE AND PROFITABLE GROWTH THROUGH DISCIPLINED CAPITAL 
ALLOCATION 
 
   Shell reiterated its cash priorities to deliver value for shareholders 
today while growing value for tomorrow, including: 
 
 
   -- Maintain the progressive dividend policy, increasing dividend per share 
      by around 4% per year, subject to Board approval. 
 
   -- Retain near-term annual Cash capital expenditure of $19-22 billion. 
 
   -- Reduce net debt to $65 billion. 
 
   -- On reducing net debt to $65 billion, target total shareholder 
      distributions of 20-30% of cash flow from operations; increased 
      shareholder distributions achieved through a combination of Shell's 
      progressive dividends and share buybacks. 
 
   -- Disciplined and measured capital expenditure growth balanced with 
      additional shareholder distributions and further strengthening of our 
      balance sheet. 
 
 
   In the near term we expect to maintain underlying operating expenses of 
no higher than $35 billion, and pursue divestments averaging $4 billion 
a year. Over time the balance of capital spending will shift towards the 
businesses in the Growth pillar, attracting around half of the 
additional capital spend. Cash flow will follow the same trend and in 
the long term will become less exposed to oil and gas prices, with a 
stronger link to broader economic growth. 
 
   THE ROAD TO NET-ZERO EMISSIONS: A COMPREHENSIVE CARBON MANAGEMENT 
APPROACH 
 
   Shell set out details of how it will achieve its target to be a net-zero 
emissions energy business by 2050, in step with society's progress 
towards achieving net zero. This target covers the emissions from our 
operations and the emissions from the use of all the energy products we 
sell. And crucially, it includes emissions from the oil and gas that 
others produce and Shell then sells as products to customers, making the 
target comprehensive. 
 
   Powering Progress supports the most ambitious goal of the Paris 
Agreement on climate change to limit the global temperature rise to 
1.5deg Celsius. To achieve net zero, Shell: 
 
 
   -- will continue with short-term targets that will drive down carbon 
      emissions as we make progress towards our 2050 target, linked to the 
      remuneration of more than 16,500 staff. This includes a new set of 
      targets to reduce our net carbon intensity: 6-8% by 2023, 20% by 2030, 
      45% by 2035 and 100% by 2050, using a baseline of 2016; 
 
   -- expects that its total carbon emissions peaked in 2018 at 1.7 gigatonnes 
      per annum; 
 
   -- confirms that its total oil production peaked in 2019; 
 
   -- will seek to have access to an additional 25 million tonnes a year of 
      carbon, capture and storage (CCS) capacity by 2035. Currently, three key 
      CCS projects of which Shell is a part, Quest in Canada (in operation), 
      Northern Lights in Norway (sanctioned) and Porthos in The Netherlands 
      (planned), will total around 4.5 million tonnes of capacity; 
 
   -- aims to use nature-based solutions (NBS), in line with the philosophy of 
      avoid, reduce and only then mitigate, to offset emissions of around 120 
      million tonnes a year by 2030, with those we use being of the highest 
      independently verified quality; 
 
   -- will work with the Science Based Targets Initiative, Transition Pathway 
      Initiative and others to develop standards for the industry and align 
      with those standards; 
 
   -- starting at the 2021 AGM, submit an Energy Transition Plan for an 
      advisory vote to shareholders, the first in the sector to do so. We will 
      update that plan every three years and seek an advisory vote on the 
      progress made each year. 
 
 
   DELIVERING WITH A PORTFOLIO FOR THE ENERGY TRANSITION 
 
   Shell is a customer-focused organisation, serving more than 1 million 
commercial and industrial customers, and 30 million customers at 46,000 
retail service stations daily. Shell uses its world-leading brand, 
global reach and expertise to be a one-stop shop for both consumer and 
business customers. A presence across the entire energy system means we 
can optimise, scale up, and trade products in a way that develops 
markets, drives down costs, and will help accelerate the energy 
transition. 
 
   Shell's aim is to build material low-carbon businesses of significant 
scale by the early 2030s. Upstream will continue to deliver vital energy 
supplies, which will help to generate the cash and returns needed to 
fund shareholder distributions while accelerating investment in the 
growth businesses to capture new market opportunities. 
 
   In the near term, Shell's strategy will rebalance its portfolio, 
investing annually $5-6 billion in its Growth pillar (around $3 billion 
in Marketing; $2-3 billion in Renewables and Energy Solutions), $8-9 
billion in its Transition pillar (around $4 billion Integrated Gas; $4-5 
billion Chemicals and Products) and around $8 billion in Upstream. Plans 
include: 
 
   Growth: 
 
   Marketing 
 
   Target to increase Adjusted Earnings to around $6 billion by 2025 (from 
$4.5 billion in 2020), achieved by improving the already market-leading 
position of the lubricants business, an increase to 40 million customers 
at 55,000 retail sites (from 30 million at 46,000 sites today) and 
growth of global electric vehicle (EV) network from more than 60,000 
charge points today to around 500,000 by 2025. 
 
   Low-carbon fuels -- extend our leading biofuels production and 
distribution business, which in 2019 sold more than 10 billion litres of 
biofuels. Our joint venture Raízen, which produces low-carbon fuels 
from sugar cane in Brazil, recently announced the acquisition of Biosev. 
This is set to increase Raízen's bioethanol production capacity by 
50%, to 3.75 billion litres a year, around 3% of global production. 
 
   Renewables and Energy Solutions 
 
   Integrated Power -- aim to sell some 560 terawatt hours a year by 2030 
which is twice as much electricity as we sell today. We expect to serve 
more than 15 million retail and business customers worldwide. We aim to 
be a leading provider of clean Power-as-a-Service. We will make our 
investments go further by partnering with others with the emphasis for 
Shell being on managing clean electrons. 
 
   Nature-based solutions -- expect to invest around $100 million a year in 
high-quality, independently verified projects on the ground to build a 
significant and profitable business to help customers meet their 
net-zero emissions targets. 
 
   Hydrogen -- build on Shell's leading position in hydrogen by developing 
integrated hydrogen hubs to serve industry and heavy-duty transport, aim 
to achieve double-digit share of global clean hydrogen sales. 
 
   Transition: 
 
   Integrated Gas 
 
   Extend leadership in liquefied natural gas (LNG) volumes and markets, 
with selective investment in competitive LNG assets to deliver more than 
7 million tonnes per annum of new capacity on-stream by middle of the 
decade. Continue to support customers with their own net-zero ambitions, 
with leading offers such as carbon-neutral LNG. 
 
   Chemicals and Products 
 
   Transform our refinery footprint from 13 sites today to six high-value 
Chemicals and Energy Parks and reduce production of traditional fuels by 
55% by 2030. Intention to grow volumes of the chemicals portfolio and 
increase cash generation from Chemicals by $1-2 billion a year by 2030 
compared with the medium term. Will produce chemicals from recycled 
waste, known as circular chemicals, and by 2025 aim to annually process 
1 million tonnes a year of plastic waste. 
 
   Upstream: 
 
   Focus on value over volume, being simpler and more resilient, continuing 
to provide material cash flow into the 2030s.  An expected gradual 
reduction in oil production of around 1-2% each year, including 
divestments and natural decline. 
 
   CONTACTS 
 
   Media International: +44 (0) 207 934 5550 
 
   Media Americas: +1 832 337 4355 
 
   CAUTIONARY NOTE 
 
   The companies in which Royal Dutch Shell plc directly and indirectly 
owns investments are separate legal entities. In this announcement 
"Shell", "Shell Group" and "Royal Dutch Shell" are sometimes used for 
convenience where references are made to Royal Dutch Shell plc and its 
subsidiaries in general. Likewise, the words "we", "us" and "our" are

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