While the energy transition brings risks to the company, it also brings 
opportunities for us to prosper and to build on our positive 
contribution to society. Our strategy, as outlined in this report, is 
designed to minimise those risks while enhancing our ability to 
profitably lead as the world transitions to an energy system that is 
aligned with the goal of the Paris Agreement. 
 
   It is important for shareholders to have a clear understanding of the 
company's strategy as we work together to meet the goal of Paris. The 
Board and management also believe it is important for all shareholders 
to have a vehicle to express their views on whether our strategy is 
reasonable in the current environment. This advisory vote is designed to 
be that vehicle. It does not shield or abdicate the Board's or 
management's legal obligations under the UK Companies Act. 
 
   The support of our shareholders is critical for us to achieve our target 
to become a net-zero emissions energy business by 2050, in step with 
society. We hope to gain your support for the approach described in this 
publication. In addition to your vote, we invite your continued feedback 
ahead of the publication of our next Energy Transition Strategy which 
will be presented to shareholders before the Annual General Meeting in 
2024. 
 
   The Board recommends that you vote in favour of resolution 20, in 
support of the energy transition strategy described in this publication. 
 
   CHAD HOLLIDAY 
 
   Chair 
 
   CHIEF EXECUTIVE OFFICER'S INTRODUCTION 
 
   Tackling climate change is the biggest challenge the world faces today. 
Our Powering Progress strategy, which we launched in February 2021, sets 
out how Shell can and must play a leading role in helping society to 
meet that challenge. 
 
   As we transform our business, it is more important than ever for our 
shareholders to understand and support our approach. That is why we are 
publishing details of our energy transition strategy and, for the first 
time, submitting it to shareholders for an advisory vote at our Annual 
General Meeting this year. 
 
   Our target to become a net-zero emissions energy business by 2050, in 
step with society's progress towards the goal of the Paris Agreement on 
climate change, is at the heart of our energy transition strategy. That 
means continuing to reduce our total absolute emissions to net zero by 
2050. 
 
   We have set our net-zero target, and our short- and medium-term carbon 
intensity targets, so that they are fully consistent with the more 
ambitious goal of the Paris Agreement: to limit the increase in the 
average global temperature to 1.5degC above pre-industrial levels. And 
our targets cover the full range of our emissions, Scopes 1, 2 and 3 of 
all the energy we sell, not just the energy we produce. 
 
   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 temperature goal of the Paris Agreement and 
the global drive to combat climate change. It is a strategy that we 
believe creates value for our shareholders, our customers and wider 
society. 
 
   WORKING WITH OUR CUSTOMERS 
 
   Most of our emissions come from the use of our fuels and the other 
energy products we sell. So it makes sense to place our customers at the 
centre of our energy transition strategy. It is where we can make the 
biggest difference. We will work with our customers to change and grow 
demand for low-carbon energy products and services, sector by sector, 
using the strength of our business relationships, knowledge and 
expertise. 
 
   We will increasingly offer low-carbon products and solutions, such as 
biofuels, charging for electric vehicles, hydrogen and renewable power, 
as well as carbon capture and storage and nature-based offsets. In this 
way, we expect to build low-carbon businesses of significant scale over 
the coming decade. In addition, we will drive down emissions from our 
own operations as we continue to provide the oil and gas products our 
customers need today, while at the same time helping them move to a low- 
and zero-carbon future. 
 
   To be clear, the best way for Shell to contribute to the energy 
transition is to work with our customers to help shape demand for 
low-carbon energy products and services. In turn, the increasing need to 
supply low-carbon energy products and services will accelerate Shell's 
transition to net zero. Ending our activities in oil and gas too early 
when they are vital to meeting today's energy demand would not help our 
customers, or our shareholders. 
 
   SEEKING SHAREHOLDER SUPPORT 
 
   The decision to seek an advisory vote on our energy transition strategy 
follows our continuing engagement with shareholders, including with 
Climate Action 100+, which represents investors with assets of around 
$54 trillion. This vote does not replace the responsibilities of our 
Directors in setting the company's strategy. We have based the structure 
of this publication around the net-zero disclosure standard developed by 
Climate Action 100+ for the oil and gas industry. 
 
   In the following pages we set out our short-, medium- and long-term 
targets, our decarbonisation strategy and how we intend to allocate 
capital across our three business pillars of Growth, Transition and 
Upstream in the years ahead. We also explain our approach to 
climate-related policy and advocacy, an important part of how we are 
working with governments and others to accelerate the transition to low- 
and zero-carbon energy. 
 
   As the world continues to grapple with the impact of COVID-19, companies 
also play an important role in powering lives. In this publication, we 
describe how we will support livelihoods and communities as we transform 
our business. 
 
   We also outline our strong governance and a commitment to transparency. 
As we continue to implement the recommendations of the Task Force on 
Climate-related Financial Disclosures, we show how we are managing the 
risks and opportunities of climate change. 
 
   I would like to thank the investor groups we have worked with as we have 
developed our energy transition strategy, including the Institutional 
Investors Group on Climate Change (IIGCC) and Climate Action 100+. We 
must continue our dialogue with investors as Shell continues to evolve. 
We will be transparent so that investors can continue to assess our 
climate strategy and compare our progress to that of other companies. 
 
   This is a critical time in the world's efforts to tackle climate change. 
It is also a time of tremendous opportunity for Shell. By transforming 
our business in line with our energy transition strategy, we will 
contribute to achieving a net-zero emissions energy system, help society 
reach its climate goals and create a compelling investment case for our 
shareholders, today and in the future. We ask our shareholders to vote 
for resolution 20 and support the execution of our energy transition 
strategy. 
 
   BEN VAN BEURDEN 
 
   CEO 
 
   SHELL'S PATH TO NET-ZERO EMISSIONS 
 
   This is the first time that Shell has offered investors an advisory vote 
on our energy transition strategy. This vote represents the next step in 
our continuing dialogue with our investors. It is also one of many 
firsts on our path to becoming a net-zero emissions energy business. 
 
   2021 
 
 
   -- Launched Powering Progress strategy to accelerate the transition of our 
      business to net-zero emissions, including targets to reduce the carbon 
      intensity of energy products we sell: by 6-8% by 2023, 20% by 2030, 45% 
      by 2035 and 100% by 2050. 
 
   -- Published the 2021 Industry Associations Climate Review, extending our 
      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 
      1.5degC. 
 
   -- Published the Industry Associations Climate Review Update, including 
      Shell's updated climate-related policy positions and our 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 our climate-related policy positions and those of 
      19 key industry associations of which we are a member. 
 
   -- Announced a programme to invest in natural ecosystems as part of our 
      strategy to act on global climate change, including addressing carbon 
      dioxide (CO2) emissions generated by customers when using our products. 
      This programme contributes to Shell's three-year target, beginning in 
      2019, to reduce our 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 our longer-term 
      ambitions. We 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 we manage 
      climate-related risks and opportunities, as part of our response to the 
      recommendations of the Task Force on Climate-related Financial 
      Disclosures (TCFD).

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04-15-21 0215ET