-- 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 our 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 [A]. 
 
 
   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 our 
      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 our annual bonus scorecard. 
 
 
   [A] 
https://www.shell.com/media/news-and-media-releases/2018/joint-statement-between-institutional-investors-onbehalf-of-climate-action-and-shell.html 
 
 
   OUR ENERGY TRANSITION STRATEGY 
 
   OUR GOAL to become a NET-ZERO ENERGY BUSINESS BY 2050 
 
   Aligned with Paris                   In step with society 
 
   OUR CARBON TARGETS for ALL ENERGY WE SELL, SCOPES 1, 2 & 3 
 
   REDUCING NET CARBON INTENSITY GCO(2) E/MJ 
 
   2016 baseline 
 
 
   -- 2-3% by 2021 
 
   -- 3-4% by 2022 
 
   -- 6-8% by 2023 
 
   -- 20% by 2030 
 
   -- 45% by 2035 
 
   -- 100% by 2050 
 
 
   Carbon intensity                                           Absolute carbon 
 
 
   2016 baseline                                               1.7 gtpa 
 
 
   79 gCO2e/MJ 0 gCO2e/MJ                         2018 
 
   0 gCO2e/MJ                                    2050      0 gtpa 
 
   REDUCING ABSOLUTE CARBON EMISSIONS: FROM 1.7 GTPA TO NET ZERO BY 2050 
 
   We believe total carbon emissions from energy sold peaked in 2018 at 
around 1.7 gigatonnes CO(2) e per annum (gtpa) and will be brought down 
to net zero by 2050 
 
   WORKING WITH OUR CUSTOMERS ACROSS SECTORS TO ACCELERATE THE TRANSITION 
TO NET-ZERO EMISSIONS 
 
   OUR ACTIONS 
 
   AVOID 
 
   By providing, investing in and scaling up low-carbon energy solutions 
for our customers 
 
   REDUCE 
 
   By limiting emissions as much as possible today 
 
   MITIGATE 
 
   By capturing and offsetting any residual emissions 
 
   OUR 2030 MILESTONES 
 
   OPERATIONAL EFFICIENCY 
 
 
   -- Eliminate routine flaring 
 
   -- Maintain methane emissions intensity <0.2% by 2025 
 
 
   LOW-CARBON POWER 
 
 
   -- Double electricity sold 
 
   -- >50 million households equivalent renewable power 
 
   -- 2.5 million electric vehicle charge points 
 
 
   CCS 
 
 
   -- Targeting 25 mtpa by 2035 
 
 
   NATURAL GAS SHIFT 
 
 
   -- Oil production decline 1-2% per annum 
 
   -- No new frontier exploration entries after 2025 
 
   -- Growing gas share to 55% of hydrocarbon production 
 
 
   LOW-CARBON FUELS (BIOFUELS, HYDROGEN) 
 
 
   -- Produce 8x more low-carbon fuels 
 
   -- Increase low-carbon fuel sales to >10% of transport fuels 
 
 
   NATURAL SINKS 
 
 
   -- Aiming for 120 mtpa 
 
   -- High-quality offsets only 
 
   BECOMING NET ZERO BY 2050 
 
   Tackling climate change is an urgent challenge. It requires a 
fundamental transformation of the global economy, and the energy system, 
so that society stops adding to the total amount of greenhouse gases in 
the atmosphere, achieving what is known as net-zero emissions. 
 
   That is why Shell has set a target to become a net-zero emissions energy 
business by 2050, in step with society's progress in achieving the goal 
of the Paris Agreement on climate change. We believe our target supports 
the more ambitious goal of the Paris Agreement: to limit the increase in 
the average global temperature to 1.5degC above pre-industrial levels. 
 
   It is aligned with the findings of the Intergovernmental Panel on 
Climate Change (IPCC) which concluded that the world must reach net-zero 
carbon emissions by around 2050 to limit global warming to 1.5degC and 
avoid the worst effects of climate change. 
 
   Becoming a net-zero emissions energy business means that we are reducing 
emissions from our operations, and from the fuels and other energy 
products such as electricity that we sell to our customers. It also 
means capturing and storing any remaining emissions using technology or 
balancing them with offsets. 
 
   COLLABORATION 
 
   Increasing numbers of countries and companies have announced targets to 
achieve net-zero emissions by the middle of the century, and we are 
starting to see some changes in the demand and supply of energy. 
 
   Achieving the 1.5degC goal will be challenging but it is technically 
possible. The extent of global collaboration required will be 
unprecedented. The pace of change will also be different around the 
world. The wealthier, more developed countries and regions must move 
faster. If they do not, then those countries and regions that cannot 
move so quickly will not have the time they need. The European Union 
(EU), for example, must achieve net-zero emissions by no later than 2050 
if the world is to succeed in limiting global warming to 1.5degC. 
 
   Shell has built a scenario looking at what the EU might need to do to 
decarbonise which gives some insight into the scale of the significant 
challenge involved. The scenario identified nine areas for action. 
 
   THE SCALE OF THE CHALLENGE 
 
   As an illustration, achieving net-zero emissions in the EU in the next 
30 years could mean: 
 
   ACCELERATING CLEAN TECHNOLOGIES 
 
 
   -- Double the generation of electricity, triple its share of final energy 
 
   -- Shift the electricity mix to 75% renewables, no coal 
 
   -- Target 10% hydrogen in final energy, including as a fuel for heating, 
      industry and heavy transport 
 
   -- Triple the use of biofuels, with a shift to advanced forms 
 
 
   TARGETING BEHAVIOURAL INCENTIVES 
 
 
   -- Invest in infrastructure to improve energy efficiency per unit of GDP by 
      almost 45% 
 
   -- Incentivise green consumer and business choices in support of the green 
      economy 
 
   -- Progressively raise the government-led carbon price in the EU to more 
      than EUR200/tonne of CO2 equivalent in 2050 
 
 
   REMOVING EMISSIONS 
 
 
   -- Build at least two major carbon capture and utilisation facilities every 
      month (more than 1 million tonnes each) 
 
   -- Reforest at least 220,000 square kilometres in the EU (about half the 
      area of Spain) to remove the remaining 300 million tonnes of CO2 in 2050 
 
 
   Source: Shell Scenarios Sketch: A climate-neutral EU by 2050 
 
   Achieving the goal of the Paris Agreement will require simultaneous 
growth in supply and demand for low-carbon energy. Crucially, it will 
also require significant changes to the way our customers use energy, 
whether they are motorists, households or businesses. 
 
   All parts of society including energy producers, consumers and 
policymakers will need to take action. That is why our strategy is based 
on working with our customers and others to accelerate the transition of 
the energy system. This includes supporting government policies that 
will help the world achieve net-zero emissions by 2050. 
 
   We will build on our strengths, our global scale and deep knowledge of 
energy markets to help grow demand for low-carbon energy. In this way, 
we will continue to build a strong business while playing an important 
role in the transition to low-carbon energy. 
 
   NET ZERO FROM OUR OPERATIONS AND PRODUCTS 
 
   Our net-zero target includes emissions from our operations, our Scope 1 
and 2 emissions, and the life-cycle emissions, including from the end 
use, from all the energy products we sell, our Scope 3 emissions. 
 
   We will reduce emissions from our own operations, including the 
production of oil and gas, by increasing energy efficiency and capturing 
or offsetting any remaining emissions. 
 
   More than 90% of our emissions come from the use of the fuels and other 
energy products we sell, so we must also work with our customers to 
reduce their emissions when that energy is used [B]. That means offering 
them the low-carbon products and services they need such as renewable 
electricity, biofuels, hydrogen, carbon capture and storage and 
nature-based offsets. 
 
   Importantly, our target includes emissions not only from the energy we 
produce and process ourselves, including oil and gas, but also from all 
the energy products that other companies produce and we sell [C]. This 
is significant because we sell more than three times the energy we 
produce ourselves. 
 
   In summary, our targets include all emissions from the energy we sell, 
and the majority of the emissions we include in our targets are not 
related to our own oil and gas production. 
 
   [B] This includes emissions from the use of energy produced and sold by 
Shell as well as full life-cycle emissions from energy produced by 
others and sold by Shell. Combined, these are reported under relevant 
categories of Scope 3 emissions 
(https://reports.shell.com/annual-report/2020/). 
 
   [C] Sales from retail stations that use the Shell brand but are not 
operated or supplied by Shell are excluded. 
 
   WE ADDRESS THE EMISSIONS FROM ALL THE ENERGY WE SELL 
 
   OUR TARGETS: SHORT, MEDIUM AND LONG TERM 
 
   We believe our total absolute emissions peaked in 2018 at 1.7 gigatonnes 
and our climate target means we will have to bring that down to absolute 
net-zero emissions by 2050. 
 
   As we work to achieve that target, and to measure our progress over the 
next three decades, we have set short-, medium- and long-term targets to 
reduce the carbon intensity [D] of the energy products we sell. Carbon 
intensity is the total amount of greenhouse gas emissions associated 
with each unit of energy that we sell, and that is used by our 
customers. 
 
   We use carbon intensity targets to measure our progress because we think

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