- General
- December 3, 2018
- 5 minutes read
Shell Agrees to Setting of Short-term Carbon Targets as Part of Long-term Ambition to Reduce its Net Footprint
Shell Shell has agreed to a plan backed by its institutional investors on behalf of Climate Action 100+, an initiative…
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Shell has agreed to a plan backed by its institutional investors on behalf of Climate Action 100+, an initiative led by investors with over $32 trillion in assets under management to now set carbon targets aimed at reducing its Net Carbon Footprint to curb climate effects. The oil giant is aiming to cut the Net Carbon Footprint of its energy products by around half by 2050, and by around 20% by 2035 in line with society’s drive to meet the goals of the Paris Agreement according to its statement.
Shell is working on this long-term ambition with a commitment to setting specific Net Carbon Footprint targets geared at shorter periods of 3 or 5 years with a target set each year following a three- or five-year period. This process will kick off from 2020 and will run 30 years till 2050.
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The company will publish its progress towards lowering its total Carbon footprint in its Sustainability Report and also intends to fit in this disclosure into the Annual Report and Form 20-F in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). It released a joint statement with institutional investors including the the Universities Superannuation Scheme (USS), pension fund ABP, the Environment Agency Pension Fund (EAPF) and other groups this Monday announcing this.
“We applaud the joint statement by Shell and lead investors for Climate Action 100+,” Anne Simpson, the inaugural Chair of the Climate Action 100+ Steering Committee and Director of Board Governance and Strategy at the California Public Employees’ Retirement System (CalPERS) said in a statement. “The commitment by Shell to fully respond to the engagement shows the value of dialogue and global partnership to deliver on the goals of the Paris Agreement on climate change. Shell is setting the pace, and we look forward to other major companies following its lead.”
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| Shell |
“When it comes to meeting the demands of the Paris Agreement on climate change, we believe it is necessary to strengthen partnerships between investors and their investee companies to accelerate progress towards reaching such an ambitious common goal. This joint statement is an example of such a partnership. As institutional investors in Shell we continue to support Shell on its journey in the energy transition, aiming for other companies to follow suit.” Robeco (a participant) Chief Investment Officer Peter Ferket also added.
Actions highlighted by the Royal Dutch Shell to be undertaken in line with this agreement includes publishing of short-term Net Carbon Footprint targets, Targets linked to remuneration and Review of Progress, Alignment with the TCFD recommendations and also corporate climate lobbying.
