Despite its reported earnings being lower than expected, Shell has announced that it has set itself tougher targets to reduce its emissions.
Shell had already committed itself to becoming a net-zero carbon emitter by 2050, with interim reductions in carbon intensity of 45% by 2035 and 20% by 2030, compared to levels in 2016. The Anglo-Dutch oil major now says it will reduce its Scope 1 and 2 emissions – which come from its operations and the electricity it consumes – by half by 2030.
Despite already having a net-zero target, a court in the Netherlands recently ordered the company to accelerate its progress in reducing emissions, including for Scope 3, which includes the emissions caused when its customers consume its products. Shell is appealing the decision, and it has made the case that the demand for fossil fuels needs to be reduced before attempting to constrain the supply.
The company also reported third-quarter profits of $4.13 billion, somewhat lower than its forecast of $5.31 billion. The drop is attributed to reductions in oil and gas production of 4% and 17%, respectively, as a result of Hurricane Ida in the United States and the COVID-19 pandemic.
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