Shell has sought to downplay fears that growing demands for low-carbon energy will impact its oil and gas business operations in the long term.
The company has released an energy transition report outlining its strategy to manage climate change related risks through the global transition from fossil fuels to renewable energy.
The report also contains the company’s response to the recommendations in the Financial Stability Board’s recently published Task Force on Climate-related Financial Disclosures (TCFD).
Shell CEO Ben van Beurden said: “Understanding what climate change means for our company is one of the biggest strategic questions on my mind today. In answering that question, we are determined to work with society and our customers.
“We will help and inform and encourage progress towards the aims of the Paris Agreement. And we intend to continue to provide strong returns for shareholders well into the future.”
The report highlighted that Shell will continue to operate its oil and gas businesses, while simultaneously positioning itself to embrace the shift to lower-carbon energy.
It is estimated that the company will have produced around 80% of its existing proved oil and gas reserves by 2030, which will help the firm insulate its investments despite the global interest in moving away from fossil fuels.
In addition, the company intends to improve its CO2 intensity performance and invest in energy projects such as wind generation in the Netherlands, supplying power to retail customers in the UK and offering hydrogen refuelling and electric-car charging.
Last year, Shell unveiled plans to half its energy products’ net carbon footprint by 2050. It also doubled its budget for the development of new energies to $2bn a year until 2020.
