Big Oil 🛢️ Takes A Step In The Right Direction? Shell Commits to Net Zero

Net Zero

By 2050 Shell intends to reach net zero. 

Noble goal – but still doesn’t meet expectations outlined in the Paris Agreement. Normally when these type of headlines are out in the market a heavy dose of skepticism is required. 

Driven predominantly by investor pressure they have now decided – regardless of social situation – to continue their push towards decarbonization of their products and manufacturing processes. However, one key thing they cite – much like other oil giants – they cannot be accountable for the Scope 3 Emissions that occur when their products are used in the market. 

Ie. when you refuel at a Shell station the emissions resulting from the use of that oil is something they don’t want to be accountable for. This they understand makes up 85% of their total emissions. 

So how does Shell plan to attack this? The plan calls for cutting a large amount of scope 3 emissions in several ways.

  1. Changing their product mix over time to an emphasis on renewables, hydrogen and biofuels. Shell aims to reduce the “net carbon footprint” of products they sell by 30% by 2035 and 65% by 2050.
  1. Expanding use of carbon capture and natural ways to mop up CO2 like reforestation. Ie. Carbon offsets 
  1. Working with customers on their emissions-cutting efforts, and developing a method to track those reductions

However, Shell at this time has not disclosed the financial impact this commitment will have on their business. But just like the great Clayton Christensen says in Innovator’s Dilemma – Shell will have to be OK with losses in the next decade for longer term revenue.

Share this post →

DISCOVER CLIMATE STARTUPS & OPPORTUNITIES BEFORE IT HITS THE FRONT PAGE

A weekly newsletter helping climate founders and investors discover undercover climate startups, technologies and opportunities before everyone else. Written by founders, executives and investors with years across the climate-tech space. Subscribe for free today to grow your climate positive impact.

Related posts...

Lake Kivu • The Danger Of A Limnic Eruption

Lake Kivu is one of the African Great Lakes, located on the border between the Democratic Republic of the Congo (DRC) and Rwanda. Its claim to fame is not pristine waters, rare fish, or an elegant shoreline. Instead, Lake Kivu, along with Lake Nyos and Lake Monoun, share the deadly habit of sporadically belching massive gas clouds of carbon dioxide.

Read now ➜

Everyone Should Understand The Carbon Cycle

Measuring carbon levels is important because it is our planet’s natural thermometer. Earth’s atmosphere regulates temperature and will respond to extreme imbalances much like how the human body does once it reaches an internal temperature of around 104°F (40°C): the major organs that give us life will begin to break down.

Read now ➜

Discover Pre Series-A Climate Startups Weekly

Develop your market map of up-and-coming climate startups and market opportunities by subscribing to our weekly newsletter for free.