Oil super major Shell is “ahead of the curve” on facing up to climate change responsibilities, its boss said today.
Green investor groups have been putting increasing pressure on oil companies to clean up their acts in recent times.
In December, Shell revealed plans to link pay for its top brass to the achievement of emissions targets.
Shell said it would start setting targets for shorter periods in an effort to cut the net carbon footprint of its energy products by around half by 2050, and 20% by 2035.
Today, Shell chief executive Ben van Beurden said the company was “leading the industry” when it comes to taking action on the energy transition.
He said: “We are ahead of the curve when it comes to our role as a responsible company in the Paris Agreement context.”
Mark van Baal of Follow This, a Netherlands-based shareholder group, said recent investments showed Shell was putting its money where its mouth is.
The company invested more than £600 million it its New Energies renewables division last year.
Mr van Ball said: “With these investments Ben van Beurden shows that Shell means business with the energy transition.”
Follow This describes itself as a “group of responsible shareholders in oil and gas companies”, including Shell, BP, ExxonMobil, Chevron, and Equinor.
It organises shareholder support for oil and gas companies to commit to the goal of the Paris Climate Agreement to limit global warming to well below 2 degrees C.
Commenting on Shell’s strong financial performance, Mr van Baal added: “Shell is now in an excellent position to materialize its leadership in the energy transition.
“The company can invest the high earnings from fossil fuels in new business models.”