Shell plc

If required, we may choose to use high-quality carbon credits to offset any remaining emissions from our operations, in line with the carbon mitigation hierarchy of avoid, reduce and compensate or to meet local regulatory requirements.

We have set an interim target to achieve a 50% reduction in absolute Scope 1 and 2 emissions under our operational control by 2030 on a net basis, when compared with 2016.

We set a target to eliminate routine flaring from our upstream-operated assets by 2025 [A]. With effect from January 1, 2025, SPDC has ceased routine flaring of associated gas, with the completion of essential gas capture projects and the shut-in of remaining facilities that do not yet meet the applicable emissions standards. We have therefore met our target to eliminate routine flaring from our upstream-operated assets by 2025 as of this date. We also aim to maintain methane emissions intensity for operated oil and gas assets below 0.2% and achieve near-zero methane emissions intensity by 2030.

[A]This target was subject to the completion of the sale of The Shell Petroleum Development Company of Nigeria Limited (SPDC). As detailed elsewhere in this report, on March 13, 2025, Shell completed the sale of SPDC to Renaissance.

See "Working to reduce our absolute Scope 1 and 2 emissions" on page 120.

Supporting our customers in achieving net-zero emissions

The transport sector is by far the largest market for our oil products. We are building on our customer relationships and expertise to help drive the decarbonisation of passenger cars, heavy-duty trucks, planes and ships. Changes to the supply of energy products and decarbonising the energy system require structural changes in the end-use of energy.

This requires energy users to improve, update or replace equipment so that they can use carbon-based energy more efficiently, or switch to low- and zero-carbon energy. For example, replacing internal combustion engine vehicles with electric vehicles, converting heavy-duty transport to biofuels such as renewable diesel, and, in the future, hydrogen and its derivatives.

Such structural changes are expected to help to trigger transitions along the supply chain of individual sectors and across sectors, including the production of energy and emissions over time. The IEA estimates that these changes in the end use of energy will require substantial investment.

The World Energy Outlook 2024 report by the IEA includes an estimate that by 2035 for every one US dollar spent on fossil fuels, a further $20 will need to be spent on clean energy (low-emissions fuels, and energy-efficient and low-emissions power) under the NZE50 Scenario.

We are seeking and will continue to seek to change the mix of energy products we sell to our customers as their needs for energy change. Emissions resulting from customer use of our energy products make up a large proportion of Shell's reported emissions. We believe we can make the greatest contribution to the energy transition by helping to enable our customers to switch to low-carbon energy products and services. We are working to:

￮develop low- and zero-carbon alternatives to traditional fuel, including biofuels, and other low- and zero-carbon gases;