How Shell Plans to Achieve Net Zero Emissions by 2050

As part of the Adweek Sustainability Playbook, Shell Brands International AG CEO & Vice-Chairman Dean Aragón shares the journey to decarbonization and the steps to achieve net-zero emissions. THE CHALLENGE How do we as an energy business achieve net-zero emissions by 2050 while meeting the world's growing demand for energy, respecting nature, powering lives, and generating shareholder value? THE APPROACH Last February, we launched our Powering Progress strategy, outlining exactly our approach to this undertaking, which includes Shell’s three roles—one as an energy provider, a user and a partner for change. This journey towards net-zero emissions means we are addressing all the emissions from the energy we sell, whether we produce it or others produce it. However, the strategy also recognizes that we need to work together and start addressing the specific contexts, as the variables vary when looking at them throughout different sectors, like aviation, shipping, commercial road, transport, and power generation sectors. Together with our customers and partners, we work on transforming this incredible challenge into an opportunity. It’s worth noting that we don’t only work on achieving net-zero emissions but also help our partners achieve their own business agenda. For example, Rolls Royce and Shell have collaborated for over 100 years, pioneering technology fuels and infrastructure that have shaped commercial aviation. Our focus is to decarbonize aviation through the delivery of Sustainable Aviation Fuel (SAF), a clean substitute for fossil jet fuels. In a short film that captures Shell’s and Rolls Royce’s partnership, Rolls Royce’s Chief Technology Officer, Paul Stein, admits that aviation is vital to our connected world. But still, as an industry, we must reduce its net carbon emissions. So the question is, how do we do it? Stein recognizes that there’s no single solution for electric aircraft and hybrid technology. But that undoubtedly, we have a part to play, as does hydrogen. He believes SAF is crucial to powering today's aviation fleets while reducing conventional jet fuel carbon emissions. But unfortunately, Stein points out that we don’t have anywhere near enough SAF, representing less than 1% of the total aviation fuel supply. Similarly, Shell’s President of Global Aviation, Anna Mascolo, mentions Shell is helping to grow the demand for SAF by working with its industry partners and stakeholders. For example, Mascolo says that Shell supports companies like Amazon Air and DHL Express to become part of the solution. In addition, the energy company also enables SAF supplies through investment in production, supply technology, policy development, and collaboration with all parties within the aviation ecosystem. To move the needle forward, Shell recognizes that it needs to transform its portfolio. So far, it is growing its renewables and energy solutions portfolio with investments in lower-carbon technology, such as hydrogen. It is also exploring technologies that are converting trash to fuel. And it is massively expanding its electric charging network through the brand offer Shell Recharge and its solar and wind power offers. Lastly, Shell has the ambition to provide a reliable electricity supply to 100 million people, primarily in Africa and Asia, who currently do not have this yet. THE IMPACT Shell has switched from ambitious targets to specific ones. And against its 2016 baseline, Shell’s target is to reduce the carbon intensity of all the energy it sells by 2050, with clear milestones in 2023, 2030, and 2035. KEY TAKEAWAYS To enable progress with the growing energy demand, the energy system must decarbonize.We can’t do this alone. As much as we can work on providing cleaner energy products, we also have to work on-demand and with our customers.We have to acknowledge the differences among all sectors and customers because decarbonization needs to work within the reality of all different segments. Why Economic Impact is a Critical Component of Facebook’s Sustainability Plan