- Shell has said that its net-zero target is no longer conditional on society’s progress.
- The company had earlier aimed to achieve the feat "in step with society and customers".
In line with the British government's net-zero target, energy giant Shell has said that it aims to cut its carbon emissions to Net Zero by 2050, regardless of progress by its customers or the broader society.
Chief Executive Officer Ben van Beurden, in a report published on the company's energy transition progress, said that the target to achieve net-zero emissions by the middle of the century is no longer conditional on society's progress. The announcement is an ambitious upgrade over the company's previous target to achieve the feat "in step with society and customers".
In the progress report, Shell highlighted emissions from its own operations, known as Scope 1, and from the energy, it buys to run them, called Scope 2, which has gone down by 18% between 2016 and 2021. To step up the pace of change, it aims to reduce these emissions by 30% by 2030.
We can describe Net zero emissions as a balance between the amount of greenhouse gas produced in contrast to how much is removed. As per estimates by International Energy Agency, indirect GHG emissions from oil and gas operations make up about 5.2 billion tonnes of carbon-dioxide equivalent.
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Let's take a look at three FTSE-listed oil and gas companies that have set carbon reduction goals.
Shell Plc (LON: SHEL)
Shell Plc is a UK-based oil and gas firm that operates in over 70 countries. With the Russia-Ukraine crisis putting a huge impact on the oil and gas industry, Shell recently announced that it could see losses of about US$4-5 billion in the first quarter, due to the suspension of its operations in Russia. The company's current market cap stands at £165,015.10 million and it gave a return of 58.40% to its shareholders in the last one year as of 20 April 2022. Its shares were trading at GBX 2,217.50, down 0.49% at 2:43 pm GMT+1 on Wednesday.
Harbour Energy Plc (LON: HBR)
The British North Sea's biggest oil and gas producer Harbour Energy is another company that has set an ambitious target to achieve net zero for its Scope 1 and Scope 2 greenhouse gas emissions by 2035. Harbour Energy Plc’s market cap stands at £4,807.22 million as of 20 April 2022. The stock price has climbed 35.63% in the last one year while its year-to-date return stands at 46.78%. The company's shares were trading at GBX 521.80, down 1.55% at 2:48 pm GMT+1 on Wednesday.
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Energean Plc (LON: ENOG)
Energean claims to be the first LSE-listed exploration and production (E&P) firm to commit to becoming a net-zero emitter by 2050. It reported an outstanding business performance in 2021, with its full-year revenue climbing to US$497 million and adjusted EBITDAX reaching US$212 million.
Energean Plc’s market cap stands at £2,202.36 million as of 20 April 2022. Its stock price stood at GBX 1,201.00, down 1.61% at 2:55 pm GMT+1 on Wednesday.
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Tags: Net Zero, Shell, Harbour Energy, Energean Plc, Emissions