The Netherlands: Lower-Carbon Energy Shell's Strategy for Energy Transition
Shell has published a report, outlining its strategy for a transition to lower-carbon energy. The Shell Energy Transition Report describes its understanding of the transition and what it means for the company.
Den Haag/The Netherlands — Shell CEO Ben van Beurden sees one of the biggest strategic questions in understanding what climate change means for his company. In answering that question, he was determined to work with society and the customers.
The report contains the company’s principal response to the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures and demonstrates the company’s near- and mid-term financial and portfolio resilience, even against its recently-published and most rapid energy transition scenario, known as Sky. It also explains how the company’s capacity to adapt to the transition should allow it to thrive in the longer term by supplying the types of energy customers will need over the coming decades. For the British company, this means that they will still sell oil and gas, while preparing its portfolio to move into lower-carbon energy, when this makes commercial sense, said the company in a statement.
In the medium term Shell would grow its business in areas it expects to be important in the energy transition, while reducing costs and improving its CO2-intensity performance. The company is expanding in the power market as it expects the energy system to increasingly electrify, and it is adjusting its businesses to meet changing demand in different countries. This includes investments in areas such as wind generation in the Netherlands, supplying power to retail customers in the UK and offering hydrogen refuelling and electric-car charging.