Shell (NYSE:RDS.A) is looking at ways to cut emissions by more than it has planned, although it disagrees with the recent Dutch court ruling and plans to appeal, chief executive officer Ben van Beurden said on Wednesday.
Two weeks ago, the District Court in The Hague ordered the oil supermajor to slash its carbon emissions by 45 percent by 2030 in a landmark ruling in a climate case brought by environmentalists that could set precedents for other oil companies.
The court ordered Shell to slash net carbon emissions by 45 percent within ten years and start complying with the ruling “immediately.”
Shell has emission-reduction targets, seeking to reduce its net carbon intensity by 6 to 8 percent by 2023 from 2016 levels, by 20 percent by 2030, and by 45 percent from 2016 levels by 2035 before hitting the 100-percent emissions target by 2050. These targets, the company said, include all of the emissions associated with its business operations as well as emissions generated from the use of its products by customers.
“Some two weeks on, I still feel disappointed that Shell is being singled out by a ruling that I believe does not help reduce global CO2 emissions,” van Beurden wrote in a post on LinkedIn.
The company is reviewing the court case and expects to appeal, he said, adding that Shell is determined to rise to the challenge to help the world achieve the Paris Agreement goals.
“The court ruling has not changed the fact that Shell is more determined than ever to play its part and lead in this global challenge,” van Beurden wrote.
“But now we will seek ways to reduce emissions even further in a way that remains purposeful and profitable. That is likely to mean taking some bold but measured steps over the coming years,” he added.
“Still, for a long time to come we expect to continue providing energy in the form of oil and gas products both to meet customer demand, and to maintain a financially strong company. We need this financial strength to keep attracting investment in Shell,” van Beurden noted.
By Tsvetana Paraskova for Oilprice.com