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Shell's journey to net zero
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has a Target to become a net zero
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emissions energy business by 2050. you
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may have heard about this kind of Target
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but what does this actually mean Net
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Zero means not adding to the total
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emissions in the atmosphere when we
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produce and process energy and when
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customers use the energy we sell
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our Target lies at the heart of our
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powering progress strategy and we
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believe it supports the more ambitious
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for one of the United Nations Paris
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agreement which is to limit the rise in
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global average temperature this Century
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to one and a half degrees Celsius above
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pre-industrial levels let's be clear
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this is not something shell can realize
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alone to get there is anxiety as a whole
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needs to act
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now
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to understand how best to address our
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emissions we first need to know how much
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we are generating and where these
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emissions come from so let me briefly
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explain how shell defines and measures
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its emissions
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we use the globally recognized
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greenhouse gas protocol
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which categorizes emissions as scope 1
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scope 2 and scope 3.
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so what are scope 1 emissions
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they are the direct emissions from all
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of our operations
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which includes oil and gas exploration
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and production
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processing refining and chemicals
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production
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scope 2 emissions are indirect emissions
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the emissions from the energy we buy to
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run our operations such as electricity
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Steam and Heat
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and finally scope 3 these are primarily
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our customers emissions from their use
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of the Energy Products that we sell
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but also the life cycle emissions of
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Energy Products we buy from others and
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then sell to our customers
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to get a sense of what this means let's
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visualize Shell's emissions for 2022.
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of the total some 58 million tons of CO2
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equivalent were from emissions under our
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operational control
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this included scope one this part here
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which accounted for 51 million tons
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and scope 2 emissions this part 7
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million tons
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in comparison
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1174 million tons of emissions resulted
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from scope 3 emissions
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by addressing the emissions of customers
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use of our Energy Products and the
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emissions that come from making all the
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energy we sell our Target is one of the
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most comprehensive in the energy
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industry
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so how are we going to achieve our
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Target we have set an absolute emissions
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reduction Target at 50 by 2030 compared
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to 2016 levels on a net basis covering
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all scope 1 and 2 emissions under our
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operation control by the end of 2022 we
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were already more than halfway towards
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achieving this target we have also set
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specific carbon intensity targets for
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the short medium and long term to manage
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the change required in our business and
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every unit of energy we sell with
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executive pay tied to the short-term
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targets we met the first of these
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short-term Targets in 2021 and the
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second of these in 2022 we've also
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identified how best to tackle the
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emissions from each scope in different
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ways take scope 1 emissions the 51
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million tons over half of these come
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from our Downstream businesses primarily
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refining and chemicals they also come
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from emissions from integrated gas which
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is the production of gas to liquids GTL
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and the production of liquefied natural
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gas or LNG
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and from Upstream so oil and gas
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production
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the lower our scope 1 emissions were
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working on various plants such as
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Transforming Our refineries and chemical
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plants into integrated energy and
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chemical parks to make them more
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efficient and making improvements to
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existing operations by addressing
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methane intensity eliminating routine
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flaring and using carbon capture and
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storage technology to safely lock away
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CO2 Underground
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to reduce scope 2 emissions the 7
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million tons shell is already shifting
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to purchasing Renewable Power to run our
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operations by the end of 2022 we had
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already reduced our scope 1 and scope 2
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absolute emissions by 30 percent
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compared to 2016.
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lastly successfully addressing scope 3
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emissions the
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1174 million tons this means a big
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change in the Energy Products we
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currently sell and in the demand for
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products this is Central to our powering
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progress strategy
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means offering low and zero carbon
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products and solutions to our customers
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to help them avoid reduced and
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compensate their emissions critically it
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also means working with customers and
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others to transform energy use and
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encourage the uptake of these lower
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carbon products together we must find
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solutions to bring down the cost of
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Supply by encouraging the right mandates
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and investment in infrastructure as well
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as ensuring customers vehicles and
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Equipment are ready for our products
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across all sectors
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afraid as a viable alternative to diesel
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shell is providing biofuels hydrogen and
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charging Services whilst jointly working
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on the required changes to enable the
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shift to these products
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in person Mobility drivers switching to
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a battery electric car or van can choose
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shell charging as an alternative to
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petrol in Home Heating shell Energy's
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renewable electricity is a viable
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alternative to gas once customers have
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installed the right equipment
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and hard to decarbonize sectors like
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Aviation marine and Industry different
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Energy Solutions driven by government
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policy technology availability and the
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pace of its adoption will be required
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high quality carbon credits including
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from nature-based projects could also
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play a valuable role in decarbonization
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of course we recognize that different
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countries will choose different
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solutions on various timelines but
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what's certain is we have to act
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together
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significant collaboration between
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governments industry customers and
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society as a whole is vital in
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transforming both supply and demand
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sector by sector and the ambitious
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action needed at all levels of
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government and internationally is
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recognized in Shell's global climate and
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energy transition policy principles
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shell is working as a partner for
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sustainable economy-wide change
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we are providing energy needed today and
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for tomorrow as we continue to
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decarbonize our products and services
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powering progress together
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End