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Shell to seek shareholders support for energy transition strategy

April 16/2021

MOSCOW (MRC) -- Shell has issued its Energy Transition Strategy publication, which will be put to shareholders for an advisory vote at the companys Annual General Meeting on May 18, 2021, as per the company's press release as of 15 April.

This is the first time that an energy company has asked shareholders to vote on its energy transition strategy.

The decision to seek an advisory vote on its transition strategy was first announced in February when the energy major laid out details of plans to further grow its renewables and power business.

"As we transform our business, it is more important than ever for shareholders to understand and support our approach," CEO Ben van Beurden said in a statement. "We are asking our shareholders to vote for an energy transition strategy that is designed to bring our energy products, our services, and our investments in line with the goal of the Paris Agreement and the global drive to combat climate change."

Shell said its shareholders will vote on a new Energy Transition Strategy publication which sets out the company's target to achieve net-zero emissions by 2050. The vote is purely advisory and will not be binding, Shell said, noting that its board and executive committee will remain responsible for setting and approving Shell's energy transition strategy.

One of the first international oil and gas companies to set targets for reducing the net carbon footprint of its energy products, Shell has deepened its carbon emissions targets in the last year as pressure mounts on oil majors to help mitigate climate change.

Using 2016 as a baseline, Shell plans to reduce the net carbon intensity of the energy products it sells by 6%-8% by 2023, 20% by 2030 and 45% by 2035, before reaching 100% in 2050. The company also aims to double its annual electricity sales by 2030, to 560 TWh, and have 15 million retail and business customers.

Shell will publish an update to its Energy Transition Strategy publication every three years until 2050. Every year, starting in 2022, it will also seek an advisory vote on its progress towards its plans and targets.

As MRC wrote previously, Shell says it will invest between USD4-5 billion annually to grow its chemicals and products business as part of a wider rebalancing of its group portfolio to reach its net-zero carbon emissions goal by 2050.

We remind that Royal Dutch Shell has reported an outage at its olefins plant in Deer Park, Texas, USA, on 5 January, 2021. The plant flared for 16 hours following unspecified process upset. Maximum steam cracker operating rate in Texas falls to 89%.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 241,030 tonnes in January 2021 versus 217,890 tonnes a year earlier. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, PP shipments to the Russian market reached 141,870 tonnes in January 2021 versus 123,520 tonnes a year earlier. Supply of homopolymer PP and PP block copolymers increased.

Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
Author:Margaret Volkova
Tags:Europe, PP, PE, crude and gaz condensate, PP block copolymer, homopolymer PP, propylene, LDPE, HDPE, ethylene, petrochemistry, Shell, Russia, USA.
Category:General News
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