ASSESSMENT OF SHELL’S CLIMATE STRATEGY

The report finds that Shell's investment strategy prioritizes oil and gas expansion and shareholder returns over renewable energy, with 2030 production targets and LNG capacities significantly overshooting IEA Net Zero Emissions (NZE) levels. Shell's diversification into sustainable energy remains marginal, and the company has recently reduced its decarbonization targets for product carbon intensity.

• Shell's 2024 financial allocations heavily favored hydrocarbons and shareholders over climate solutions. For every dollar invested in its "Renewables and energy solutions" business, the company invested 7.2 dollars in oil and gas and distributed 9.0 dollars to shareholders via dividends and share buybacks.
• Shell's future capital expenditure (CAPEX) plan from 2025 to 2030 allocates only 9% to "renewable and energy solutions," while 90% is directed toward oil and gas-related operations, including 60% for the "upstream and integrated gas" segment.
• Shell's 2030 oil and gas production targets are not aligned with the IEA NZE scenario. Based on committed short-term expansion, production will be 22% above NZE alignment; if Shell pursues its target of a 1% annual increase in output, production will be 23% above NZE alignment.
• Liquefied Natural Gas (LNG) is a central part of Shell's expansion. The company's total net liquefaction capacity is projected to increase from 42.1 Mtpa to 58.4 Mtpa by 2030, overshooting the NZE scenario by 38.7%.
• Shell's diversification into renewable energy is marginal. By 2030, the company is projected to produce 48.2 times more energy from oil and gas than from renewables, accounting for less than 0.1% of global renewable energy production under the NZE.
• Shell continues to invest in unsustainable power generation, including plans for three new gas power units with an additional gross capacity of 752 MW, representing a 12% increase over current operating capacity.
• The company has weakened its climate targets, reducing its 2030 net carbon intensity reduction goal from -20% to a range of -15% to -20% compared to 2016 levels.

APA

Delaporte, L.-M., & Bogaert, A. (2025). ASSESSMENT OF SHELL’S CLIMATE STRATEGY. Reclaim Finance. https://reclaimfinance.org/site/wp-content/uploads/2025/05/202504_Shell_Climate-Strategy-Assessment.pdf

Chicago

Delaporte, Louis-Maxence, and Achille Bogaert. ASSESSMENT OF SHELL’S CLIMATE STRATEGY. Reclaim Finance, 2025. https://reclaimfinance.org/site/wp-content/uploads/2025/05/202504_Shell_Climate-Strategy-Assessment.pdf.

Wikipedia

{{cite report |last1=Delaporte |first1=Louis-Maxence |last2=Bogaert |first2=Achille |title=ASSESSMENT OF SHELL’S CLIMATE STRATEGY |publisher=Reclaim Finance |date=April 2025 |url=https://reclaimfinance.org/site/wp-content/uploads/2025/05/202504_Shell_Climate-Strategy-Assessment.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{delaporte2025assessment, author = {Delaporte, Louis-Maxence and Bogaert, Achille}, title = {{ASSESSMENT OF SHELL’S CLIMATE STRATEGY}}, institution = {Reclaim Finance}, year = {2025}, month = apr, url = {https://reclaimfinance.org/site/wp-content/uploads/2025/05/202504_Shell_Climate-Strategy-Assessment.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }