Shell shareholders will hold an advisory vote on the company’s new Energy Transition Strategy.
The strategy sets out goals for Europe’s largest oil and gas company to achieve net-zero emissions by 2050, in accordance with global climate goals set out in the Paris Agreement within the United Nations Framework Convention on Climate Change.
The plan involves a greater emphasis on natural gas and renewables generation, cooperation with other industries and a scaling back in exploration. It also reveals Shell’s short- and medium-term climate targets and decarbonization strategy, along with a customized approach towards climate-related policy.
According to the announcement, the energy giant aims to publish an update to its Energy Transition Strategy every three years until 2050.
The company follows continuing engagement with shareholders, including with Climate Action 100+, which represents investors with assets of approximately $54 trillion.
Shell’s Board and Executive Committee is responsible for approving the company’s energy transition strategy. However, the company claims that the vote is purely advisory and will not be binding.
Shell last year began a transition to lower carbon energy with the so-called Project Reshape, which aims to overhaul spending toward renewable energy and power. The plan would see Shell cut up to 40% off the cost of producing oil and gas.