Greenhouse gas emissions

GHG breakdown

Emissions by boundary and scope

Below we report emissions on an operational control (100% of emission from companies and joint ventures where we are the operator) and equity basis (equity share of emissions from companies and joint ventures).

The direct (Scope 1) emissions come from the facilities under the operational control or the equity boundary. The energy indirect (scope 2) emissions come from the facilities of others that provide electricity or heat and steam to our operations.

Scope 3 emissions are those emissions that we estimate come from the use of our refinery and natural gas products as reported in the Annual Report.

See a more detailed breakdown of our 2018 scope 3 (other indirect) emissions.

Emissions by business sector

Here we report the breakdown of emissions by business sector. These are the direct and energy indirect emissions on both an operational control and equity basis reported in million tonnes CO₂ equivalent.

Direct (Scope 1)

Energy Indirect (Scope 2)

Emissions intensity

Below we report emission intensities for Upstream and Integrated Gas, refining and chemical facilities under our operational control (100% of direct and energy indirect GHG emissions normalised by an appropriate production value).

[A]  In tonnes of total direct and energy indirect GHG emissions per tonne of oil and gas available for sale, liquefied natural gas and gas-to-liquids production in Integrated Gas and Upstream.

[B] High value chemicals include olefin products (ethylene and propylene) plus the contained butadiene, benzene, acetylene, and high purity hydrogen production.

[C] UEDC^TM (Utilised Equivalent Distillation Capacity) is a proprietary metric of Solomon Associates. It is a complexity-weighted normalisation parameter that reflects the operating cost intensity of a refinery based on size and configuration of its particular mix of process and non-process facilities.

We undertake external verification of our operational control and equity GHG data to a level of limited assurance at the Shell Group and business level. The operational control verification for the previous year’s data is undertaken in February and the equity work is undertaken in May. The assurance statements become available in March and June respectively.

1. Limited assurance of the 2019 direct and energy indirect data under operational control

2. Limited assurance of the 2019 scope 3 emissions from the use of refinery products and natural gas

3. Limited assurance of the 2018 direct and energy indirect data on an equity basis

In addition, we undertake external verification to a level of reasonable assurance at the major installations where we have operational control. These audits are conducted under the local regulated scheme or, in the absence of regulation, under Shell’s own program which uses external auditors from a variety of organisations.

Reasonable assurance of the 2018 direct and energy indirect data under operational control

Challenges with equity data

Approximately one quarter of the equity data comes from sources outside our data systems and carries potentially greater uncertainty. The quantification and hence verification of equity emissions takes longer than operational control emissions as we are dependent on receiving data from other parties and reporting timelines vary.

NCF assurance

The Net Carbon Footprint (NCF) is determined by first estimating the emissions intensity for each of the energy product supply chains in Shell’s portfolio; this is done using established lifecycle analysis principles and includes both the emissions associated with the production and processing of energy products and the emissions associated with their use. The individual intensities are then aggregated into a single value, with the weighting for each product determined by its sales volume, emissions captured in sinks are deducted to give the final net value.

Shell’s Net Carbon Footprint values for 2016 to 2019 are shown in the assurance statements below. We express our Net Carbon Footprint as the grams of CO₂ equivalent per megajoule (gCO₂e/MJ) produced for each unit of energy delivered to, and used by, a consumer.

We undertake external verification of our Net Carbon Footprint values to a level of limited assurance at the Shell Group level. This external verification takes place around February. The assurance statements become available in March.

1. Limited assurance of the 2016 Net Carbon Footprint
2. Limited assurance of the 2017 Net Carbon Footprint
3. Limited assurance of the 2018 Net Carbon Footprint
4. Limited assurance of the 2019 Net Carbon Footprint

Shell welcomes the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

The TCFD is a global initiative to get companies across all sectors to assess climate-related risks and opportunities. It recommends that companies disclose information in four areas: Governance, Strategy, Risk Management, Targets and Metrics. Shell supports the work and objectives of the TCFD. 

Shell discloses TCFD-relevant information through different channels:

• The Shell Annual Report/20-F provides information on our governance and risk management of climate change.
• Our Shell Energy Transitions Report describes our strategy to remain resilient and thrive through climate-related risks and opportunities.
• The annual Shell Sustainability Report publishes relevant climate-related emissions performance data.
• Periodic Shell scenario publications share our analysis and understanding of the ways the energy system could evolve over the long term.
• Our company website contains further relevant information such as equity emissions performance data, executive speeches, feature articles and news items. 

This table shows where to find Shell disclosures that are related to recommendations by the TCFD in Shell reports, publications and websites: