Oil giant Shell waters down its near-term emission cuts in strategy update
A Shell logo displayed on a sign at a gas station in Nakuru, Kenya.
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British oil giant Shell on Thursday announced plans to moderate its near-term carbon emissions cuts, while maintaining its pledge to become a net-zero company by the middle of the century.
In its latest energy transition strategy update, the oil and gas major said it is now aiming to reduce its net carbon intensity on the third-party use of products it sells by 15% to 20% by 2030, compared with a previous target of 20%.
Shell said it had also dropped its goal of a 45% reduction by 2035, citing “uncertainty in the pace of change in the energy transition.” The net carbon intensity targets are measured against a baseline of emissions in 2016.
“Our focus on value has led to a strategic shift in our power business towards select markets and segments,” Shell CEO Wael Sawan said in a statement. “As a result, we expect lower growth in sales of power overall. We have updated our net carbon intensity target to reflect that change.”
Shell said that by the end of 2023, it had achieved over 60% of its target to halve emissions from its operations by 2030, compared with 2016.
The company also said it achieved its target to reduce the net carbon intensity of the energy products sold last year, with a 6.3% reduction compared to 2016. Shell said this marked the third straight year it had hit its target.
Shell’s update comes as European energy majors continue to tweak their plans in the transition to clean-energy technologies. Last year, British rival BP said it was targeting a 20% to 30% emissions cut by the end of the decade, compared to a previous commitment to a 35% to 40% trim.
BP, which is also planning to become a net-zero company by 2050, said at the time that it needed to keep investing in oil and gas to meet global demand.
Activist investors have put pressure on fossil fuel companies to do more to align their emission reduction targets with the landmark 2015 Paris Agreement, while some have urged firms to scale back on green pledges and instead lean into their core oil and gas businesses.
The burning of fossil fuels, such as coal, oil and gas, is the chief driver of the climate crisis.
‘Exacerbating the climate crisis’
“With this backtrack, Shell bets on the failure of the Paris Climate Agreement which requires almost halving emissions this decade,” said Mark van Baal, founder of activist shareholder group Follow This.
“This backtracking removes any doubt about Shell’s intentions: the company wants to stay in fossil fuels as long as possible,” van Baal said.
“The board not only endangers the global economy by exacerbating the climate crisis, but also puts the company’s future at risk through policy interventions, disruptive innovation, stranded assets, and accountability for the costs of climate change.”
Chief executives of some of the world’s largest energy companies have repeatedly sought to fend off criticism, claiming that Big Oil is not to blame for the climate crisis and saying it isn’t possible to keep everyone happy in the energy transition.
Shell on Thursday reaffirmed its target to become a net-zero company by 2050, a pledge it first made in 2020 under previous CEO Ben van Beurden. The company said it planned to spend $10 billion to $15 billion on unspecified low-carbon solutions between 2023 and 2025.
Shares of Shell were 0.2% higher on Thursday morning. The London-listed stock price is around 1.3% lower year-to-date.
Lucid Motors (LCID) is recruiting more high-profile stars to spotlight its new luxury electric SUV, the Gravity.
The luxury EV maker is teaming up with some of the NBA’s biggest stars, Jalen Brunsen and Josh Hart, in its latest collaboration.
Lucid enlisted Jalen and Josh, teammates on the New York Knicks, for a new market campaign designed to celebrate “those who refuse to settle for the status quo.”
Keep a lookout this Wednesday, October 22, during the New York Knicks home opener against the Cleveland Cavaliers to see Jalen and Josh hype the Lucid Gravity electric SUV.
Lucid, Hart, and Brunson plan to showcase “how precise performance, cultural influence, and athletic excellence come together — on the court, on the road, and in the moments that move individuals.” The partnership is the latest as Lucid builds a roster of high-profile celebrities and athletes to promote the brand.
“To be one of the best, you have to be willing to do whatever it takes,” Brunson said, adding “It’s a commitment to improving every day, and never accepting that you can’t reach that next level. I see that same passion for excellence in Lucid.”
Lucid said the collaboration “underscores the brand’s mission to compromise nothing” as it builds a roster of high-profile celebs and athletes to promote the new Gravity electric SUV.
In August, Lucid teamed up with Timothée Chalamet, its first global brand ambassador, for an ad campaign called “Driven.”
Lucid also attended NFL star Travis Kelce’s, Kelce Car Jam last month. For every test drive, Lucid donated $87 to Kelce’s Eighty-Seven and Running Foundation. Kelce founded Eighty-Seven & Running in 2015 to mentor disadvantaged youth, help develop their skills, and motivate them to get out and do their best.
As it ramps up output, the EV maker has been actively promoting the Gravity. Last week, Lucid trolled Tesla on social media in a video asking Elon Musk’s Grok, “What’s the best luxury EV?”
Grok’s answer: The 2025 Lucid Air. Do you agree? ChatGPT and CoPilot said the same.
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Elon Musk has openly threatened to leave Tesla, or at least his role as CEO, if he doesn’t get his ridiculous compensation.
He is now saying the quiet part out loud.
Tesla shareholders are about to vote on a new, controversial compensation package for Elon Musk.
While many are focused on the ridiculous size of the stock options, which could be worth up to $1 trillion, many analysts have highlighted other problems with the package.
A Reuters report last week noted that, with business as usual and a market capitalization growth below the S&P average, Musk could still receive one or even two tranches of his compensation package, worth between $20 billion and $40 billion.
In short, under the rules of the package, Musk could receive the biggest payday in history for returning below average returns.
That’s on top of the CEO already having received more compensation from Tesla than the company has earned in profits since its existence.
One commentator on X pointed out the concern about the first tranche of the compensation plan. Instead of addressing the genuine concern, Musk responded by boasting about Tesla’s market capitalization and suggesting that he won’t be Tesla’s CEO if he doesn’t get the pay:
Tesla is worth more than all other automotive companies combined. Which of those CEOs would you like to run Tesla? It won’t be me.
The CEO then shared posts encouraging Tesla shareholders to vote for the shareholders meeting, which is happening on November 6th.
Electrek’s Take
There are many issues with this comment. First off, it completely ignores a real problem with the comp package. Even if you believe that Musk would deserve $1 trillion in compensation for bringing Tesla’s valuation to $20 trillion, the package shouldn’t allow for Musk to make tens of billions from below average return.
It looks like the package is being used as a trojan horse to dazzle shareholders with the promise of unlikely crazy returns when the more likely outcome is to give Musk what would still be a record compensation for Tesla delivering a below average return on investment.
The fact that Musk doesn’t want to address this clear issue is a red flag.
Furthermore, Musk is using a dirty card: you play by my rules or I’m gone.
This is what I previously called the ‘Tesla Dilemma’: Elon Musk is destroying Tesla’s profitable car business, but at the current valuation, his lies about self-driving and robots is what is keeping the stock alive.
Therefore, Tesla shareholders are disincentivized to vote against Musk if he threatens to leave because he would leave with his stock pumping lies – leading in the stock crashing.
He has a complete hold on Tesla and he is going to force shareholders to give him another ridiculous stock compensation package.
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