Our greenhouse gas emissions
Shell tracks emissions released by our upstream and downstream facilities and works to reduce air pollution from our operations.
We report our greenhouse gas (GHG) emissions in line with the recommendations of the Intergovernmental Panel on Climate Change. Shell’s Health, Safety, Security, Environment and Social Performance (HSSE&SP) Control Framework defines standards and accountabilities at each level of the organisation, and sets out the procedures people are required to follow. For example, our environmental standards include the requirement to set up GHG and energy management plans.
Our 2015 base year GHG emissions were recalculated from 72 million to 76 million tonnes CO2 equivalent to reflect the impact of the former BG facilities and other structural changes. Therefore, on a like-to-like basis, the direct GHG emissions have decreased from 76 million tonnes in 2015 to 70 million in 2016.
Our overall GHG emissions decreased for the following reasons:
- overall reduction in flaring;
- Quest carbon capture and storage project in Canada’s oil sands safely injecting more than 1 million tonnes of CO2 per year;
- divestments, for example in Nigeria and the UK; and
- operational improvements across many facilities;
These decreases were partially offset by the inclusion of emissions from former BG facilities in our inventory as of February 1, 2016.
In 2016, around 45% of our GHG emissions came from the refineries and chemical plants in our Downstream business. The production of oil, gas and gas-to-liquids products accounted for slightly more than 50% of our GHG emissions, and our shipping activities for less than 2%. We continue to work on improving operational performance and energy efficiency to manage GHG emissions.
The indirect GHG emissions from the energy that we purchased (electricity, heat and steam) increased to 11 million tonnes on a CO2-equivalent basis in 2016, from 9 million tonnes in 2015, mainly due to the inclusion of former BG facilities in our portfolio. These emissions were calculated using a market-based approach, as defined by the World Resources Institute GHG Protocol.
We estimate that the CO2 emissions from the use of our refinery and natural gas products by others were around 600 million tonnes in 2016, which represents less than 2% of the world's emissions.
(See more on www.shell.com/ghg)