Shell rules out more ambitious goal to cut customer emissions

LONDON – Shell has ruled out setting targets to cut emissions in absolute terms from customers' use of its products, its chair said in a report published on Thursday as the energy company faces increased activist and investor pressure over climate.

End-user emissions, referred to as Scope 3, account for about 95% of the energy company's greenhouse gas pollution and some investors have urged Shell to introduce medium-term targets to reduce them in absolute terms.

"The Board has considered setting a Scope 3 absolute emissions target but has found it would be against the financial interests of our shareholders and would not help to mitigate global warming," Shell Chairman Andrew Mackenzie said in the report.

Shell said that such Scope 3 targets would force it to reduce sales of oil products and natural gas, "effectively handing over customers to competitors".

The rejection of the tougher emission reduction targets comes after Shell's new chief executive, Wael Sawan, signalled this month that the company was reviewing plans for a gradual reduction to oil output.