Ourprogresstowardsnetzero#PoweringProgressShellplcEnergyTransitionProgressReport2022ContentsDesignandproduction:Friendwww.friendstudio.comImplementation:nexxarwww.nexxar.comPrint:ToppanMerrillIntroduction02Chair’smessage04ChiefExecutiveOfficer’sintroduction06Thepathtonetzero07Ourprogresstowardsnetzero08CarbonperformanceataglanceOurperformance10Absoluteemissions10Absoluteemissionsprogress11Netcarbonintensity13ReducingcarbonintensityDecarbonisingourportfolio16Transformingtheenergysystem17Electricity18Hydrogen19Biofuels20Conventionalfuels21Infocus:Carboncaptureandstorage21Infocus:Carboncredits22EnergytransitioninactionFinancialframework24Investmentsandreturns25InvestinginnetzeroPoliciesandgovernance27Climatepolicyengagement27Climategovernance28Ajusttransition28ClimatestandardsandbenchmarksLitigationandactivism31ClimatelitigationandactivismIntroductionandsummaryWelcometoShell'sEnergyTransitionProgressReport.ThisreportaimstoupdateshareholdersandwidersocietyonhowShellhasprogressedin2022againsttheenergytransitionstrategyweannouncedin2021.02Chair’smessage04ChiefExecutiveOfficer’sintroduction06Thepathtonetzero07Ourprogresstowardsnetzero08CarbonperformanceataglanceIntroductionOurperformanceDecarbonisingourportfolioFinancialframeworkPoliciesandgovernanceLitigationandactivism01ShellEnergyTransitionProgressReport2022Chair’smessageSirAndrewMackenzieChairOursecondEnergyTransitionProgressReportcomesastheRussianwarinUkrainecontinuestohaveadevastatingeffectonthelivesofmany.Theconflicthasalsohighlightedtheneedforaglobalsupplyofsecureandaffordableenergy.Amidthisperiodofheighteneduncertainty,wehaveworkedhardtokeepenergyflowingtohouseholdsandbusinessesaroundtheworld.In2022,Iwitnessedfirst-handhowourstaffdivertedenergysuppliestowheretheyweremostneeded.Intotal,wedelivered194cargoesofliquefiednaturalgastoEurope–almostfivetimesourusualaverage.Thisworkhelpedtoavertthethreatofblackoutsandtobuildupenergysuppliesaheadofnextwinter.Againstthisbackdrop,wemadegoodprogressinputtingourenergytransitionstrategyintoaction.Aswedeliveredtheoilandgastheworldneedstoday,wereducedcarbonemissionsfromouroperationsby30%bytheendof2022,comparedwith2016onanetbasis.Thisismorethanhalfwaytowardsourtargetofa50%reductionby2030.Globalenergy-relatedcarbonemissionsincreasedbyaround4%overthesameperiod.[A]Wecontinuedtoworktowardsbecominganet-zeroemissionsenergybusinessby2050bymakingsignificantinvestmentsinsolarandwindpower,biofuelsandhydrogen.Forexample,wemadeourbiggestacquisitionintheenergytransitionyetwiththepurchaseofDenmark’sNatureEnergyforaround$2billion.ThisacquisitionmakesusEurope’slargestproducerofrenewablenaturalgas,whichismadefromagricultural,industrialandhouseholdwaste.Renewablenaturalgascanbeusedbycustomersinsectorssuchascommercialroadtransportandshipping.Thisispartoftheworkweareundertaking,sectorbysector,toidentifythelow-andzero-carbonproductsthatourcustomersneedtoreducetheiremissions.Wecontinuedtobuildinfrastructuretohelpourcustomersswitchtolow-andzero-carbonenergy.In2022,forexample,weincreasedthenumberofelectricvehiclechargersweownedoroperatedby62%toaround139,000,comparedwiththepreviousyear.Thedevelopmentofnewtechnologiesisvitaltodecarbonisingourownoperations,aswellasreducingtheemissionsforourcustomers.In2022,welaunchedtheEnergyTransitionCampusAmsterdamintheNetherlands,whichcreatesanopportunityforSh...