Notice of 2022 AGM and Shells Energy Transition Progress Report – Yahoo Finance

London, April 20, 2022

SHELL PLC

NOTICE OF 2022 ANNUAL GENERAL MEETING AND SHELLS ENERGY TRANSITION PROGRESS REPORT

Shell plcs 2022 Annual General Meeting (AGM) scheduled to be a hybrid meeting, facilitating both physical and virtual attendance

Board requests shareholder support for Companys annual progress on its energy transition strategy

Shareholders encouraged to vote in advance of the AGM, but voting enabled during the meeting

Today, Shell plc (Shell) posted its Notice of 2022 Annual General Meeting (the Notice), which can be viewed and downloaded from http://www.shell.com/agm. The Notice states that the AGM is scheduled to be held at Central Hall Westminster, Storeys Gate, Westminster, London, SW1H 9NH, United Kingdom at 10:00 (UK time) on Tuesday May 24, 2022.

Shells Board requests support for the Companys annual progress on its energy transition strategy Shells Energy Transition Progress Report has also been published today. The document is published simultaneously with the Notice and shall be deemed to be incorporated in, and form part of, the Notice.

At last years AGM, 88.74% of Shells shareholders that voted, supported Shells Energy Transition Strategy. Shell is implementing that strategy and this year the Board is asking shareholders to support the Companys progress by submitting Shells Energy Transition Progress Report to a shareholder advisory vote.

Although the Shell Energy Transition Progress Report is included in this announcement, we recommend you view the online PDF of the document, which is available at http://www.shell.com/agm.

Arrangements for the 2022 AGMAt the time of this announcement, it is anticipated that the AGM will be a hybrid meeting. This provides three ways in which shareholders can follow the proceedings:i) attending and participating in person; ii) attending and participating in the webcast by registering through an electronic platform (virtually attending); or iii) simply watchingthe webcast (www.shell.com/AGM/webcast). Shareholders not physically present at the meeting that want to vote or ask questions at the meeting, should access the virtual meeting by registering through the electronic platform.

Story continues

More information can be found in the Notice and via the website referred to above.

Shareholders are encouraged to register in the Keep up to date section of the Shell website at http://www.shell.com/investors to receive the latest AGM news.

Shareholder questionsA question-and-answer session will be held during the AGM and will allow in-person and virtual participation. Instructions about how to ask a question will be provided to shareholders once the meeting has been accessed on May 24, 2022. Further information can also be found on pages 20 and 23 of the Notice, available on our website at http://www.shell.com/agm.

VotingIt is as important as ever that shareholders cast their votes in respect of the business of the AGM. We strongly encourage our shareholders to submit their proxy voting instructions ahead of the meeting. Any advance voting must be done by completing a proxy form or submitting proxy instructions electronically. We strongly encourage you vote as early as possible.

If appointing a proxy, shareholders are strongly encouraged to appoint the Chair of the meeting to ensure their appointed proxy is present and can vote on their behalf.

National Storage MechanismIn accordance with the Listing Rules, a copy of each of the documents below have been submitted to the National Storage Mechanism and are/will be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

Annual Report and the Form 20-F for the year ended December 31, 2021

Notice of the 2022 Annual General Meeting

Shell Energy Transition Progress Report

Notice of Availability of Shareholder Documents

Proxy Form relating to the 2022 Annual General Meeting

The Annual Report and the Form 20-F for the year ended December 31, 2021 can also be viewed and downloaded from the Companys website: http://www.shell.com/annualreport.

Printed copies of the Notice and associated documents will be despatched to those shareholders who have elected to receive paper communications.

Shell plcEnergy Transition Progress Report 2021

CONTENTS

01 INTRODUCTION02 Chairs message04 Chief Executive Officers introduction06 Carbon performance at a glance07 Progress summary

08 OUR PERFORMANCE09 Absolute emissions11 Net carbon intensity

14 SECTORAL DECARBONISATION15 Transforming the energy system16 Building new supply chains19 Changing demand across sectors

23 FINANCIAL FRAMEWORK24 Investments and returns25 Investing in net zero

26 POLICIES AND GOVERNANCE27 Climate policy engagement27 Climate governance28 A just transition29 Climate standards and benchmarks

31 LITIGATION AND ACTIVISM32 Climate litigation and activism

33 MILESTONESINTRODUCTION AND SUMMARY

Welcome to the Shell Energy Transition Progress Report. This report aims to update investors and wider society on how Shell is progressing with the energy transition strategy that investors supported in 2021.

02 CHAIRS MESSAGE04 CHIEF EXECUTIVE OFFICERS INTRODUCTION06 CARBON PERFORMANCE AT A GLANCE07 PROGRESS SUMMARY

CHAIRS MESSAGE

Sir Andrew Mackenzie, Chair, Shell plc

As we publish this report, the war continues in Ukraine. We are working hard to ensure the safety of our staff and contractors, and to support relief efforts. We have also announced our intention to withdraw from Russian oil and gas.

As well as being a human tragedy, the war has led to rising energy prices and uncertainty about supplies.

This extreme disruption in global energy markets has shown that affordable, secure, and reliable energy cannot be taken as a given. It must be protected and managed, through international co-operation: companies, governments and wider society working together. This co-operation includes working with our shareholders and maintaining their support.

Shell will play a leading role as the worlds energy systems change. We will continue to supply the oil and gas that people need today. As one of the worlds largest suppliers of liquefied natural gas (LNG), we can ship natural gas to where it is needed most. At the same time, we are accelerating the transition to low- and zero-carbon energy, which is at the heart of our strategy.

Essentially, an accelerated transition is the best way to ensure security of energy supplies. It is also the best way to help people in some parts of the world who do not yet have access to energy, which is essential for a better quality of life.

Towards net zeroWe firmly believe our climate targets are aligned with the more ambitious goal of the UN Paris Agreement on climate change: to limit the increase in the average global temperature to 1.5C above pre-industrial levels. The actions Shell takes over the coming years, and our progress against our short- and medium-term targets, will be crucial steps to ensure that we become a net-zero emissions energy business by 2050.

In the first year of our Powering Progress strategy, we have laid the foundations for success. We have taken critical investment decisions in the production of low-carbon fuels, solar and wind power, and hydrogen. We have made significant changes to our Upstream and refinery portfolios, we reshaped the organisation and we simplified the company and its share structure. We have formed partnerships with some of the worlds biggest companies in sectors from aviation to road transport and technology.

In 2021, we added an ambitious new target to halve absolute emissions from our operations and the energy we buy to run them by 2030 (Scope 1 and 2), compared with 2016 levels and on a net basis. We are well on our way with an 18% reduction by the end of 2021.

For comparison, we estimate that global energy- and fossil-related CO2 emissions actually rose by 2.4% in the period between the end of 2016 and the end of 2021, based on International Energy Agency (IEA) and other data.

Change in demandWe believe that for the world to decarbonise, a dramatic change in demand for energy is just as critical as changes to supply. That is why an essential part of Shells strategy is working with our customers across different sectors to reduce emissions.

We are helping our customers to identify and use low- and zero-carbon alternatives to the energy products they have used for many decades: renewable electricity and hydrogen to power homes, cars, trucks, businesses, and industry; biofuels for cars, trucks and planes; LNG for power, trucks and ships; and carbon capture and storage and nature-based carbon offsets to deal with any remaining emissions.

This is not only the right approach for the world. It also makes good business sense. We see great business opportunities for Shell in the fast-growing low- and zero-carbon markets where we are well positioned to provide the different products and solutions our customers need.

We are leading the way in new technologies that will help to decarbonise our operations, and to reduce emissions for our customers. Our scientists are developing new ways to store hydrogen safely, including underground, for example, which will be critical to ensure secure, large-scale supplies of hydrogen to our industrial customers in the future. And our engineers are designing LNG projects which are powered by renewable electricity.

RemunerationWe included progress in the energy transition in the calculation of the annual bonus for almost all Shells employees in 2021. Now we are going further. From 2022, we have extended how we measure progress to cover three key themes; reducing emissions from our operations, sales of low- and zero-carbon products and partnering with others to decarbonise road transport.

In 2019, we were the first major energy company to include an energy transition performance metric in our Long-term Incentive Plan for senior executives. This has vested for the first time at 180%, reflecting our progress in transforming Shells business for a lower-carbon future.

Stronger and more profitableLast year, 89% of Shells shareholders voted in favour of our energy transition strategy. We are implementing that strategy, and this year we are asking shareholders to vote on our progress, as we will do every year until 2050. The next energy transition strategy update for an advisory vote is in 2024 and we will give another update on our progress next year.

Securing shareholder support as we implement our Powering Progress strategy is good governance. The vote on our progress towards our targets and plans is purely advisory and will not be binding on our shareholders. The legal responsibility for Shells strategy lies with the Board and Executive Committee.

When I look at what we have achieved in 2021, and our plans for the years ahead, I believe that Shell will become stronger and more profitable by providing the low- and zero-carbon energy products and services that our customers need. That is good for our shareholders. It is good for our customers. It is also good for the worlds climate goals and the planet.

The continued support of our shareholders is critical for us to become a net-zero emissions energy business and a leader in the energy transition. We believe that Shells energy transition strategy is in the best interests of our shareholders as a whole and wider society.

The Board recommends that you vote in favour of Resolution 20 in support of the progress that Shell has made in its energy transition strategy over the past year as described in this report.

CHIEF EXECUTIVE OFFICERS INTRODUCTION

Ben van Beurden, CEO, Shell plc

In a time of great uncertainty, it is vital that our long-term energy transition strategy remains on track. This report shows the strong progress we have made towards our target to become a net-zero emissions energy business by 2050.

It will take bold moves for Shell to achieve net zero. In 2021, we took some significant steps. We completed one of the biggest restructurings in our history, making us a more agile company. We decided to simplify our share structure, and moved Shells headquarters from the Netherlands to the UK.

TargetsIn this Energy Transition Progress Report, we show our progress against our climate targets in the year since our shareholders overwhelmingly supported our energy transition strategy.

We are making significant progress in a long-term plan. Crucially, we set a new target to reduce absolute emissions from our operations by 50% by 2030, compared with 2016 on a net basis. By the end of 2021, we had achieved a reduction of 18%. We achieved our short-term target to reduce the net carbon intensity of the energy products we sell by 2-3% by the end of 2021, also compared with 2016.

Now our targets start to get more ambitious. We are working towards a 9-12% reduction in net carbon intensity by 2024, and a 20% reduction by 2030. To put our targets into context, the International Energy Agency Net Zero by 2050 scenario suggests that the transport sector, which accounts for most of Shell's emissions, needs to see a reduction in net carbon intensity of 18% by 2030.

From today, our target to achieve net-zero emissions by 2050 is no longer conditional on societys progress, marking a further step forwards. This reflects the leading role we will play in the energy transition. We must find ways to be ahead of society where we can, while remaining a successful and profitable company.

As we have seen from the recent report by the Intergovernmental Panel on Climate Change, the world needs to take urgent action to meet its climate goals. While countries, companies and individuals are making significant changes, there is still a risk that the world will not achieve net-zero emissions by the middle of the century. This could mean that Shell would find it hard to meet its 2050 target as well. We are rising to that challenge and will demonstrate over time how we will reach our goal.

Working sector by sectorWe are investing in low- and zero-carbon products such as renewable electricity, hydrogen, biofuels and chemicals. We are building a leading hydrogen business, and now operate 10% of total electrolyser capacity in the world. We are already one of the worlds largest producers of biofuels through our joint venture in Brazil. And last year we started building one of Europes biggest biofuels facilities.

Crucially, we are working sector by sector to identify the low- and zero-carbon products and services that our customers need. And we are laying the foundations for future expansion by building capacity and expertise. At the beginning of 2022, for example, with our joint-venture partners, we won bids to develop 5 gigawatts of floating wind power in the UK, enough to power 6 million homes. That is more than double the number of homes in Scotland.

Investing in net zeroOur Upstream business continues to provide the oil and gas the world needs today, and generates the returns to fund distributions to shareholders and our investments in the energy transition. Our production and sales of oil and gas will decrease in the coming years as we transform our business.

At the same time, our investments in the energy system of the future will increase significantly. By 2025, we expect around half of our total expenditure (cash capital expenditure and operating expenses) to be on low- and zero-carbon products and services including biofuels, hydrogen, power, charging for electric vehicles, carbon capture and storage, nature-based solutions, chemicals and lubricants. In 2022, we expect that around one third of our total expenditure will be on these low- and zero- carbon products and services.

Our planned investments in countries such as Germany, the Netherlands and the UK put us among the leading investors in the energy transition there. In the UK, for example, we plan to invest 20-25 billion ($26-33 billion) over the next ten years, mostly in low- and zero-carbon projects including offshore wind, hydrogen and charging for electric vehicles, subject to Board approval.

Shareholder engagementA central part of our Powering Progress strategy is delivering value for our shareholders. We have made good progress here too. In 2021, we produced a strong financial performance and announced an $8.5 billion share buyback programme in the first half of 2022.

We will continue our dialogue with shareholders as Shell transforms and evolves. It is important that we are transparent about our progress in the energy transition. From the first quarter of 2022, we intend to publish more information about the profitability of our Renewables and Energy Solutions business, something that investors have asked for.

We believe that our strategy delivers secure and reliable energy that will accelerate the energy transition and deliver strong profits and returns to shareholders. I ask our shareholders to vote for Resolution 20 in support of our progress towards our targets and milestones as we accelerate towards net zero.

CARBON PERFORMANCE AT A GLANCE

PROGRESS SUMMARY

We are transforming into a net-zero emissions energy business. In 2021 and the beginning of 2022 we:

Reduced our Scope 1 and 2 emissions from our operations by 18%, and reduced the net carbon intensity of the energy products we sell by 2.5%, both by the end of 2021 compared with 2016.

Formed more than 50 collaborations with other leading companies aiming to be at the forefront of the energy transition. Continued to build a material power business. We had 1.6 million retail customers worldwide by the end of February 2022, compared with 900,000 at the end of 2020. We have 4.7 gigawatts (GW) of renewable generation capacity in operation, under construction and/or committed for sale. We have a further 38 GW of renewable generation capacity in our pipeline of future projects.

Expanded our hydrogen business. We have started production from 30 megawatts (MW) of electrolysers that can produce around 4,300 tonnes a year of decarbonised hydrogen. We are looking to take final investment decisions on 10 times this capacity in 2022. We own and operate 10% of global electrolyser capacity today.

Took a final investment decision on a facility in the Netherlands to produce 820,000 tonnes of biofuels a year. This facility will be one of the largest in Europe to produce sustainable aviation fuel (SAF) and renewable diesel made from waste, and is expected to start production in 2024.

Continued to build the infrastructure that our customers will need as they move to low- and zero-carbon energy.

Expanded our electric vehicle charging network to almost 90,000 charge points at the end of 2021, from around 60,000 in 2020.

Increased the number of liquefied natural gas (LNG) refuelling sites in Europe and increased the number of sites for hydrogen refuelling in Europe, North America and China.

Announced our ambition for SAF to make up at least 10% of our aviation fuel sales by 2030.

Expanded our LNG bunkering operations, including the worlds first bio-LNG bunkering, to help to reduce emissions from the marine sector. We also worked with others on programmes to develop hydrogen fuel cell propulsion for ships.

Worked with customers across sectors such as commercial, light industry and technology to decarbonise their energy use by providing renewable electricity.

Developed partnerships in the heavy industry sector to explore how hydrogen and carbon capture and storage (CCS) can be used to reduce global carbon emissions.

Invested in CCS. We have two CCS projects in operation and more than 10 under development. Retired around 6 million tonnes of nature-based credits, excluding trading activities, in 2021.

Supported climate-related government policies that advance the goal of the Paris Agreement on climate change.

OUR PERFORMANCE

Read in more detail about our performance against our climate targets and how we are working to achieve net-zero emissions by 2050.

09 ABSOLUTE EMISSIONS11 NET CARBON INTENSITY

ABSOLUTE EMISSIONS

REDUCING OUR ABSOLUTE SCOPE 1 AND 2 EMISSIONSTo achieve net-zero emissions by 2050, we are transforming how we produce energy as we continue to meet growing demand.

In October 2021, we set a new target to halve the emissions from our operations (Scope 1), plus the energy we buy to run them (Scope 2), by 2030 compared with 2016 levels on a net basis.

We have identified six main ways to decarbonise our operations:

making portfolio changes such as acquisitions and investments in new, low-carbon projects. We are also divesting assets and reducing our production through the natural decline of existing oil and gas fields;

improving the energy efficiency of our operations;

See original here:

Notice of 2022 AGM and Shells Energy Transition Progress Report - Yahoo Finance