OWP 2022: Leading For the Future

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KEYNOTE

“WE HAVE GROWN ALONG WITH THE COUNTRY; WE HAVE BEEN PART OF SINGAPORE’S ECONOMIC DEVELOPMENT FOR MORE THAN 130 YEARS AND EMPLOY AROUND 3,000 PEOPLE. FOR US TO GO THROUGH CHANGE IS MASSIVE BECAUSE WE NOT ONLY HAVE TO RETHINK HOWWE ARE SET UP, WE HAVE TO FINDWAYS TO TRANSFORM A LARGE PART OF THE ENERGY ECOSYSTEM WE ARE PART OF.”

part of to ensure that we hear and address their concerns as we transition to a cleaner future. The fourth pillar is achieving net-zero emissions, which is, as far as I am concerned, our most important priority,” explained Kah Peng. Getting to net zero involves new business models and areas of operation. This has seen Shell cut its crude capacity in Singapore by half in 2021. Instead, it will look to build low-carbon businesses of significant scale over the next decade, with a focus on increasingly offering low carbon circular, and bio products and solutions, such as biofuels, charging for electric vehicles, and renewable power.

SHELL’S POWERING PROGRESS STRATEGY Launched in February 2021, Shell’s “Powering Progress” strategy sets out how Shell will accelerate the transition of its business to net-zero emissions to meet the challenge of climate change. This strategy is aligned with the more ambitious goal of the Paris Agreement – to limit the increase in the average global temperature to 1.5 degrees Celsius above pre industrial levels. “Shell’s energy transition strategy is focused on four pillars. The first pillar is generating shareholder value; this is what we do to continue to deliver on the shareholder returns we have promised. The second part of it is what we call respecting nature, which involves how we are considering our impact on the environment. Our third pillar is powering lives; how we contribute to the communities we are

Shell’s net-zero target includes not only the Scope 1 emissions, which are directly from its operations, and Scope 2, from the energy purchased to run its operations, but also the emissions from the use of energy products it sells (Scope 3). “The vast majority of our emissions (over 80%) comes from Scope 3 – the emissions that come from our customers when they use our products,” said Kah Peng.

Therefore, to meet its emissions targets, Shell needs to work with its customers to reduce their emissions too. This involves changing from a product focus to a sector focus as it looks to accelerate the transition of the entire energy system.

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