1. Before offsetting CO2 equivalent (CO2e) emissions1 , Shell2 advises that the Customer strives to first avoid, and second to reduce CO2e emissions, and to offset CO2e emissions only in those cases where the above-mentioned options are not feasible. This can be accomplished by using as little fuel as possible, for instance, through driving (partly) electric vehicles, improvement of energy efficiency of vehicles and improvement of driver behaviour. At this moment it might not be possible to completely avoid or reduce CO2e emissions. Therefore, Shell offers the possibility to offset the remaining CO2e emissions by purchasing carbon credits to balance the full lifecycle emissions of Shell Lubricants Carbon Neutral products.

2. The term “Carbon Neutral”, indicates that Shell has engaged in a transaction where an amount of carbon dioxide equivalent associated with the acquisition and pre-processing of raw materials, lubricants production, packaging, distribution, and the subsequent use and end of life treatment of the used materials in relation to the Shell Lubricants products, has been removed from the atmosphere through a nature based process, or emissions saved through avoided degradation of natural ecosystems.

3. The calculation of CO2e emissions is the result of multiplying the liters of Shell Lubricants Carbon Neutral products purchased by the Customer in the respective market, by the applicable emission factors.

4. Currently there are no standard emission factors or product category rules available to describe emissions throughout the full life cycle of Lubricants. As a result, Shell’s life cycle assessment (LCA) calculations are based on emission factors that are typically obtained from the following sources: Shell internal studies, external consultants, acknowledged life cycle inventory databases and public literature. National and international standards as well as industry best practices were followed in deriving the full life cycle emissions of Shell Lubricants in CO2e. The underlying model has been subjected to an independent critical review and the associated processes have been independently reviewed by an external, accredited verification body.

5. Shell offsets the CO2e emissions resulting from the full lifecycle of Shell Lubricants by using verified carbon credits. A carbon credit represents the avoidance or removal of 1 tonne of carbon dioxide. These credits are traded among governments and businesses. In order to ensure the quality and integrity of carbon credits, there is a robust programme of third-party standards, verification processes and registries.

6. Shell and its subsidiaries are not liable in any way for any loss, damages or expenses arising from the calculation of the carbon offsets.

7. Carbon credits can be counted only once; Shell makes no representations or warranties that carbon offsets offered will satisfy the requirements or expectations of any reporting standards that are in force at the 23rd of February 2021 such as the GHG Protocol or under ISO 14064. The carbon offsets may be used by Shell to calculate annual progress against its Net Carbon Footprint3 ambition. Shell retires the carbon credits associated with the total CO2e emissions from carbon neutral products generated during a calendar year annually, within 3 months after the end of the calendar year.

8. The calculations of CO2e emissions may be subject to change as a result of changes in the Shell Lubricants specifications, changes in emission factors, or otherwise.

1 CO2e (CO2 equivalent) emissions” means CO2, CH4, N2O emissions.
2 The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this document “Shell”, “Shell Group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this press release refer to entities over which Royal Dutch Shell plc either directly or indirectly has control.
3 Shell’s “Net Carbon Footprint”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. But, to support society in achieving the Paris Agreement goals, we aim to help such suppliers and consumers to likewise lower their emissions. The use of the term Shell’s “Net Carbon Footprint” is for convenience only and not intended to suggest these emissions are those of Shell or its subsidiaries.

ASSURANCE STATEMENTS

The associated processes have been independently reviewed by Lloyd’s Register, an external, accredited Verification Body. This includes the following processes:

  • Processes for calculation of the life cycle carbon dioxide emission associated with a product (documentation here),
  • Processes for screening of third-party Nature-Based Solutions (NBS) projects for generation of carbon credits (documentation here)
  • Processes for carbon credit procurement, reconciliation and retirement (documentation here)

In addition, an independent, accredited verification body has subjected the model, which is source of key parameters and methodologies for carbon intensity calculations on a product level, to a critical review against the international standard ISO 14040/44. For the purpose of this task a review panel was formed involving external independent industry experts.

CO2e CONVERSION ANALOGY DISCLAIMER:

These analogies are for illustrative purposes only. Shell does not make any representation or warranty, whether express or implied, regarding the accuracy, completeness, reliability or relevance of the analogies, and is not liable in any way for any loss, damages or expenses arising out of, or in connection with the calculation of the analogies, or with the use of or claims made regarding such analogies. Actual emissions from driving are sensitive to parameters that vary in each individual application, for which assumptions are required here: size or type of car; number of passengers; and city vs. highway driving, among others. As such, these numbers should not be taken as representative of any specific case or activity. Driving analogies are based on direct CO2, CH4 and N2O emissions from the vehicles and do not include emissions from fuel production and distribution (life cycle emissions). Fuel emissions factors are from UK DEFRA (2019), driving distances are from Google Maps (2020), and US and EU driver distances are from US DOT (2018) and EU ODYSSEE-MURE (2017).

OTHER DISCLAIMERS:

This document contains data and analysis from Shell’s Sky scenario.

Shell’s scenarios are not intended to be projections or forecasts of the future. Shell’s scenarios, including the scenarios contained in this report, are not Shell’s strategy or business plan. When developing Shell’s strategy, our scenarios are one of many variables that we consider. Ultimately, whether society meets its goals to decarbonise is not within Shell’s control. While we intend to travel this journey in step with society, only governments can create the framework for success. The Sky 1.5 scenario starts with data from Shell’s Sky scenario, but there are important updates. First, the outlook uses the most recent modelling for the impact and recovery from COVID-19 consistent with a Sky 1.5 scenario narrative. Second, it blends this projection into existing Sky (2018) energy system data by around 2030. Third, the extensive scale-up of nature-based solutions is brought into the core scenario, which benefits from extensive new modelling of that scale-up. (In 2018, nature-based solutions required to achieve 1.5°C above pre-industrial levels by the end of this century were analysed as a sensitivity to Sky. This analysis was also reviewed and included in the IPCC Special Report on Global Warming of 1.5°C (SR15).) Fourth, our new oil and natural gas supply modelling, with an outlook consistent with the Sky 1.5 narrative and demand, is presented for the first time. Fifth, the Sky 1.5 scenario draws on the latest historical data and estimates to 2020 from various sources, particularly the extensive International Energy Agency energy statistics. As with Sky, this scenario assumes that society achieves the 1.5°C stretch goal of the Paris Agreement. It is rooted in stretching but realistic development dynamics today but explores a goal-oriented way to achieve that ambition. We worked back in designing how this could occur, considering the realities of the situation today and taking into account realistic timescales for change. Of course, there is a range of possible paths in detail that society could take to achieve this goal. Although achieving the goal of the Paris Agreement and the future depicted in Sky 1.5 while maintaining a growing global economy will be extremely challenging, today it is still a technically possible path. However, we believe the window for success is quickly closing.

Additionally, it is important to note that as of 23rd February 2021, Shell’s operating plans and budgets do not reflect Shell’s Net-Zero Emissions target.  Shell’s target is that, in the future, its operating plans and budgets will change to reflect this movement towards Net-Zero Emissions . However, these plans and budgets need to be in step with the movement towards a Net-Zero Emissions economy within society and among Shell’s customers.  

Also, in this document we may refer to Shell’s “Net Carbon Footprint”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Footprint” is for convenience only and not intended to suggest these emissions are those of Shell or its subsidiaries.