• Shell’s total emissions remained broadly stable at about 1.1 billion metric tons of CO2 equivalent in 2025, driven largely by Scope 3 emissions from fuel sales.
• Net carbon intensity remained unchanged at 71 grams of CO2 equivalent per megajoule, the company’s central metric for tracking its energy transition strategy.
• The reporting highlights ongoing debate around intensity-based climate targets, which allow fossil fuel output and total emissions to rise while headline metrics fall.
Shell’s Emissions Remain Largely Unchanged
Shell reported that its greenhouse gas emissions remained broadly stable in 2025 at around 1.1 billion metric tons of CO2 equivalent, according to the company’s annual report published Thursday and Reuters calculations.
The figure reflects the scale of emissions linked to the company’s global energy operations and the combustion of fuels it sells. For comparison, the United Kingdom’s total greenhouse gas emissions stood at roughly 480 million metric tons of CO2 equivalent in 2024, less than half the footprint associated with Shell’s operations and products.
The data illustrates the continuing climate challenge posed by large oil and gas producers, whose reported emissions include both operational output and the downstream impact of energy consumption.
The majority of Shell’s emissions fall under Scope 3, which covers emissions generated by customers using the fuels a company sells. For energy majors, these emissions account for the largest share of their overall carbon footprint.
Scope 1 and Scope 2 emissions cover operational activities such as extraction, refining, and electricity use across company facilities. Scope 3 captures the combustion of oil, gas, and other fuels once they reach end users.
Because oil and gas companies operate primarily as energy suppliers, Scope 3 emissions often represent more than 80 percent of their reported climate impact.
The scale of these emissions is central to debates around the pace and credibility of the industry’s transition strategies, particularly as demand for hydrocarbons remains strong in many global markets.
Net Carbon Intensity Holds Steady
Shell said its Net Carbon Intensity (NCI), the primary metric it uses to track progress toward its energy transition goals, stood at 71 grams of CO2 equivalent per megajoule in 2025. The figure is unchanged from 2024 levels.
The company has set a target to reduce this measure to zero by 2050 as part of its long-term strategy to align its energy portfolio with global climate goals.
Net carbon intensity measures the emissions generated per unit of energy supplied, rather than total emissions. The approach reflects how companies blend fossil fuels with lower-carbon products such as renewable electricity, biofuels, or hydrogen in their overall energy mix.
For large integrated energy companies, intensity metrics provide a way to measure progress while maintaining supply levels across global markets.
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Intensity Targets Face Scrutiny
Intensity-based climate targets remain a subject of debate among policymakers, investors, and climate analysts.
Measuring emissions performance by intensity means a company can technically increase its fossil fuel output and overall emissions while using offsets or adding renewable energy or biofuels to its product mix to bring the headline figure down.
Critics argue that this approach can mask rising absolute emissions, particularly if global energy demand continues to grow. Supporters counter that intensity metrics better reflect the transition pathway for companies operating in markets where fossil fuels still dominate.
For multinational energy producers, balancing energy security, shareholder expectations, and decarbonization commitments remains a complex strategic equation.
Implications for Investors and Policymakers
Shell’s latest emissions data highlights the structural tension facing the global energy system. Oil and gas companies remain central to current energy supply while simultaneously being pressured to accelerate decarbonization.
For investors, the stability of Shell’s emissions profile suggests the company’s transition strategy remains focused on gradual portfolio shifts rather than rapid reductions in fossil fuel output.
For policymakers, the figures reinforce the importance of regulatory frameworks that address both intensity and absolute emissions if global climate targets are to remain achievable.
As governments expand climate disclosure requirements and investors sharpen scrutiny of corporate transition plans, emissions reporting from major energy producers will remain a critical signal for markets assessing the pace of the global energy transition.
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