Shell reported greenhouse gas emissions of approximately 1.1 billion tonnes of carbon dioxide equivalent in 2025, according to its latest annual report and external analysis of the company’s disclosures. The figure remained broadly unchanged compared with the previous year, reflecting the scale of emissions linked to the company’s global energy operations and the use of fuels it supplies to customers.

To illustrate the scale, the reported emissions associated with Shell’s activities and energy products are more than double the United Kingdom’s national greenhouse gas emissions, which totaled roughly 480 million tonnes of CO2 equivalent in 2024.

Scope 3 Emissions Dominate Energy Sector Footprints

The majority of Shell’s emissions fall into the category known as Scope 3 emissions. These represent the emissions generated when customers use the oil, gas and other fuels that the company sells.

For energy producers, Scope 3 emissions typically account for the largest share of the overall carbon footprint, often exceeding 80 percent of total reported emissions. By contrast, Scope 1 emissions arise directly from operational activities such as extraction and refining, while Scope 2 emissions reflect electricity consumption at company facilities.

Because the business model of oil and gas companies involves supplying fuels that are ultimately burned by end users, downstream consumption remains the primary driver of emissions associated with their operations.

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Net Carbon Intensity Metric Remains Unchanged

Shell reported that its Net Carbon Intensity stood at 71 grams of CO2 equivalent per megajoule in 2025. This metric, which measures the emissions generated per unit of energy supplied, remained unchanged compared with 2024.

The company uses Net Carbon Intensity as its central indicator for tracking progress toward its long-term energy transition strategy. Shell has set a target to reduce this measure to net zero by 2050.

Unlike total emissions metrics, carbon intensity measures emissions relative to the amount of energy delivered. The approach allows companies to incorporate lower-carbon energy sources such as renewable electricity, biofuels or hydrogen into their portfolios while continuing to supply fossil fuels to meet global energy demand.

Debate Over Intensity-Based Climate Targets

The use of intensity-based climate targets continues to generate debate among investors, policymakers and climate analysts.

Because the metric measures emissions per unit of energy rather than total emissions, a company could increase overall production and total emissions while maintaining or reducing the reported intensity of its energy mix. Critics argue that this can obscure rising absolute emissions if fossil fuel production continues to grow.

Supporters of intensity-based metrics contend that they provide a more practical measure for energy companies operating in markets where demand for oil and gas remains strong and where the transition toward lower-carbon energy systems is expected to take decades.

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Strategic Implications for Energy Companies

Shell’s reported emissions levels highlight the structural challenges facing major oil and gas companies as they balance continued global energy demand with pressure to accelerate decarbonization.

Large energy producers remain central suppliers of global energy, particularly in sectors where alternatives remain limited. At the same time, investors and regulators are increasingly scrutinizing corporate transition plans and emissions disclosures.

As climate reporting standards evolve and governments strengthen disclosure requirements, emissions data from major energy companies will continue to play an important role in shaping investor expectations and policy discussions around the pace of the global energy transition.

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