The company aims to reduce the footprint of its energy products by around half by 2050, and by around 20 per cent by 2035, in order to adhere to Paris Agreement goals.

The decision was announced after pressure from institutional investors, who said urgency was needed to fight climate change and protect the value of their holdings.

Shell will set the target each year, for the following three- or five-year period. The target-setting process will start from 2020 and will run to 2050.

It plans to link these targets and other measures to its executive remuneration policy. The revised policy will be put to shareholders for approval at the company’s Annual General Meeting in 2020 and could see the Shell’s top brass losing pay if they fail to meet the targets.

CEO Ben van Beurden says the targets were the result of “unprecedented collaboration” with investors and will help to ensure the company thrives as countries around the world cut emissions to comply with the 2015 Paris Agreement on climate change.

He said: “We are taking important steps towards turning our net carbon footprint ambition into reality by setting shorter-term targets.

“This ambition positions the company well for the future.”

Van Beurden has long said Shell, which has its headquarters in the Netherlands, was planning for the day when demand for oil starts fading and major economies embrace alternative energy sources such as electricity, wind and nuclear power.

Investors, including the Church of England, said short-term goals were needed to accelerate progress.

Under the 2015 Paris agreement, governments around the world pledged to prevent global temperatures from rising by more than 1.5 degrees Celsius above pre-industrial levels.

Negotiators from nearly 200 nations are meeting in Katowice, Poland, this week and next to work out exactly how they are going to achieve that goal.

Yesterday broadcaster Sir David Attenborough warned attendees at the conference about the devastating impact of climate change and urged world leaders to do more to fight it. 

“As governments meet at the United Nations climate negotiations in Poland, I am delighted to see a unique announcement on climate change between investors and one of the largest companies in the world – Royal Dutch Shell,” Archbishop of Canterbury Justin Welby said.

“This sets Shell on a path to reducing the net carbon footprint of its energy products.”

The company aims to reduce the footprint of its energy products by around half by 2050, and by around 20 per cent by 2035, in order to adhere to Paris Agreement goals.

The decision was announced after pressure from institutional investors, who said urgency was needed to fight climate change and protect the value of their holdings.

Shell will set the target each year, for the following three- or five-year period. The target-setting process will start from 2020 and will run to 2050.

It plans to link these targets and other measures to its executive remuneration policy. The revised policy will be put to shareholders for approval at the company’s Annual General Meeting in 2020 and could see the Shell’s top brass losing pay if they fail to meet the targets.

CEO Ben van Beurden says the targets were the result of “unprecedented collaboration” with investors and will help to ensure the company thrives as countries around the world cut emissions to comply with the 2015 Paris Agreement on climate change.

He said: “We are taking important steps towards turning our net carbon footprint ambition into reality by setting shorter-term targets.

“This ambition positions the company well for the future.”

Van Beurden has long said Shell, which has its headquarters in the Netherlands, was planning for the day when demand for oil starts fading and major economies embrace alternative energy sources such as electricity, wind and nuclear power.

Investors, including the Church of England, said short-term goals were needed to accelerate progress.

Under the 2015 Paris agreement, governments around the world pledged to prevent global temperatures from rising by more than 1.5 degrees Celsius above pre-industrial levels.

Negotiators from nearly 200 nations are meeting in Katowice, Poland, this week and next to work out exactly how they are going to achieve that goal.

Yesterday broadcaster Sir David Attenborough warned attendees at the conference about the devastating impact of climate change and urged world leaders to do more to fight it. 

“As governments meet at the United Nations climate negotiations in Poland, I am delighted to see a unique announcement on climate change between investors and one of the largest companies in the world – Royal Dutch Shell,” Archbishop of Canterbury Justin Welby said.

“This sets Shell on a path to reducing the net carbon footprint of its energy products.”