v3.25.2
Climate change and energy transition (Tables)
12 Months Ended
Dec. 31, 2024
Climate Change and Energy Transition [Abstract]  
Summary of carrying value of assets by segment
2024
$ billion
GoodwillOther intangible assetsProperty, plant and equipmentJoint ventures and associatesTotal
Integrated Gas4.92.660.06.473.9
Upstream5.30.163.48.076.8
Chemicals and Products0.31.032.64.037.9
Marketing4.34.621.43.934.2
Renewables and Energy Solutions1.21.25.71.09.1
Corporate2.10.12.2
Total16.09.5185.223.4234.1
4. Climate change and energy transition continued

2023
$ billion
GoodwillOther intangible assetsProperty, plant and equipmentJoint ventures and associatesTotal
Integrated Gas4.93.257.76.171.9
Upstream5.40.370.97.684.2
Chemicals and Products [A]0.30.935.54.040.7
Marketing [A]4.44.423.64.737.1
Renewables and Energy Solutions1.71.54.82.010.0
Corporate2.30.12.4
Total16.710.3194.824.5246.3
[A]Following resegmentation in 2024 (see Note 7), prior period comparatives have been revised to conform with current year presentation with an offsetting impact between Marketing and Chemicals & Products segments.
Information by segment on a current cost of supplies basis is as follows:
2024
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporateTotal
Revenue:
Third-party37,2906,606120,08990,91829,36643284,312

Inter-segment8,71539,9394,93838,3814,97196,944
Share of profit/(loss) of joint ventures and associates (CCS basis)1,9311,1896648(807)2,967
Interest and other income, of which:48609(432)1212421,1361,724
Interest income81817922,2642,372
Net (losses)/gains on sale and revaluation of non-current assets and businesses
(100)89(399)6119(3)(288)
Other140502(34)36121(1,125)(360)
Third-party and inter-segment purchases (CCS basis)24,0557,368107,210114,97231,074(3)284,676
Operating expenses, of which:
4,4429,79010,6818,3922,91569736,917
Production and manufacturing expenses4,1539,3511,3226,6051,9341423,379
Selling, distribution and administrative expenses1641769,1501,63688742612,439
Research and development expenses125263209151942571,099
Exploration expenses4141,9972,411
Depreciation, depletion and amortisation charge, of which:
6,15011,2233,8664,7009072626,872
Impairment losses5643271,6331,31965814,502
[A]
Impairment reversals(9)(75)(1)(114)(134)(333)
[B]
Interest expense189806567063,6604,787
Taxation charge/(credit) (CCS basis)3,1449,38789417799(209)13,492
CCS earnings9,5907,7721,8941,757(1,229)(2,992)16,792
[A]Impairment losses comprise Property, plant and equipment ($3,673 million), Goodwill ($510 million) and Other intangible assets ($319 million). (See Note 13).
[B]Impairment reversals comprise Property, plant and equipment ($333 million). (See Note 13).
7. Segment information continued

2023
$ million
Integrated GasUpstream
Marketing [A]
Chemicals and Products [A]
Renewables and Energy SolutionsCorporateTotal
Revenue:
Third-party37,6456,475130,55997,08044,81942316,620

Inter-segment11,56041,2305,29942,8164,707105,612
[A]
Share of profit/(loss) of joint ventures and associates (CCS basis)
1,951768561577(96)(3)3,758
Interest and other income, of which:1376717364751,8182,838
Interest income627957122,2022,313
Net gains/(losses) on sale and revaluation of non-current assets and businesses
(22)2091(46)1105257
Other1534356353(47)(389)268
Third-party and inter-segment purchases (CCS basis)27,3567,890118,912123,33740,17015317,680
[A]
Operating expenses, of which: [B]
4,8099,83011,1429,5983,76381839,960
Production and manufacturing expenses4,5299,1861,4637,3942,6105825,240
Selling, distribution and administrative expenses [B]
1543269,4272,0221,05844613,433
Research and development expenses [B]
126318252182953141,287
Exploration expenses2161,5341,750
Depreciation, depletion and amortisation charge, of which:8,90312,4632,4776,2691,1591931,290
Impairment losses3,4721,3604302,7779088,947
[C]
Impairment reversals(324)(206)(1)(90)(141)(762)
[D]
Interest expense146507536143,9024,673
Taxation charge/(credit) (CCS basis) [B]
2,8068,380851(210)1,3204713,194
CCS earnings [B]
7,0578,5403,0571,4823,089(2,944)20,281
[A]From January 1, 2024, Wholesale Commercial Fuels has been reallocated from the Chemicals and Products segment to the Marketing segment. Comparatives for the year 2023 have been reclassified accordingly for each of the above financial parameters to conform with current period presentation. The net impact on CCS earnings is $104 million.
[B]From January 1, 2024, costs for Shell's centrally managed longer-term innovation portfolio are reported as part of the Corporate segment. Comparatives for Corporate for the year 2023 have been reclassified accordingly to conform with current period presentation. The net impact on CCS earnings is $133 million with offsetting impact in all other segments.
[C]Impairment losses comprise Property, plant and equipment ($8,182 million), Goodwill ($635 million) and Other intangible assets ($130 million). (See Note 13).
[D]Impairment reversals comprise Property, plant and equipment ($627 million) and Other intangible assets ($135 million). (See Note 13).
7. Segment information continued

2022
$ million
Integrated GasUpstream
Marketing [A]
Chemicals and Products [A]
Renewables and Energy SolutionsCorporateTotal
Revenue:
Third-party54,7518,352149,439115,54153,19041381,314

Inter-segment18,41252,2856,19548,9996,791132,682[A]
Share of profit/(loss) of joint ventures and associates (CCS basis)
1,2192,111249362(7)(4)3,930
Interest and other income, of which:(714)726(82)22257706915
Interest income432224(2)9591,046
Net gains/(losses) on sale and revaluation of non-current assets and businesses
101437(169)2658642
Other(858)[C]26787(67)51(253)(773)
Third-party and inter-segment purchases (CCS basis)37,78510,666140,368147,06957,024(28)392,884
[A]
Operating expenses, of which: [B]
5,22610,32110,1499,5643,54766939,476
Production and manufacturing expenses4,9079,6761,2937,1002,5202225,518
Selling, distribution and administrative expenses [B]
2073278,6312,30397244312,883
Research and development expenses [B]
112318225161552041,075
Exploration expenses2401,4721,712
Depreciation, depletion and amortisation charge, of which:2,21110,3342,0273,1627771818,529
Impairment losses1159504793574122,313
[D]
Impairment reversals(3,449)(2,504)(151)(73)(6,177)
[E]
Interest expense84345472122,6823,181
Taxation charge/(credit) (CCS basis) [B]
5,90114,078918928(292)(36)21,497
CCS earnings [B]
22,22116,2582,2924,380(1,027)(2,562)41,562
[A]From January 1, 2024, Wholesale Commercial Fuels has been reallocated from the Chemicals and Products segment to the Marketing segment. Comparatives for the year 2023 have been reclassified accordingly for each of the above financial parameters to conform with current period presentation. The net impact on CCS earnings is $158 million.
[B]From January 1, 2024, costs for Shell's centrally managed longer-term innovation portfolio are reported as part of the Corporate segment. Comparatives for Corporate for the year 2023 have been reclassified accordingly to conform with current period presentation. The net impact on CCS earnings is $101 million with offsetting impact in all other segments.
[C]Includes the full write-down of the Nord Stream 2 loan amounting to $1,126 million as a result of the withdrawal from Russian oil and gas activities.
[D]Impairment losses comprise Property, plant and equipment ($1,799 million), Goodwill ($361 million) and Other intangible assets ($153 million). (See Note 13).
[E]Impairment reversals fully comprise Property, plant and equipment. (See Note 13).
Cash capital expenditure
Cash capital expenditure is a measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance.
2024
$ million
Integrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Total [A]
Capital expenditure
4,0957,7392,3572,9432,33812919,601
Investments in joint ventures and associates
6721508834713891,404
Investments in equity securities
173680
Cash capital expenditure
4,7677,8902,4453,2902,54914421,085
[A]See Consolidated Statement of Cash Flows.
7. Segment information continued

2023
$ million
Integrated GasUpstream
Marketing [A]
Chemicals and Products [A]
Renewables and Energy SolutionsCorporate
Total [B]
Capital expenditure
3,4918,2495,7412,9282,31427022,993
Investments in joint ventures and associates
70594498426191,202
Investments in equity securities
210689197
Cash capital expenditure
4,1968,3435,7903,0142,68136824,392
[A]Revised to conform with reporting segment changes applicable from 2024.
[B]See Consolidated Statement of Cash Flows.
2022
$ million
Integrated GasUpstream
Marketing [A]
Chemicals and Products [A]
Renewables and Energy SolutionsCorporate
Total [B]
Capital expenditure
3,4338,0204,6743,6882,61017522,600
Investments in joint ventures and associates
832123304270391,973
Investments in equity securities
1156103260
Cash capital expenditure
4,2658,1434,9783,6913,46928724,833
[A]Revised to conform with reporting segment changes applicable from 2024.
[B]See Consolidated Statement of Cash Flows.
Summary of PPE
Carrying amount of Integrated Gas and Upstream assets
$ billion
201620172018201920202021202220232024
Integrated Gas959491937975757274
Upstream13612812311910691888477
Total at December 31231222214212185166163156151
4. Climate change and energy transition continued

Carrying amount of production assets
$ billion
20162017201820192020202120222023
2024
At December 3116915414914112511211110596
Right of use assets976666
Total at December 31169154149150132118117111102
Carrying amount of exploration and evaluation assets
$ billion
20162017201820192020202120222023
2024
At December 311919181597654
Carrying amount of Chemicals and Production assets
$ billion
201620172018201920202021202220232024
Chemicals151618222527282524
Refineries1014141486666
Other1769999108
Total at December 31263738454242434138
Carrying amount of Marketing assets
$ billion
20172018201920202021202220232024
At December 311716222427303734
Carrying amount of Renewables and Energy Solutions assets
$ billion
20172018201920202021
2022
2023
2024
At December 31113359109
Climate change and energy transition summary of mid-price
RT24 $/b
202520302035204020452050
Shell mid-price697070707070
Average prices from four 1.5-2°C external climate change scenarios825041394848
IEA NZE50724337312826
NGFS GCAM NZE 20507779828594114
IEA APS817369646259
Sensitivity analysis climate change and energy transition
Sensitivity + 10% to the mid-price outlook
$ billion
Carrying valueSensitivity
Dec 31, 2024Dec 31, 202320242023
Integrated Gas74722424
Upstream778411
Total1511562525
Sensitivity averaged from three 1.5-2°C external climate change scenarios
$ billion
Carrying valueSensitivity
Dec 31, 2024Dec 31, 202320242023
Integrated Gas7472(11)(15)(12)(16)
Upstream7784(1)(3)(3)(5)
Total151156(12)(18)(15)(21)
Sensitivity IEA NZE50
$ billion
Carrying valueSensitivity
Dec 31, 2024Dec 31, 202320242023
Integrated Gas7472(21)(27)(15)(20)
Upstream7784(5)(7)(3)(5)
Total151156(26)(34)(18)(25)
Sensitivity - 10% to the mid-price outlook
$ billion
Carrying valueSensitivity
Dec 31, 2024Dec 31, 202320242023
Integrated Gas7472(4)(6)(4)(6)
Upstream7784(1)(3)(1)(2)
Total151156(5)(9)(5)(8)
Sensitivity Hybrid Shell Plan + IEA NZE50

$ billion
Carrying valueSensitivity
Dec 31, 2024Dec 31, 202320242023
Integrated Gas7472(7)(10)(8)(10)
Upstream7784(1)(1)(3)
Total151156(7)(11)(9)(13)
Sensitivity IEA NZE 2050 carbon price scenario
$ billion
Carrying valueSensitivity
Dec 31, 2024Dec 31, 202320242023
Integrated Gas7472(1)(2)(2)(4)
Upstream7784(1)(1)
Chemicals and Products3844(1)(2)(3)(4)
Total189200(2)(5)(5)(9)
Summary of information about carbon prices
For the key regions and countries the following carbon prices per tonne (RT24) have been assumed in the Operating Plan:
Operating plan periodSubsequent period
Region
2025-2034
2035-2050
European Union [A]
$92-$133
$136-$185
Norway
$181-$230
$230-$230
United Kingdom
$62-$133
$136-$185
Canada (Federal)
$69-$115
$115-$125
United States of America (Federal)
$0-$25
$31-$125
Australia
$32-$76
$80-$150
All other countries
$0-$65
$13-$150
[A]Except for the Netherlands where the ranges are $94-163 per tonne (2025-2034) and $164-185 per tonne (2035-2050).
RT24 $/tonne
202520302035204020452050
Shell mid-price92120136153169185
IEA NZE5086143184209232255