Their production and processing produce emissions, and we include these within our target to achieve net-zero emissions Scope 1 and 2 from our operations by We also have short- medium- and long-term targets to reduce our carbon intensity, measured by our Net Carbon Footprint methodology.
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We believe these targets are aligned with the 1. In Comparong absence of a broadly accepted standard, we developed our own approach to demonstrate Paris alignment by setting carbon intensity targets using a pathway derived from the IPCC scenarios aligned with the Paris goal. Overshoot refers to the extent to which a scenario exceeds an emissions budget and subsequently relies on sinks to compensate for the excess emissions. We then take the following steps: Comparing Marxs Wage Labour And Capital.
The total energy in each of the scenarios is calculated at the point of delivered energy energy that is processed by refining or liquefaction, for example, but before it is used for electricity generation using a fossil fuel equivalence approach for electricity. This more accurately reflects the energy delivered by an energy supplier like Shell to the market. The total net emissions of each scenario are calculated taking into account emissions stored using carbon capture Labouf storage and offset using natural sinks.
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The carbon intensity for each scenario is calculated by dividing the net emissions by the total delivered energy. The range of carbon intensities of the scenarios allows for the construction of a benchmark range after removing any outliers. By using the benchmark range produced by this approach to set our targets, we aligned them with the necessary reduction in carbon intensity shown in the 1. The upper and lower lines represent the upper and Comparing Marxs Wage Labour And Capital boundaries of the benchmark range derived from the IPCC scenarios. Untilour calculation of the total net emissions of each scenario includes only the expected mitigation actions by Shell such as carbon capture and storage and Conparing using natural sinks, including any use of offsets included in the carbon-neutral energy products we offer our customers. After that date, we also include mitigation actions taken separately by our customers. Today, we do not include any mitigation steps taken separately by our customers.
That is because the accounting standards to include those actions do not exist. Under existing protocols, energy suppliers report the Scope 3 emissions from the use of their products, which Wahe equivalent to the Scope 1 emissions reported by the users of those products.
However, when users of energy mitigate their Scope 1 emissions by use of carbon capture and storage or offsets, there is no accounting protocol for reflecting the corresponding reduction in the Scope 3 emissions reporting by the energy supplier. To account for reductions in emissions across full energy value chains it is necessary to build on the existing greenhouse gas reporting and accounting protocols to include mitigation actions by both energy suppliers and users. Shell is in discussions with standard-setting bodies such as Greenhouse Gas Protocol, the World Resources Institute and CDP to develop the accounting protocols Officer Observation frameworks to include mitigation actions by energy suppliers and energy users.
Reporting and accounting for mitigations in this way Comparing Marxs Wage Labour And Capital also need new systems for the exchange of data between suppliers and users of energy.
We expect these developments will take three to five years. Our carbon intensity targets for and reflect this expected change in accounting approach. This progress will depend on whether governments and businesses, including Shell, provide the right conditions and incentives for low- and zero-carbon choices, and on whether consumers embrace Comparing Marxs Wage Labour And Capital changes.
We must work towards Capihal long-term target of net-zero emissions immediately. That is why we have set a series of short-term targets that are reflected in the remuneration of 16, employees. These short-term targets are not conditional on whether society progresses towards the goal of net-zero emissions; and while extremely challenging, they are aligned with our current operating plans. If we moved too far ahead of society, it is likely that we would be making products that our customers are unable or unwilling to buy.
That is why we wish to work together with customers, governments and across sectors to accelerate the transition to net-zero emissions. Shell cannot get to net zero Wagr society also being net zero.]
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