Delivering CO鈧� compensation鹿 solutions to our customers
A comprehensive decarbonisation plan includes solutions to help you and your business avoid and reduce carbon emissions wherever possible. When avoidance and reduction is not feasible, Shell鈥檚 CO2 compensation1 program can assist in mitigating unavoidable emissions through use of high-quality carbon credits2.
In Shell Lubricants, we help customers meet CO2e3 emissions goals by providing premium products and cutting-edge technology to maximize performance and processes, including through provision of more sustainable products. These help deliver increased fuel economy, energy efficiency, and thermal management.
We are actively working on avoiding and reducing our emissions across our value chain. These include reducing our Scope 1 & 2 Emissions, increasing use of more circular and renewable content in our products, working on sustainable packaging solutions and waste management solutions. Read more here
Lubricant products with carbon credits
To complement the existing initiatives, Shell launched a range of lubricants with carbon credits1 in 2020 across our portfolio of premium oils in selected markets and across sectors including consumer and commercial automotive and industrial.
Shell鈥檚 globally diverse, externally verified, and high-quality, natural, and environmental solutions (NES)-based carbon credits compensate for CO2e emissions from across the lifecycle of the products including the raw materials, production, packaging, logistics, customer use and product end of life. Each carbon credit represents the avoidance or removal of greenhouse gases equivalent to one tonne of CO2e. As of 2024, more than 800 million litres of lubricant with carbon credits have been sold, equating to over two million tonnes of CO2e compensated through Shell鈥檚 portfolio of global carbon credits projects.
Shell also offers customised CO2 compensation1 solutions for our customers.
Independent external assurance
To support our CO2 compensated1 product offerings, Lloyd鈥檚 Register Quality Assurance (LRQA), an independent, accredited Verification Body, has provided external assurance on the associated processes and underlying product level carbon footprint calculations.
This includes the following:
- Processes for calculation of the life cycle greenhouse gas emissions in carbon dioxide equivalents associated with a product. Download Shell鈥檚 LRQA Document here (PDF, 133 kB).
In addition, LRQA independently has assured Shell Lubricants鈥� product level carbon footprint calculations, used for quantification of carbon intensity in kg CO2 equivalent per litre of product, against the following standards:
- International standard of ISO 14067:2018 Greenhouse gases - Carbon footprint of products - Requirements and guidelines for quantification
- Publicly available specification of PAS2050:2011 Specification for the assessment of the life cycle greenhouse gas emissions of goods and services.
LRQA implements and maintains a comprehensive management system that meets accreditation requirements for ISO 14065 Greenhouse gases 鈥� Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition and ISO/IEC 17021 Conformity assessment 鈥� Requirements for bodies providing audit and certification of management systems that are at least as demanding as the requirements of the International Standard on Quality Control 1 and comply with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants.
The associated documentation (assurance statement) has been reproduced in full and can be found here (PDF, 109 kB).
Legal disclaimers:
- The term 鈥淐翱2 compensated鈥� or 鈥減roducts with carbon credits鈥� does not imply that the product is a substitute for switching to lower-emission energy solutions or reducing fossil fuel usage. Although carbon credits aim to compensate for the product鈥檚 lifecycle CO2e emissions, CO2e emissions will be emitted to atmosphere. Although these carbon credits have been generated in accordance with international carbon standards, the compensation may not be exact. Shell businesses encourage their customers to focus first on emissions that can be avoided or reduced and only then, compensate the remaining emissions through the purchase and retirement of carbon credits in a voluntary carbon market.
- 鈥淐翱2 compensated鈥� or 鈥減roduct with carbon credits鈥� indicates that Shell will engage in a transaction where an amount of CO2 equivalent to the value of the remaining CO2e emissions from the product鈥檚 lifecycle, that includes emissions from raw material extraction, transport, production, and distribution, as well as from usage and end-of-life (for example, in the case of lubricants or other non-energy products) is intended to be achieved through the purchase and retirement of carbon credits.
- CO2e (CO2 equivalent) refers to CO2, CH4, N2O.