NEW YORK, New York – Shell plc (LON/NYSE: SHELL) today updated investors on its strategy to create more value with fewer emissions and enhance shareholder returns through a balanced energy transition. “We are investing to provide customers with the reliable energy they need today and in the future, and to transform Shell to win in a low-carbon future. Efficiency, discipline and simplification will be our guiding principles as we allocate capital to improve shareholder value while driving the energy transition,” said Wael Sawan, Shell’s Chief Executive Officer. Today’s update reflects Shell’s balanced approach to delivering on its Driving Progress strategy. More value An increased focus on performance and stronger capital and cost discipline will help to increase shareholder returns to 30-40% of CFFO over the cycle, up from 20-30% previously, through a combination of dividends and share buybacks. Shell will raise its dividend per share by an expected 15% starting with the second quarter 2023 interim dividend to be paid in September and will commence a share buyback of at least $5 billion in the second half of 2023, subject to Board approval. Shell will continue to invest in securing a reliable supply of energy while actively working to reduce its carbon footprint. Today, Shell also confirms that it will continue to:

• Develop a leading integrated gas business and maintain its leadership in the global liquefied natural gas (LNG) market.
• Strengthen its position in the upstream segment to achieve long-term cash flow stability by stabilizing liquid hydrocarbon production by 2030.
• Leverage its brand, customer relationships and trading strengths to optimize the value of investments made in downstream, renewables and energy solutions, while helping customers in the transportation and industrial sectors to decarbonize.

Shell plans to:

• Enhance the efficiency of its marketing business while strengthening its leading position in low-carbon fuels and electric vehicle chargers.
• Invest disciplined in hydrogen and carbon capture and storage (CCS) to create opportunities for the future.
• Repurpose its energy and chemical parks to offer customers lower-carbon solutions, while conducting a strategic review of the energy and chemical park assets in Bukom and Jurong in Singapore, and further increasing its presence in Europe.

• Selectively invest in energy, focusing on markets where its trading activities and customer reach can drive profitability, and leveraging access to green electrons to drive growth in low-carbon energy solutions.

Lower emissions Shell is making good progress towards its goal of becoming a zero-emissions energy business by 2050 by reducing emissions from its operations and from the fuels and other energy products it sells to its customers.

Shell will continue to make progress:

• Aiming to achieve near-zero methane emissions by 2030 and eliminate routine gas flaring by 2025, ahead of the World Bank’s Zero Routine Flaring by 2030 initiative.
• The plan is to invest $10-15 billion over 2023-2025 to support the development of low-carbon energy solutions, including biofuels, hydrogen, electric vehicle charging, and carbon storage.

“We need to continue to create profitable business models that can be scaled up quickly to make a real impact on the decarbonization of the global energy system. We will invest in the models that work – the ones that generate the highest returns and play to our strengths,” Wael Sawan.