Energy giant Shell reported around 1.1 billion metric tons of carbon dioxide equivalent (CO₂e) emissions in 2025. Most of these emissions come from the use of the fuels the company sells, known as Scope 3 emissions.

Scope 3 emissions occur when customers burn oil, gas, and other fuels produced by energy companies. For Shell, these emissions dominate its carbon footprint.

The company’s operational emissions are much smaller. Shell recently reported about 50 million tons of Scope 1 emissions from its operations. It also noted around 8 million tons of Scope 2 emissions from purchased electricity.

Together, these numbers show the scale of emissions linked to global fossil fuel use. In comparison, the United Kingdom’s total emissions were about 480 million tons in 2024, less than half of Shell’s overall carbon footprint. This comparison highlights how emissions linked to energy supply chains can exceed those of entire countries.

Why Scope 3 Emissions Dominate Oil and Gas

Most emissions linked to oil and gas companies come from the fuels consumers burn. This explains why Scope 3 emissions are the largest part of Shell’s carbon footprint.

• Shell’s reporting shows Scope 3 emissions of over 1 billion tons of CO₂ equivalent, far higher than emissions from its direct operations. As seen below, the oil major’s GHG emissions have been declining since 2018.

Scope 1 and Scope 2 emissions come from Shell’s operations and purchased energy, based on the company’s sustainability reports. Scope 3 emissions represent the use of fuels sold by Shell. Scope 3 accounts for the vast majority, around 95% of the company’s carbon footprint.

About 78% of these emissions occur downstream, mainly when customers use gasoline, diesel, or natural gas. The rest come from upstream activities such as equipment manufacturing and fuel transport.

This pattern is common across the oil and gas industry. Energy companies produce fuels, but most emissions occur when the fuels are burned.

Because of this structure, reducing emissions in the energy sector requires changes across the whole system. These include cleaner fuels, new technologies, and changes in how energy is used.

Shell’s Net-Zero Targets and Climate Strategy

Shell says it aims to become a net-zero emissions energy company by 2050. To move toward this goal, the company has set several climate targets.

• One key target is to cut emissions from its operations (Scope 1 and 2) by 50% by 2030 compared with 2016 levels.

The oil giant has already made some progress on this goal. By 2024, the company had reduced operational emissions by about 30% compared with 2016.

Another metric Shell uses is Net Carbon Intensity (NCI). This measures emissions per unit of energy sold. In recent reporting, Shell’s NCI stood at 71 grams of CO₂ equivalent per megajoule, unchanged from the previous year.

The company plans to reduce this measure to net zero by 2050 as part of its transition strategy. However, intensity targets measure emissions relative to energy production. This means total emissions can remain stable if energy demand continues to grow.

Shell’s Offset Strategy: Retiring Millions with Certified Credits

In 2025, Shell retired 5.8 million carbon credits. Of these, 5.5 million were tied to its Net Carbon Intensity (NCI) efforts. This included 2.0 million linked to energy product sales. The company emphasizes careful sourcing and screening of credits.

Of the total retired, 59% were certified by Verra’s Verified Carbon Standard (VCS), 22% by Gold Standard, 10% by the ACR program, and 9% via Climate Action Reserve.

Rising Energy Demand Keeps Fossil Fuels in Play

Global energy demand continues to rise. This affects emissions across the energy sector. According to the International Energy Agency, energy-related carbon dioxide emissions grew in many regions due to rising industrial activity and energy demand.

• Emissions from natural gas increased by 2.5% in 2024, while coal emissions rose almost 1% in recent global energy data, per the IEA report.

Oil emissions also increased slightly as countries continued to rely on fossil fuels to meet economic growth and energy access needs. This demand helps explain why oil and gas companies still play a large role in global energy supply.

At the same time, the energy transition is accelerating. Governments and companies are investing in renewable power, electric vehicles, and cleaner fuels. These trends are reshaping the global energy system.

LNG and Carbon Capture in Shell’s Transition Plan

Shell continues to expand its liquefied natural gas business. The company expects global LNG demand to grow about 60% by 2040, driven by economic growth and industrial energy needs.

Natural gas produces fewer emissions than coal when burned. Because of this, some countries view LNG as a transitional fuel during the shift to cleaner energy systems.

Shell is also investing in carbon capture and storage (CCS). One major project is the Northern Lights carbon storage project in Norway, developed with industry partners. The facility aims to store at least 5 million tons of CO₂ per year once expanded.

• SEE MORE: World’s First Commercial CCS Plant Owned by Shell, Equinor, and TotalEnergies Injects CO2 in North Sea

Carbon capture technology can help reduce emissions from industries that are difficult to electrify, such as heavy manufacturing and shipping. However, CCS projects remain limited in number compared with the scale of global emissions.

The Enormous Scale of the Global Energy Transition

The world’s energy system is changing quickly. But the scale of fossil fuel use remains large.

Energy companies like Shell supply fuels used across transportation, power generation, and heavy industry. This explains why emissions linked to these companies are so high.

At the same time, new technologies are reshaping the energy landscape. Renewable power, electric vehicles, hydrogen fuels, and carbon capture are expanding rapidly.

Shell itself notes that new technologies could cut the carbon intensity of the global energy system by half by 2050 if current trends continue. Still, hitting global climate targets will require faster progress.

What Shell’s Emissions Reveal About the Energy System 

Shell’s reported 1.1 billion tons of CO₂ emissions in 2025 show the scale of the global energy challenge. The majority of these emissions come not from company operations, but from the fuels used by millions of consumers and industries worldwide.

Reducing emissions across this system will require major changes in energy production, infrastructure, and technology. Oil and gas companies remain central players in this transition. Their investments, technologies, and energy supply decisions will influence how quickly the global economy moves toward lower-carbon energy.

The next decades will determine whether the energy system can meet rising demand while also reducing emissions at the scale required to reach global climate goals.

• READ MORE: Shell’s Initiative to Cut Methane in Rice Farming in the Philippines and Create Carbon Credits

The post Big Oil’s Carbon Reality: Shell’s 1.1 Billion-Ton Footprint Shows the Scale of the Energy Transition appeared first on Carbon Credits.

For decades, the National Association for Stock Car Auto Racing, aka NASCAR, stood for roaring engines, speed, and fierce competition. The sport, headquartered in Daytona Beach, Florida, built its reputation on powerful combustion engines and high-energy racing events across the United States.

However, the organization has recently shifted gears. Today, NASCAR is embracing sustainability and cleaner technology while still protecting the thrill of racing. The sport is working toward a bold target: net-zero operating emissions by 2035.

This goal forms the backbone of the NASCAR IMPACT strategy. The plan looks at emissions across the sport’s core activities—from race cars and racetrack facilities to large racing events. Instead of relying on a single solution, NASCAR is using multiple approaches, such as renewable energy, cleaner fuels, and improved waste management.

In short, the future of stock-car racing is becoming cleaner without losing its competitive edge.

NASCAR’s Net-Zero Mission

Back in 2023, NASCAR announced its commitment to reach net-zero carbon emissions from its operations by 2035. In simple terms, the goal focuses on the fuel and electricity used at NASCAR-owned racetracks and offices.

To make this happen, the organization plans to reduce overall energy consumption while increasing the share of renewable power used across its operations.

The strategy focuses on three main areas:

• Race cars
• Racing events
• Facilities and offices

Each of these areas produces emissions in different ways. For example, race cars consume fuel, while events require power generators and logistics fleets. Meanwhile, offices and racetracks use electricity, heating, and cooling systems. Therefore, NASCAR’s climate strategy combines efficiency improvements with cleaner energy solutions.

Here’s a snapshot of the motosport company’s 2024 electricity consumption and emisions profile: 

Electric Innovation Hits the Track

One of the biggest steps toward cleaner racing arrived in July 2024. Through the ABB NASCAR Electrification Partnership, the sport introduced its first electric race car prototype.

The ABB NASCAR EV Prototype represents a new chapter in motorsports technology. Engineers from NASCAR built the vehicle with support from three major automakers, i.e., Chevrolet, Ford Motor Company, and Toyota.

The project shows how the racing world can experiment with emerging technologies. NASCAR does not plan to replace traditional engines overnight. Instead, the electric prototype works as a testing ground for future performance innovations.

Motorsports has always pushed automotive technology forward. Now, sustainability is becoming part of that engineering race.

A Major Biofuel Partnership with POET Changes the Game

Another major development came through NASCAR’s partnership with POET LLC, the world’s largest biofuel producer. The agreement named POET as the Official Bioethanol Partner of NASCAR. More importantly, the collaboration introduces zero-carbon bioethanol into the sport’s fuel mix.

NASCAR will blend this bioethanol with fuel supplied by its long-time partner Sunoco. As a result, the racing series will become the first major motorsport to use zero-carbon bioethanol fuel.

• This change highlights a key idea behind NASCAR’s sustainability strategy: improving performance while cutting emissions.

Bioethanol already offers several advantages. It burns cleaner than conventional gasoline and produces lower carbon intensity. At the same time, it maintains the high-octane performance required for competitive racing.

For drivers and teams, fuel keeps engines running at full power. For the environment, it reduces pollution.

The partnership also brings strong visibility for the biofuel industry. Beginning this season, POET sponsors the “POET Restart Zone” at NASCAR-owned tracks—one of the most intense moments during races when cars restart after caution periods.

In addition, POET branding now appears on all NASCAR fuel cans alongside Sunoco. This move reinforces the growing role of renewable fuels in motorsports.

Cleaner Fuels for the Next Generation of Race Cars

NASCAR’s national racing series already uses Sunoco Green E15, a high-performance unleaded fuel blend. The fuel contains 15% bioethanol and 85% gasoline.

During the 2024 racing season, NASCAR consumed over 261,000 gallons of Sunoco Green E15 across its three national racing series.

While combustion engines will remain part of NASCAR’s identity, the organization plans to keep improving fuel technology over the next decade. And cleaner fuels are a practical step. They allow the sport to reduce emissions without requiring major changes to vehicle design.

Renewable Diesel in NASCAR’s Hauler Fleet

Behind every NASCAR race lies a massive logistics operation. The sport’s equipment travels thousands of miles each season in heavy transport trucks.

In 2024, NASCAR’s fleet of 17 Mack diesel haulers traveled more than 805,000 miles—roughly the distance of going to the moon and back.

Significantly, the company started testing renewable diesel fuel from wood residues, agricultural waste, and used cooking oil to reduce emissions from transportation

The fuel works in existing engines without modifications. That makes it a convenient way to cut emissions immediately while longer-term solutions develop. It also burns cleaner than traditional diesel, which helps lower the environmental footprint of NASCAR’s logistics operations.

• ALSO CHECK: Ferrari’s Road to Glory: Massive €1.74 Billion Revenue Boom and Net Zero Goals Aligned

Powering Racetracks with Renewable Energy Credits

Beyond vehicles and events, NASCAR is also transforming the energy used at its facilities.

• In 2023, the organization committed to powering all of its facilities with 100% renewable electricity for the next five years. To achieve this, NASCAR partnered with NextEra Energy.
• The company purchased Green-e Certified Renewable Energy Credits (RECs) from wind farms across the United States. These credits ensure that an equivalent amount of renewable electricity enters the national power grid. By buying these credits, NASCAR offsets the electricity used at its racetracks and offices.

However, the organization does not plan to rely on credits forever. In the long run, NASCAR hopes to install solar panels directly at its facilities, producing clean electricity on site and strengthening local renewable energy supply.

Reducing Energy Demand at Facilities

Using renewable power is important. But reducing overall energy demand matters just as much.

NASCAR has begun implementing energy-efficiency programs across its buildings and racetracks. These measures focus on cutting electricity consumption while lowering operating costs.

Another key area involves fugitive emissions. These are small gas leaks from equipment such as air conditioners and refrigeration systems. Although they may seem minor, some of these gases can be powerful greenhouse pollutants.

Therefore, NASCAR closely monitors these systems and works to prevent leaks whenever possible.

Cutting Emissions at Racing Events

Large racing events require significant energy. Power generators, logistics fleets, and track equipment all contribute to emissions.

Therefore, NASCAR has started analyzing energy use across its race operations. Data collection helps the organization understand where emissions are highest and where improvements can deliver the biggest impact.

One example involves track dryers. After heavy rain, NASCAR uses specialized machines to dry racetracks quickly so races can continue. Previously, these machines used jet fuel. However, NASCAR recently introduced the first propane-powered track dryer with help from partner Suburban Propane.

• The change is expected to reduce emissions from these dryers by about 58%. It may seem like a small improvement, but these incremental changes add up over time.

Another example comes from the Chicago Street Race. By redesigning the layout of temporary power units, the event operations team managed to run multiple areas using a single hybrid generator.

• As a result, the race reduced fuel consumption by more than 27% compared with the previous year.

Recycling and Waste Reduction Across the Sport

Sustainability efforts at NASCAR extend beyond energy and fuel. Waste management has become another major focus.

The organization now operates expanded recycling programs across its tracks and offices. These programs target a wide range of materials, including aluminum cans, plastic bottles, used racing tires, and motor oil.

NASCAR also partners with waste-management companies to divert materials from landfills and promote circular economy practices.

Even fans play a role. During race weekends, it encourages spectators to recycle and dispose of waste responsibly. These engagement campaigns help reduce the environmental footprint of large racing events.

The Future of Sustainable Motorsports

NASCAR remains one of the most recognizable motorsports organizations in the world. Traditionally, the sport has focused on stock-car racing events across the Southeast and Midwest United States.

Yet today, NASCAR is also becoming a testing ground for sustainability innovation. From electric prototypes and renewable fuels to cleaner logistics and renewable energy systems, the organization is experimenting with multiple solutions at once.

Importantly, these efforts prove that high performance and environmental responsibility can coexist. Motorsports has always pushed the limits of engineering. Now, the industry is beginning to push the limits of sustainability as well.

• READ MORE: Mercedes-AMG PETRONAS Expands Carbon Removal Portfolio to Accelerate Net Zero Push 

The post NASCAR’s Biofuel Revolution: How America’s Biggest Motorsport Is Hitting Full Throttle on Net Zero appeared first on Carbon Credits.

South Korea plans to require large companies to publish mandatory sustainability reports starting in 2028. The rule will apply first to major firms listed on the country’s main stock exchange.

Starting in 2028, KOSPI (the largest South Korean stocks) companies with at least 30 trillion won (around $22 billion) in assets will need to reveal their environmental, social, and governance (ESG) practices.

South Korea’s Sustainability Reporting Era Begins

The reporting requirement will expand in 2029 to companies with 10 trillion won or more in assets. The first phase will focus on about 58 of South Korea‘s largest listed companies. This is based on estimates from the Financial Services Commission (FSC).

Companies must publish clear details on climate risks, emissions, governance, and sustainability strategies. These disclosures will cover greenhouse gas emissions, climate financial risks, and plans to achieve climate goals.

The government says the policy will improve transparency for investors and strengthen confidence in Korea’s financial markets. It will also help the country align with global ESG reporting standards that investors increasingly expect.

South Korea has big industrial companies operating in electronics, cars, steel, and shipbuilding. These industries play a major role in global supply chains. Clear sustainability reporting could help these companies maintain access to international capital and markets.

A Gradual Rollout to Ease Corporate Burden

In 2026, South Korea’s Financial Services Commission released a roadmap for ESG disclosure. The policy forms part of the government’s broader strategy to support the country’s green transition.

Officials decided on a phased rollout to give companies enough time to prepare. Key elements of the plan include:

• Mandatory ESG reporting for large KOSPI companies starting in 2028.
• Expansion to additional companies in 2029.
• Full adoption of supply-chain emissions reporting by 2031.

Companies will receive a three-year grace period before they must disclose Scope 3 emissions. These emissions include indirect emissions across a company’s value chain. These can come from suppliers, transportation, product use, and waste.

For many firms, Scope 3 emissions represent the largest share of total emissions. The Carbon Disclosure Project (CDP) states that Scope 3 emissions can be over 11 times greater than direct operational emissions for many companies.

Regulators gave companies more time to create systems for measuring these emissions due to the complexity involved.

Initially, the rules will operate through stock exchange disclosure requirements. Over time, the government plans to convert them into formal legal reporting obligations.

How Climate Finance Powers Korea’s Green Shift

The new reporting framework supports South Korea’s broader climate policy and energy transition. The government aims to raise about 790 trillion won (around $590 billion) by 2032.

The funding will support climate-related investments and help industries modernize and reduce emissions. Priority sectors include renewable energy, hydrogen technologies, green infrastructure, low-carbon manufacturing, and energy efficiency upgrades.

Heavy industries are a key focus of these efforts. South Korea is a top producer of steel, petrochemicals, and semiconductors, which need a lot of energy. The country generates 33% of its electricity from coal, per International Energy Agency data. 

The IEA says South Korea was one of the top ten energy consumers in 2024. Industry made up a large part of the electricity demand. The government will introduce transition finance frameworks. These will help high-emission industries get funding for cleaner technologies.

South Korea has pledged to reach carbon neutrality by 2050. The country also aims to reduce greenhouse gas emissions 40% below 2018 levels by 2030 under its updated climate plan. Stronger ESG reporting will help investors measure corporate progress toward these goals.

Why Mandatory ESG Reporting Is Going Global

South Korea’s policy reflects a global shift toward mandatory sustainability reporting. Governments and regulators increasingly require companies to disclose climate risks and emissions data. These rules show how climate change and energy policies can impact businesses.

The EU’s Corporate Sustainability Reporting Directive (CSRD) is a major reporting framework. The rule will eventually apply to around 50,000 companies operating in Europe, according to the European Commission.

Global standards are also emerging. The International Sustainability Standards Board (ISSB) released two key disclosure standards in 2023:

• IFRS S1, covering general sustainability disclosures
• IFRS S2, covering climate-related disclosures

More than 20 jurisdictions representing over half of global GDP have announced plans to adopt or align with ISSB standards. South Korea’s reporting framework follows these international guidelines.

The country set up the Korea Sustainability Standards Board (KSSB). Its job is to create national reporting standards that match the ISSB framework.

Companies will be required to disclose:

• climate risks and opportunities,
• governance structures for sustainability oversight,
• emissions data and reduction targets, and
• strategy and risk management practices.

This alignment helps investors compare companies across different markets using similar data.

Korean Corporations Step Up Sustainability Disclosures

Corporate sustainability reporting has already expanded in South Korea. By 2024, about 203 Korean companies will publish voluntary sustainability reports. This comes from ESG research groups that track disclosure trends.

Large Korean firms have increasingly adopted global reporting frameworks such as:

• Task Force on Climate-related Financial Disclosures (TCFD)
• Global Reporting Initiative (GRI)
• Sustainability Accounting Standards Board (SASB)

However, many companies asked regulators to delay mandatory reporting requirements. Businesses said they need more time to create reliable emissions measurement systems and reporting processes.

The government responded by pushing the start date to 2028. The extra time helps companies create internal ESG management systems and enhance data collection. Financial institutions strongly support stronger sustainability disclosure.

Investors increasingly use ESG data when evaluating risk and long-term performance. According to the Global Sustainable Investment Alliance, sustainable investment assets reached over $30 trillion globally in recent years. Analysts forecast it to reach $40 trillion by 2030.

Transparent ESG reporting helps companies attract capital from these investors. It also helps banks and asset managers assess climate risks across their portfolios.

The Future of ESG Disclosure in Asia

South Korea’s new rules could influence ESG reporting across Asia. Several financial centers in the region are strengthening climate reporting policies.

For instance, Japan plans to expand sustainability disclosure rules for major companies beginning around 2027. The country now requires climate risk disclosures for companies on its Prime Market. These disclosures must follow the TCFD framework.

Singapore and Hong Kong are both starting mandatory climate reporting that will follow ISSB standards. China is also expanding its climate disclosure rules to other major sectors. 

• SEE MORE: China Expands Carbon Reporting to Airlines and Heavy Industry in Major Climate Disclosure Shift

These developments reflect growing pressure from global investors. Many asset managers now need detailed climate data from companies. They use this information before deciding on investments.

Consistent reporting frameworks also help multinational companies operate across multiple markets. Large corporations often face different disclosure rules in different countries. Aligning with global standards can reduce compliance costs and improve transparency.

As more countries adopt ESG reporting rules, sustainability reporting may become as common as financial reporting.

Transparency as the New Standard in Global Markets

South Korea’s plan to introduce mandatory sustainability reporting in 2028 marks a major step in the country’s climate and financial policy. The phased rollout will start with the largest listed companies and later expand to more firms. Companies will need to disclose detailed data on emissions, climate risks, and sustainability strategies.

The policy aims to improve transparency for investors and align South Korea with global ESG reporting standards. As sustainability disclosure becomes more common worldwide, companies with strong climate strategies and clear reporting systems may gain an advantage in global capital markets.

• READ MORE: U.S. Backs South Korea’s Uranium Enrichment and Nuclear-Powered Submarine Ambitions

The post South Korea Mandates ISSB-Aligned Climate Reporting by 2028 for Corporate Giants appeared first on Carbon Credits.