Shell said Thursday it would step up its efforts to reduce the energy group's carbon footprint, a move that came in response to mounting pressure from investors urging the company to adapt to an expected flattening in oil consumption within as little as five years.

CEO Ben van Beurden told the Reuters news agency that it was also a reaction to international plans to phase out fossil fuels by the end of the century to combat global warming.

"We have to be at the forefront of the transition; by the middle of the century you want to look at a portfolio that is really fit for the future," van Beurden said.

Incentives for executives

While Shell sharply increased its oil and gas reserves through the $54-billion (50.8-billion-euro) acquisition of BG Group this year, it was resolved to focus on renewable energy, particularly wind and solar, the chief executive noted. He added the company would also push low-carbon biofuels and hydrogen as elements of a key growth engine beyond 2020.

Ben van Beurden confirmed that the size of bonus payments to executives, including the CEO and the chief financial officer, would be linked to "greenhouse gas management."

"We have linked executive remuneration in the past to energy intensity, and next year we're going to make it even more specific to the CO2 footprint metrics associated with these energy efficiencies," van Beurden emphasized.

hg/jd (Reuters, dpa)