A. About the company and the Sustainability Initiatives
Royal Dutch Shell PLC, which is more commonly known as Shell, founded in the year 1907, is a group of global energy and petrochemical companies employing more than 80,000 people in more than 70 countries. The organization was formed as a result of the merger of Royal Dutch Petroleum Company and Shell Transport and Trading Company Limited. The company is currently headquartered in The Hague, Netherlands, and Incorporated in England and Wales. Forbes Global 2000, in the year 2019, ranked Shell as the 9th largest company in the world, the largest company outside the PRC and the USA, as well as the largest energy company in the world. Shell also topped the ranking of Forbes Global 500 in the year 2013. Shell is a public limited company with its shares listed on Euronext Amsterdam, London Stock Exchange, New York Stock Exchange, and Philippine Stock Exchange. Its primary listing is on the London Stock Exchange and is a part of the FTSE 100 Index.
Shell has been engaged in vertical integration and is now present in every area of the O&G industry. Shell is actively engaged in the exploration, production, logistics, distribution, power generation, petrochemicals, and commerce. Shell has also ventured into renewable sources of energy such as hydrogen, wind, bio-fuel, and energy-kite.
Shell has divided its operations into different businesses:
Upstream: This organisation is engaged in the exploration and extraction of crude oil, natural gas, and natural gas liquids. Marketing and transporting of Oil and Gas are also done by this division.
Integrated Gas: This organisation is engaged in the management of LNG activities and the production of GTL fuels. It also includes the exploration for and the extraction of natural gas, and the operation and maintenance of the infrastructure that is necessary to make gas available in the market.
New Energies: This organisation is future-focused. It is engaged in the exploration of new opportunities and investment in commercially viable areas. Its main focus is on alternative sources of energy for transport such as hydrogen, bio-fuel, and electricity. Wind and solar energy are also areas of focus.
Downstream: This organisation is engaged in the creation of an integrated value chain that refines and trades crude oil and others into different products, which are then sold all around the globe. The products include petrol, diesel, aviation fuel, sulphur, heating oil, marine fuel, bio-fuel, lubricants, and bitumen. In addition to these, petrochemicals and oil sand activities are also managed by this organisation.
Projects and Technology: This organisation is engaged in managing the projects undertaken by the company to ensure its timely completion and innovation for new technologies. It provides technical assistance to other organisations as well.
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DECLARATION
The suggestions made in and the views expressed in TSS Report are those of the group members and
don't represent that of the institute XIMB or of the company in discussion, Shell. The team declares
that the project report submitted is genuinely the team’s work and perspective.
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ACKNOWLEDGEMENT
The team owes its gratitude and thank Prof. Amar KJR Nayak for his meticulous guidance &
supervision throughout the entirety of the course of the project and for providing the necessary support
and information required for the completion of this project.
The team had the opportunity to learn the steps in learning about the various Sustainability measures
for the company in question and aligning it to its Vision and Goals for implementation.
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EXECUTIVE SUMMARY
The report aims to analyse Shell’s sustainability report in order to gain further insights about how
Shell is going about sustainability from an organizational point of view keeping in mind the current
consumer trends about energy and how it is combating the carbon footprint with novel initiatives to
make the world a good and better place for everyone.
The data was collected from secondary research from trusted sources like company website, annual
report, sector analysis report and others.
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Index
Topic Page No.
About the company and the Sustainability Initiatives 5
SDGs and Indicators as per UNSC 6
Review of Practices in the Industry 8
Shell’s Business Strategy 10
Strategic Ambitions 10
Sustainability at Shell 11
Embedding Sustainability into projects 12
Shell’s sustainable energy future 13
Working together to lower emissions 14
Decarbonizing Energy Use by Sector 14
4 SDGs that need to be prioritized 16
Circular economy for plastics 20
Suggestions and Recommendations 22
References 23
Plagiarism Report 23
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A. About the company and the Sustainability Initiatives
Royal Dutch Shell PLC, which is more commonly known as Shell, founded in the year 1907, is a group
of global energy and petrochemical companies employing more than 80,000 people in more than 70
countries. The organization was formed as a result of the merger of Royal Dutch Petroleum Company
and Shell Transport and Trading Company Limited. The company is currently headquartered in The
Hague, Netherlands, and Incorporated in England and Wales. Forbes Global 2000, in the year 2019,
ranked Shell as the 9th largest company in the world, the largest company outside the PRC and the
USA, as well as the largest energy company in the world. Shell also topped the ranking of Forbes
Global 500 in the year 2013. Shell is a public limited company with its shares listed on Euronext
Amsterdam, London Stock Exchange, New York Stock Exchange, and Philippine Stock Exchange. Its
primary listing is on the London Stock Exchange and is a part of the FTSE 100 Index.
Shell has been engaged in vertical integration and is now present in every area of the O&G industry.
Shell is actively engaged in the exploration, production, logistics, distribution, power generation,
petrochemicals, and commerce. Shell has also ventured into renewable sources of energy such as
hydrogen, wind, bio-fuel, and energy-kite.
Shell has divided its operations into different businesses:
Upstream: This organisation is engaged in the exploration and extraction of crude oil, natural gas, and
natural gas liquids. Marketing and transporting of Oil and Gas are also done by this division.
Integrated Gas: This organisation is engaged in the management of LNG activities and the production
of GTL fuels. It also includes the exploration for and the extraction of natural gas, and the operation
and maintenance of the infrastructure that is necessary to make gas available in the market.
New Energies: This organisation is future-focused. It is engaged in the exploration of new
opportunities and investment in commercially viable areas. Its main focus is on alternative sources of
energy for transport such as hydrogen, bio-fuel, and electricity. Wind and solar energy are also areas
of focus.
Downstream: This organisation is engaged in the creation of an integrated value chain that refines
and trades crude oil and others into different products, which are then sold all around the globe. The
products include petrol, diesel, aviation fuel, sulphur, heating oil, marine fuel, bio-fuel, lubricants, and
bitumen. In addition to these, petrochemicals and oil sand activities are also managed by this
organisation.
Projects and Technology: This organisation is engaged in managing the projects undertaken by the
company to ensure its timely completion and innovation for new technologies. It provides technical
assistance to other organisations as well.
The following are the sustainability initiatives undertaken by Shell:
Energy Transition and Climate Change: The company is in full support of the goal of the Paris
Agreement, which is to keep the increase in average global temperature to less than 2°C above the pre-
industrial level in this century. For this, Shell has been engaged in reducing its own emission as well
as helping its customers in reducing theirs. The company is venturing into more renewable and clean
sources of energy, such as wind and solar, which are important for a future with cleaner energy. The
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company is growing its New Energies business and investing heavily in low-carbon energy sources
like bio-fuels, wind power, etc.
Net Carbon Footprint: In the year 2017, Shell has announced that it will be reducing the carbon
footprint of the products sold by them. This takes into account the full lifecycle greenhouse gas
emission and emission by the customers when the product is used. It is a long-term ambition for Shell.
Shell has set a target to lower its net carbon footprint by 2% to 3% in comparison with 2016, by the
year 2021. And a reduction of 3% to 4% than the 2016 footprint by the year 2022.
Greenhouse Gas Emissions: Shell has the ambition to cut its intensity of greenhouse gas emissions
to half by 2050, which is aligned with the Paris Agreement. The company has already decreased its
emission by 1 million tonnes in the year 2019 as compared to 2018. Shell is looking forward to having
a greenhouse gas and energy management in place in its facilities where the emissions are more than
50,000 tonnes a year. These include the use of types of equipment, which are more energy-efficient,
renewable sources of power, and carbon capture and its storage.
Natural Gas: Natural Gas is the currently cleanest burning fossil fuel, and when compared to coal, it
produces a fraction of air pollution when it is burned to generate electricity. An increase in the role of
gas in this sector is one of the ways of moving towards a low-carbon future. Shell already manages
one of the largest fleets of LNG carriers and desires to increase the role of gas further.
Technology Development: Research and Development expenses of Shell in the year 2019 were USD
962 million. In 2018, the company spent USD 986 million. The company’s R&D projects also include
collaboration with universities, government labs, start-ups, and different incubators. In the year 2019,
Shell has started working on 223 R&D projects in collaboration with universities. Many of these
projects are inclined towards low carbon energy sources.
B. SDGs and Indicators as per UNSC
The United Nations’ 17 sustainable development goals (SDGs) are designed to be a blueprint for the
achievement of a better and sustainable future for everyone. These goals are basically a call for action
by all countries irrespective of the fact whether they are developed or developing. The governments of
the different countries have the responsibility of prioritising the approaches ensuring their
implementation that are aligned with the SDGs, but this cannot be achieved with the support of the
business houses and society.
Royal Dutch Shell PLC makes the greatest contribution to the following three sustainable
development goals:
Goal 7: Ensure that access to affordable, reliable, sustainable, and modern energy is there for all
Around 0.85 billion people on this earth do not have access to electricity. This figure is according to
the World Energy Outlook 2019 by the International Energy Agency. In addition, there are actually
millions of people who do not have access to a reliable supply of electricity. For social development
and economic empowerment of people, access to affordable and safe energy is a must.
The contribution of Shell towards the accomplishment of Goal 7 constitutes investments in the
companies which offer innovative solutions for energy access, such as solar home systems and mini-
grids, which are solar-powered. Shell has an ambition of providing a reliable and consistent supply of
electricity to 100 million people, mostly in Asia and Africa, by the year 2030.
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Targets and Indicators for Goal 7:
Target Indicator
Access to clean, reliable, & affordable energy
sources to everyone by 2030
Percentage of the global population which has
access to electricity
Percentage of the global population who rely
primarily on clean sources of power.
Substantial increment in the use of renewable
sources of energy as a share in the global
consumption of energy by 2030
Renewable energy consumption as a
percentage (%) of the total energy
consumption
Doubling the improving rate in energy
efficiency on a global level by 2030
Measurement of energy intensity in terms of
GDP and primary energy
Goal 8: Decent work and economic growth
To move people towards prosperity and eradicate poverty, employment is one of the crucial
requirements. Shell is engaged in offering job opportunities that comply with safety, labour, and health
standards. The company also collaborates with local governments to provide expertise and build job
skills. Shell also believes in encouraging small business houses to be a part of its supply chain to ensure
the development of small entrepreneurs as well. Shell contributes to economic growth by paying taxes
and royalties to local authorities on a timely basis. In 2019, the company published a new report
detailing that the corporate income tax that Shell paid in countries & locations around the world in
2018.
Targets and Indicators for Goal 8:
Targets Indicators
Maintain economic growth per capita in
accordance with the circumstances in the
country and at least 7% GDP growth rate for
developing countries
Growth rate annually of per capita real GDP
Considerably reduce the proportion of youth
who are not in education, training, or
employment by 2020
The proportion of youth not in education,
training, or employment
Promotion of local tourism to create jobs and
increase the popularity of local culture and
products by 2030
Tourism direct GDP as a percentage (%) of the
total GDP & its growth rate
Jobs in the tourism sector with respect to total
jobs and its growth rate
Empowerment and strengthening of financial
bodies to enhance access to banking,
insurance, and other financial services
No. of ATMs and bank branches per 1 lakh
adults
Percentage of adults having a bank account or
an account with any financial institution
Goal 13: Climate Action
The world is required to take action to combat the change in the climate and rise in the average global
temperature. The Paris Agreement has set the goal of holding the rise in global average temperature
this century to well below 2-degree Celsius above the pre-industrial level. Each & every one of us have
a vital role to play in this society, to achieve the set of goals defined by the Paris Agreement, and Shell
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intends to support it and comply with it. The company is continuously engaged in working towards
reducing its Net Carbon Footprint by cutting the intensity of the GHG emissions of the energy products
we sell by half by 2050, and by 20% by 2035 when compared to the 2016 levels.
Targets and Indicators for Goal 13:
Targets Indicators
To strengthen resilience towards climate-
related hazards and natural disasters in all
countries
No. of deaths, persons affected by a disaster,
and missing persons per 1 lakh people
No. of countries with disaster risk reduction
capabilities and strategies
Percentage of local governments that are able
to adopt and implement local disaster risk
reduction strategies that align with national
disaster risk reduction strategies
Integrate measures to tackle climate change
into national policies, strategies, and planning
No. of countries that have the establishment or
operationalization of an integrated policy/plan
which boosts their ability to adapt to the
unfavorable impacts of climate change
Improving education, awareness-raising, and
human and institutional capabilities on
climate change adaptation, early warning, and
impact reduction
No. of countries that have integrated
mitigation, adaptation, early warning, and
impact reduction
No. of countries that have communicated the
strengthening of institutional, individual, and
systemic capacity-building to implement
adaptation, technology transfer, mitigation,
and development actions
These are explained in further details below.
C. Review of Practices in the Industry
The oil & gas industry has multiple opportunities to shift the public perception of it from being one of
the reasons for the sustainability problem to being a part of the solution for the problem. The industry
has been contributing to major economic growth since World War II, enhancing access to
transportation and electricity to a growingly larger part of the population all around the world. Big
international and national companies engaged in this business are participating actively in an energy
transition that is economically and socially acceptable to the future. Numerous initiatives are
underway, including the following:
The shift to natural gas and its role as a major bridge for a low-carbon future. Development in different
technologies such as LNG, floating LNG, and floating storage and regasification units are contributing
towards greater access to natural gas at the country level. Moreover, renewables such as wind and
solar, which have seen a decrease in major cost over the ten years and are competing with fossil fuels
for the generation of power, suffer from their intermittency and required to be merged with economic
energy storage solutions and/or a baseload energy supply like natural gas.
The Oil and Gas Climate Initiative, armed with a $1 billion fund over ten years to take pragmatic action
on climate change and decrease the carbon footprint pertaining to the energy value chains. This
initiative was launched by 10 NOCs and IOCs and has been recently joined by an additional three
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North-American IOCs. Among its initiatives are to monitor and try a reduction in methane leakage
and the development of carbon capture and carbon storage facilities.
The Clean Energy Ministerial and Mission Innovation initiatives that involve public as well as private
organizations (with the inclusion of oil & gas companies) making advancement on a variety of issues,
which includes sustainability themes which are as diverse as gender diversity in the energy sector,
clean hydrogen, and energy efficiency
The Greenhouse Gas Flaring Reduction Partnership is a public-private initiative, which is headed by
the World Bank, to address the problem of gas flaring, which decays resources and generates an
environmental issue. The partnership propagates best practices and contributes to developing country-
specific programs for gas flaring reduction.
Carbon capture, its utilization, and its storage as a single technology, which has the potential to be the
biggest decarbonization component in this energy transition. Its application also expands beyond
capture, from natural gas to the inclusion of power plants as well as industries (petrochemicals, steel,
aluminium, cement). Having expertise in carbon capture and through technologies related to its sub-
surfaces, the oil & gas industry have the capability to play a vital role in making this technology comply
with the most rigid regulatory requirements.
Clean energy and energy efficiency in the development and production of hydrocarbons and in the
downstream organizations. Advancement in technologies associated with technologies such as
digitalization is helping the industry upgrade its efficiency. Collaboration through organizations such
as IOGP and IPIECA is providing the opportunity for participants to standardize their operational
performance. In the refining sector (the most energy-consuming activity of the oil & gas industry),
voluntary use of standards like the Solomon Energy Intensity Index has assisted participants to upgrade
performance. New conversion routes such as crude-to-chemicals provide further potential for
efficiency. Another innovation in the upstream business is the growing use of renewable sources of
energy for enhanced recovery.
Development of renewable sources and energy storage solutions. Oil & gas companies are investing
in new third-generation biofuels like algae. They are also providing expertise to offshore wind projects
based on experience in developing platforms. A decrease in the cost of storing energy and its improved
reliability has also been part of the company strategies.
Many IOCs have created technology venture units to invest in start-ups involved with this energy
transition.
Another sustainability requirement for oil & gas companies is a better association with the
development of local populations. The industry has engaged itself in many aspects of corporate and
social responsibility and transparency in this area, and most NOCs and IOCs include a corporate
responsibility review in their annual reports.
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(Source: Shell sustainability website- OMAN)
D. Shell’s Business Strategy
Shell's business purpose is to power progress onward together by providing cleaner energy solutions
for everyone.
Its strategy is to strengthen the position as one of the world's leading energy company by providing
gas, oil and low-carbon energy products & services as the world's energy system gets transformed.
Safety & social responsibility are fundamental to Shells' business approach. Shell will only succeed
by working collaboratively together with its business partners, customers, governments, investors and
other stakeholders involved.
Its strategy is founded on the outlook for the energy sector and the chance to grasp the increasing
opportunities arising from the changes in the world around. The rising standard of living for a growing
global population will definitely continue to drive demand for sustainable energy for years to come.
The world will always need to find a suitable way to meet this growing energy demand, while
transitioning to a lower carbon-based energy system to counter the threats of climate change. While
liquid & gaseous fuels, including biofuels & hydrogen, will continue to be an integral part of the energy
mix in the current scenario, over time electricity needs to play a much bigger part in the world if it is
to meet the goals of the Paris Agreement.
Technological advancement & the driving need to tackle climate change means that there is a transition
currently under way to a multi-source energy system which is lower-carbon in nature, with an
increasing customer choice. Shell recognises that the pace & the path forward are uncertain & so
requires agile decision-making.
E. Strategic Ambitions
Shell has the following strategic ambitions to guide the entire organization in pursuing the common
purpose:
▪ to thrive in energy transition by responding to society's innate desire for cleaner, convenient and
competitive energy;
▪ to provide a world-class investment case which involves growing free cash flow & increasing returns
to investment, all built into a strong financial framework and a resilient and rewarding project portfolio;
▪ to sustain a strong societal licence to operate and make a positive contribution to society through our
activities.
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(Source: Shell sustainability report 2019)
F. Sustainability at Shell
Sustainability at Shell is all about providing cleaner energy solutions responsibly – in a way that
balances short- & long-term interests of the society, & that integrates economic, environmental &
social considerations into making decisions. Sustainability is always integrated across our business on
three different levels.
Running a safe, efficient, responsible & profitable business
This is the foundation of our approach. Shell strives to produce & deliver energy responsibly – with
respect for the people, their safety & their environment. At the simplest level, this only means doing
no harm onto others. Shell apply global standards to manage safety, the environment & how it engages
with communities & works to continuously improve their performance.
Helping shape a more sustainable energy future
Shell provides products that people need & want to improve their lives – in their homes & businesses,
& for transport. It aims to be responsible stewards for these products. Shell intends to adapt, innovate
& play their part in the overall global shift to provide cleaner energy for everyone. This means
transforming the product mix over time. Shell is taking extensive actions to provide lower-carbon
products to help its customers reduce the emissions. It aims to reduce the overall Net Carbon Footprint
of the energy products it sells by 50% by 2050, & 20% by 2035 compared to the 2016 levels, to align
with the goals of the Paris Agreement.
Making a positive contribution to society
Shell aims to play a positive role in communities where it operates in the wider society. Shell
contributes to the development of local economies by creating jobs, boosting skills, sourcing from
local suppliers, as well as paying taxes & royalties. The company supports community projects which
are based on the needs of the local people. Its ambition is to provide a reliable electricity supply to 100
million people, primarily in Africa & Asia, by 2030.
Support for international agreements
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Shell welcomes the UN sustainable development goals, which seeks to tackle the world's economic,
environmental & social challenges by 2030. It aims to play its valuable part in helping the governments
& society to achieve them.
Shell aims to respect human rights as set out towards the UN's Universal Declaration of Human Rights
& the International Labour Organization's core conventions. Shell is also the founding member of the
UN Global Compact & also supports a number of external voluntary codes that promotes responsible
business practices.
The company fully supports the Paris Agreement's goal to keep the rise in the global average
temperature in this century to well below 2 degrees Celsius above the pre-industrial levels & to pursue
further efforts to limit the temperature increase further to 1.5 degrees Celsius.
G. Embedding Sustainability into projects
Safety, & all of the environment & communities are vital considerations when it is planned, designed
& operated projects & facilities. It conducts impact assessments for every major project & consider
the economic, social, environmental & health opportunities & risks. The rising standards of living for
a growing global population are social, economic, environmental & health opportunities & risks.
Managing these & as well as political, commercial & technical risks is extremely essential to the
delivering of a successful project. Shell engages with communities & other stakeholders to discuss
these projects. Their input helps the organization to design & create better projects, comply with the
relevant social & environmental regulations, & to align with the international standards. This includes
standards from the World Bank & the International Finance Corporation (IFC).
Shell trains our project teams to embed sustainability into projects & aim to balance short- & long-
term business interests. All manner of specialists supports our project teams in areas such as
biodiversity, waste, air, energy & water management, & human rights, including indigenous peoples’
rights, cultural heritage & resettlement. The mandatory requirements in our Safety, Health, Security,
Environment & Social Performance Control Framework help to ensure our projects & facilities are
managed safely, responsibly & in a consistent way. Shell uses the frameworks for greenhouse gas
(GHG) management in projects to evaluate potential options to drive the GHG intensity performance
planning process helps to guide the decisions that Shell undertakes on technology & whether to move
ahead with a project.
Projects & facilities that produce more than 50,000 tonnes of GHG emissions a year are required to
have a GHG & energy management plan (EMP). To assess the resilience of the proposed projects,
Shell also consider potential costs associated with operational GHG emissions (see Greenhouse gas
emissions). The company tracks & reports our Net Carbon Footprints & work on reducing the
environmental impact of our operations. The Net Carbon Footprint used by Shell is a carbon intensity
measure that takes into account the estimated full lifecycle greenhouse gas emissions, including
customers’ emissions, of these products.
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(Source: Shell sustainability report 2019)
H. Shell’s sustainable energy future
Shell is taking action to tackle emissions and to help customers to reduce theirs too. As the energy
system evolves throughout the world, so will the business to provide the mix of products that Shell's
customers need.
The company believes that more renewable energy such as solar and wind is critically important for a
cleaner energy future, and that the way how people work, live, and play is increasingly going to need
to be derived by low-carbon electricity sources. But Shell expects that consumers will continue to use
oil & gas for some time to come and not all economic activities can be swiftly or easily cost effectively
electrified. Shell sees continuing, changing roles for the entire oil & gas industry alongside renewable
energy, hydrogen and new technologies.
Shell is growing our New Energies business with investments in low carbon technologies, including a
plethora of electric vehicle charging, biofuels, and wind power. Shell is also developing several
complementary approaches like the carbon capture & storage & nature-based solutions to manage the
difficult-to-avoid emissions that will obviously remain in the planet for years and years to come due
to the continued consumer use of oil and gas.
Addressing a challenge as big and far reaching as climate change requires an extensive collaborative,
society-wide approach. Shell believes that the smart policies from governments, for example applying
a cost to emissions through measures & approaches such as carbon-pricing mechanisms, supported by
the effective steps to reduce any emissions from businesses including the company's and from wider
society, are the best ways to reach solutions and drive progress.
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I. Working together to lower emissions
Shell continues to work with others to find ways to lower emissions, both the company's and society's
on a whole. Shell is a proud founding member of the Energy Transitions Commission, which is a
committee that brings together leaders from a plethora of sectors & interests. The commission aims to
accelerate the change towards a low-carbon energy system which will enable a robust economic
development & limit the rise in global average temperature this century to well below 2°C above
preindustrial indicators.
Shell works with the Oil and Gas Climate Initiative (OGCI), a voluntary CEO-led group focussing on
carbon capture, storage, & utilisation (CCUS), methane detection & reduction, as well as energy
efficacy.
In 2019, the OGCI launched a worldwide initiative to unlock a large-scale investment in CCUS, with
an early aim to double the amount of carbon dioxide that is currently stored in the atmosphere globally
before 2030. The initiative aims to decarbonise the existing industrial hubs all around the world,
starting in countries like the China, Norway, the UK, the Netherlands, & USA.
Shell is also members of the Hydrogen Council, a group that comprises of CEOs working to escalate
the profile of hydrogen's role in the complete transition to a low-carbon energy system.
In 2019, Shell published the first Industry Associations Climate Review, which assesses the company's
alignment with the 19 selected, key industry associations on climate-related policy.
Shell has announced support for various country climate initiatives, including but not limited to the
direct regulation of fuel methane in the USA, net-zero emissions in the UK by 2050; & the climate
accord in the Netherlands. Shell also supports the European Commission's proposal for the European
Union to achieve net-zero emissions by 2050.
J. Decarbonizing Energy Use by Sector
Shell also helped to develop a multitude of sector-specific programmes under the Mission Possible
Platform, which is a collaborative initiative by the World Economic Forum (WEF) in partnership with
the Energy Transitions Commission (ETC). The platform focuses on strong developing partnerships
for enabling the heavy industry & heavy-duty transport sectors to achieve net-zero carbon emissions.
For eg, Shell joined the Global Maritime Forum's Getting to Zero shipping coalition announced at the
UN Climate Summit at New York in the year 2019. The coalition brings together a more than 90
companies from a diverse range of backgrounds, including energy and finance, maritime, to engineer
clean fuels & vessels while pushing to ensure these are supported by adequate infrastructure, such as
ports. The coalition aims to only find a way to put a commercially viable net-zero emissions ship to
sea by 2030.
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(Source: Shell sustainability report 2019)
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K. 4 SDGs that need to be prioritized
(Source: Shell sustainability report 2019)
SDGs are collection of 17 interlinked goals that act as a blueprint for organizations to achieve a bigger
and better, in terms of scope, sustainable future to pass on to their future generations. The SDGs are
set to be completed by 2030 as a part of the "2030 agenda". The main problem associated with them
are they are deemed to be broad and generic; hosteller, in 2030, these Shell made more actionable by
a resolution adopted in the general assembly. To facilitate monitoring, a range of tools exist to track
progress towards the goals. All are intended towards making information more available and more
easily understood. For example, the online publication SDG-Tracker, launched in June 2018, presents
available stats across all indicators. The SDGs monitor multiple cross-cutting issues, like gender
equity, education, and culture cut across all of the SDGs.
The UN's 17 SDGs seek to address the world's biggest challenges, including poverty, improving the
health and education sector, making towns and cities sustainable, and tackling climate change.
Governments hold the responsibility for prioritizing and implementing approaches that meet the SDGs
but achieving the tasks mentioned above requires unprecedented collective action with business and
civil society.
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Although all the 17 SDGs are equally important for shell on a whole and shell, as an organization is
continuously trying to monitor and work towards those, there are some towards which shell can
contribute more and are also slightly more important. These goals are:
Goal 7: Ensure availability of affordable, trustable, sustainable and modern energy
Around 850 million people live without any access to electricity and millions more are estimated to
have an unreliable supply. Access to reliable and safe and sound energy is critical to
enabling economic and social development. Their contribution to Goal 7 includes investments in
companies that offer innovative energy access solutions, such as solar mini-grids and solar home
systems. Shell continue working to achieve their ambition to provide a trustable electricity supply to
more than 100 million people, majorly in Africa and Asia, by 2030.
Investing in energy access
Shell is investing in companies that deliver creative off-grid, or distributed, energy access solutions
with the potential to be developed on a bigger scale. These include solar grids and solar home solutions
that can deliver the trustable, affordable electricity customers need. Shell New Energies acquired a
minority staked interest in Orb Energy in 2019, providing solar energy systems in India and Africa,
mainly serving MSMEs, factories, schools and hospitals. Shell announced their intention to make an
investment in ShellGen, a company that develops, and operates grids in Africa, as Shell as in India,
which provides reliable and affordable solar lighting and Shell systems for households and small
businesses in 70 countries.
Shell's investment in a solar plant by SunFunder
(Source: Shell sustainability report 2019)
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Shell's work with Husk Shell Systems in India
(Source: Shell sustainability report 2019)
Social programmes
Alongside Shell's commercial investments, they support social programmes that benefit communities
where they work. Through these voluntary initiatives, they work with partners to provide individuals
& communities to access reliable electricity source to improve lives & generate greater economic
opportunities. They do investment in a wide range of programmes in specific communities located
near their operations to provide access to energy to local people.
Goal 8: Decent work and economic growth
Giving employment is a big step against poverty and helps people towards prosperity. They provide
jobs and follow applicable labour safety standards. They work with governments to offer training to
build local skills and expertise. They encourage local businesses to be part of their supply chain and
seek to ensure their suppliers meet Shell standards. Shell also support entrepreneurs and help young
people start their own businesses through social investment programmes such as Shell LiveWIRE.
They contribute to economic growth by paying taxes and royalties to local governments. In December
2019, Shell reported detailing the corporate income tax that Shell companies paid in countries and
locations around the world in 2018.
Ethical leadership
In 2019, Shell built on their ethical leadership expectations programme, which was introduced in 2018
for all senior executives across Shell. The programme was designed to reinforce and explore the level
of commitment to ethics and compliance in senior leaders. It supports the move in Shell to approach
ethics as a topic of personal ownership rather than a matter of technical compliance. Shell launched an
online kit to provide material and assistance for more than 1,000+ leaders to set out ethical leadership
expectations in sessions. These sessions are designed to reinforce and inculcate what Shell requires of
leaders, focusing on values, behaviours, business pressures and top leadership, with an emphasis on
ensuring people feel comfortable speaking up.
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Speaking up
Shell employees, contractors, suppliers and any third party can report any potential breaches of the
Code of Conduct confidentially and without revealing their identity through multiple channels,
including a global helpline, which is operated by an independent auditor. Shell has specialists who
investigate these concerns about the allegations about a breach of their Code of Conduct. If a violation
is confirmed, the Shell company will take appropriate action up to and including a contract termination
or dismissal. Shell maintain a stringent no retaliation policy to protect any person making an allegation
in good faith.
Shell has a tax presence in over 99 countries
(Source: Shell sustainability report 2019)
Goal 13: Climate Action
The world needs an actionable plan to tackle climate change. The Paris Agreement has set a goal of
holding the rise in global average temperature this century to Shell below two degrees Celsius above
preindustrial levels. Each and every one in society has a role to play to achieve the Paris goals, and
Shell intends to play its part. Shell continue to work towards delivering on their Carbon Footprint
ambition to cut severity of the greenhouse gas emissions of the energy products Shell sell by around
50% by 2050, and 20% by 2035 compared with their 2016 levels, in step with society. Shell only
control the emissions from their own activities, but by changing the mix of energy products Shell
supply, Shell also aim to help customers to Shell their emissions. For example, by continuing to
increase the Shell-emission energy products Shell offer, including natural gas, biofuels, hydrogen and
renewable Shell. Shell also aim to invest more in natural ecosystems to help drivers and businesses
offset their carbon emissions.
Shell continue to work with others to find ways to Shell emissions, both theirs and society's more
generally. Shell are a member of the Energy Transitions Commission, which binds leaders representing
a wide range of sectors and interests. The commission has an
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aim to accelerate change towards low-carbon energy solutions that enable effective economic
development and contain the rise in global average temperature this century to Shell below 2°C above
preindustrial levels. Shell works with the Oil and Gas Climate Initiative (OGCI), a CEO-led group that
focuses on carbon utilisation and storage (CCUS), methane detection and reduction, as Shell as energy
efficiency. In 2019, the OGCI took a step by launching an initiative to unlock large-scale investment
in CCUS, with an early ambition to double the amount of carbon dioxide that is currently stored
globally before the year of 2030. The initiative aims to reduce the carbon emissions in industrial hubs
around the world in China, Norway, the Netherlands, the UK & the USA. Shell is also a member of
the Hydrogen Council, a group comprising of CEOs working to raise the profile of hydrogen's role in
the transition to a low-carbon energy system.
(Source: Shell sustainability report 2019)
L. Circular economy for plastics
In 2019, for example, Shell announced their ambition to use 1 million tonnes of plastic waste as
feedstock at their chemical setups by 2025. This is a critical step towards building a circular economy
by enabling usage of plastic waste to produce chemicals, which are then used to make plastics again.
The first of their plants to do this in 2019 was Norco in Louisiana, USA. Their intention is to scale up
the technology and deploy it at their chemical plants in North America, Europe and Asia, gradually
achieving world-class production levels by 2025.
Finishing plastic waste
They are a founding member of the union to End Plastic Waste, which intends to invest about 1.5
billion dollars over the next five years to help end plastic pollution. The alliance represents a big effort
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to minimise and manage plastic waste and to develop systems for used plastics by helping to create
circular economy.
Reducing, reusing and recycling
Shell seeks to reduce, reuse and recycle packaging across their supply chains and are looking at
different and more sustainable packaging systems. For example, Shell companies that manufacture
lubricants were the first to innovate a modern, reusable container for motor engine oil that offered on
the Loop shopping platform, which enables customers to buy everyday products in recyclable
containers that do not result in waste. The container is designed to be recycled at least 100 times.
Shell’s NARCO plant which uses recyclable waste
(Source: Shell sustainability report 2019)
Inbound and outbound logistics
Shell aims to reduce the amount of waste generated. In their operations and supply chains, they are
also starting to plan a circular economy approach, based on the concept that things are meant to last
longer and to be reused, repurposed and recycled.
Waste performance
In 2019, Shell disposed of 2,113 thousand tonnes of hazardous and non-hazardous waste, which is
broadly comparable with 2018. In 2019, They sent more than 400000 tonnes off-site for recycling.
Three of their downstream refineries sent more than 80% of their waste generated during the year for
recycling or reuse in 2019.
Shell also assessed new waste management software that could help our efforts to reduce the amount
of waste They generate. They worked with our supplier to configure the system specifically for Shell.
They have started to implement this system in their Australian business and they plan to roll it out to
all major facilities across our businesses over the next few years. Their facilities in Australia have been
implementing a large number of waste improvement projects which are aimed at reducing waste to
landfill and giving those benefits to all the local communities. For example, the contractor that collects
and recycles the waste oil from their facilities in rural Queensland now also helps collects waste oil
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from farms during these trips, allowing this oil to be recycled as well. Shell has also been working
adamantly to improve the sustainability performance of their buildings by reducing consumption,
production and waste. For example, Shell Business Operations in Kuala Lumpur are aiming for zero
food waste to landfill in 2020 and have implemented several waste management’s projects. In 2019,
they reduced total food wastage at offices by 70%.
(Source: Shell sustainability report 2019)
M. Suggestions and Recommendations
Oil and natural gas development is a vital part of the economy at the global level but also has a major
role to play in climate change, environmental damage, and a host of different global challenges. A
report recently published has suggested many ways by which the oil & gas industry will be able to
reduce its negative impacts on the environment, alter a few of its practices, and provide to achievement
on all 17 Sustainable Development Goals.
Mapping the Oil & Gas Industry to the Sustainable Development Goals: An Atlas is a report that was
launched in July—was jointly produced by the International Finance Corporation (IFC) of the World
Bank Group, the London-based global oil and gas industry association for environmental and social
issues, the International Petroleum Industry Environmental Conservation Association (IPIECA), and
the United Nations Development Programme (UNDP). Every SDG lists different targets that are
relevant to the oil & gas industry; identifies certain measures that corporates, as well as governments
and communities all around the globe, can take to attain the SDGs; and showcases examples of
initiatives that have already achieved results. As the Atlas displays, the industry has already made
many efforts in areas such as local content and capacity building, economic development, community
engagement, anti-corruption, health and safety, greenhouse gas reduction, and environmental
protection.
Although the industry is capable of helping make progress toward all of the SDGs, the most important
role played by the industry will be in helping achieve the Goal 13 targets on climate change. In the
near future, natural gas can serve as an effective transition fuel, and helping countries switch from
coal-burning power to a much cleaner and non-polluting alternative while the industry boosts its efforts
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to limit the methane emissions related to the production of natural gas. In the long term, the oil & gas
industry has an important role that it needs to play in testing the practicality of large-scale carbon
capture and carbon storage.
The Atlas makes recommendations in several areas, including:
planning strategically for a net-zero emissions future
self-evaluating carbon durability
strengthening toughness and adaptive capacity to the impacts of climate change
mitigating emissions within oil and gas operations by minimizing flaring and methane
emissions
developing carbon capture and storage.
In November 2016, IPIECA members published “Exploring Low Emissions Pathways,” which lays
down the actions required to achieve certain targets set by the Paris Agreement. The document also
highlights the 3 familiar elements of a future world of low-emissions (increasing energy efficiency,
addressing emissions from other end-use sectors, and reducing emissions from power generation) and
endorses carbon capture and carbon storage as a key technology to support this transition.
N. References
https://www.shell.com/sustainability.html
https://www.shell.com/sustainability/sustainability-reporting-and-performance-
data/sustainability-reports.html
https://reports.shell.com/sustainability-report/2019/
O. Plagiarism Report