Shell: sustainability at the heart of our business
09 May 2006, Royal Dutch Shell plc today released its ninth annual report on its environmental and social performance. The report underlines the company’s commitment to help meet the world’s current and future energy needs in environmentally and socially responsible ways.
The Shell Sustainability Report 2005 discusses at length the energy challenge facing the world over the next half-century, which will require governments, energy users and producers to do three things simultaneously: meet the increasing demand for energy; keep supplies secure; and reduce energy’s environmental and social impacts.
Launching the report, Chief Executive Jeroen van der Veer said:
"I genuinely believe the world can meet the challenge with the right combination of technology, investment, partnerships and effective policies from governments.
"I am convinced there is enough energy to meet growing future demand.
"But this won’t be sustainable unless the environmental impacts from growing fossil fuel use can be managed. They can be and, for the sake of our grandchildren, they must be.
“I see the potential to develop ways of using fossil fuels so that increasingly the CO2 produced is captured, stored or used productively, creating what I call greener fossil fuels. If we can make that work, both technically and financially, we would be on the way to something really big and exciting,” Mr van der Veer said.
The report describes Shell’s contribution to meeting the energy challenge through increased investment; developing cleaner fuel for the transport sector; developing alternative sources of electricity; managing greenhouse gas and other environmental and social impacts from fossil fuels; maintaining a wide range of oil and natural gas sources from different regions; and working with governments, vehicle manufacturers and customers to help align incentives, raise awareness and promote new energy options.
2005 Report highlights
* Shell used an External Review Committee to assess the 2005 report’s balance, completeness and responsiveness, based on the principles of the AA1000 Assurance Standard. Composed of five international experts in the environmental and social issues, that matter most to Shell’s stakeholders, this marks a first for Shell and a first for a major oil and gas company. [See note below for Committee membership].
* Shell’s actions to manage greenhouse gas emissions gathered pace. The company cut its own emissions; stepped up research into capturing carbon dioxide; and revamped its alternative energy strategy focusing on the most promising technologies: two for transport (biofuel and hydrogen) and two electricity sources (wind and thin-film solar).
* Real progress was made in protecting the environment and meeting the needs of indigenous people at the Sakhalin II project in Russia.
* Despite growing security problems, the Shell-operated joint venture in Nigeria moved closer to its goal to end continuous flaring in 2009. The joint venture has reduced flaring volumes by 30% since 2001.
The report discusses openly the mistakes that Shell made in 2005 and its efforts to learn from them, including its problems on the Corrib project in Ireland where the company paid too little attention to the community’s concerns about safety and local development.
Shell’s reporting is also responding to the diverging needs of different stakeholders. The 2005 Shell Sustainability Report and supporting websites are targeted at non-financial external stakeholders. To meet the needs of shareholders and the financial community, Shell included significantly more environmental and social information in its 2005 Annual Report/20-F. For staff, Shell provides a Sustainability Review, focused on what its commitment means to its employees in practice.
Shell continues to report in accordance with the Global Reporting Initiative (GRI) and the International Petroleum Industry Environmental Conservation Association guidelines. Shell’s contribution to the UN Global Compact and the Millennium Development Goals is described on the Shell.com website.
To see the full report please click on www.shell.com/envandsociety
The External Review Committee was chaired by Jermyn Brooks, Executive Director and CFO of Transparency International. The other members of the Committee were:
* Roger Hammond - Development Director, Living Earth
* Margaret Jungk - Director of the Human Rights & Business Development Department, Danish Institute for Human Rights
* Dr Li Lailai - National Programme Director, LEAD, China and Director of the Institute for Environment and Development in Beijing (LED)
* Jonathan Lash - World Resources Institute
Their uncensored assessment is published in the report.
This document contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell plc. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ’’anticipate’’, ’’believe’’, ’’could’’, ’’estimate’’, ’’expect’’, ’’intend’’, ’’may’’, ’’plan’’, ’’objectives’’, ’’outlook’’, ’’probably’’, ’’project’’, ’’will’’, ’’seek’’, ’’target’’, ’’risks’’, ’’goals’’, ’’should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this Report, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, project delay or advancement, approvals and cost estimates; and (m) changes in trading conditions. All forward-looking statements contained in this document are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this document. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this document.
Please refer to the Royal Dutch Shell plc’s Annual Report on Form 20-F for the year ended December 31, 2005 for a description of certain important factors, risks and uncertainties that may affect the Company’s businesses.
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