SHARE YOUR OPINION Please let us know your views on this report, or any SHELL ANNUAL REPORTS issues it raises, by e-mail to [email protected] PHOTOGRAPHY BY SHELL STAFF Some of the photos in this report were taken by Shell staff who were invited to show what sustainable development meant to them in action around the world. PAPER SPECIFICATION The paper used is made from 25% de-inked post-consumer waste, 25% pre-consumer waste and 50% virgin fibre under ISO 14001. All pulps are Elemental Chlorine Free. The use of the FSC logo identifies products which contain wood from well-managed forests certified in accordance with the rules of the Forest Stewardship Council. Designed by Flag Printed by Taylor Bloxham under ISO 14001 Annual Report and Form 20-F for the Annual Review and Summary Financial Financial and Operational Information year ended December 31, 2008 Statements 2008 2004–2008 ROYAL DUTCH SHELL PLC SUSTAINABILITY REPORT 2008 A comprehensive operational and A summarised operational and financial Five years’ detailed financial and financial overview of Shell. overview of Shell. operational information, including maps. CAUTIONARY NOTE Jaaroverzicht en verkorte jaarrekening The companies in which Royal Dutch Shell plc directly and indirectly owns investments are 2008 separate entities. In this publication “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in Dutch language version. RESPONSIBLE ENERGY general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this publication refer to companies in which Royal Dutch Shell either directly OTHER PUBLICATIONS SUSTAINABILITY REPORT or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control Shell Technology Report are referred to as “jointly controlled entities”. In this publication, associates and jointly controlled An overview of 27 advanced technologies. entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 34% shareholding in www.shell.com/technology Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. Shell General Business Principles This publication contains forward-looking statements concerning the financial condition, results of Fundamental principles that govern how operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are each Shell company conducts its affairs. statements of future expectations that are based on management’s current expectations and www.shell.com/sgbp 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 Shell Code of Conduct potential exposure of Royal Dutch Shell to market risks and statements expressing management’s Standards of behaviour expected 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’’, from employees. ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, www.shell.com/codeofconduct ‘‘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 publication, 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 share 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) Shell Sustainability Report 2008 Shell Sustainability Review 2008 legislative, fiscal and regulatory developments including potential litigation and regulatory effects Report on progress in contributing to A summarised report on progress in arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation sustainable development. contributing to sustainable development. of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this publication 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. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2008 (available at www. shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this publication, 08 May 2009. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise AVAILABLE FROM 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 www.shell.com/annualreport Royal Dutch Shell plc Annual Report/20-F Service for forward-looking statements contained in this publication. The online reports have interactive c/o Bankside US residents – Tel +1 888 400 7789 The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in tools to generate charts and to Tel +44 (0)1635 232 700 their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under download pdfs by chapter. E-mail [email protected] existing economic and operating conditions. We use certain terms in this publication that SEC’s Financial tables can be downloaded guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website as Excel files. www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330. RESPONSIBLE ENERGY ADDITIONAL WEB CONTENT SHELL AND This Report is supported on the Shell website with THE ENERGY additional environmental, social and financial performance data and more detailed information on CHALLENGE our approach to sustainable development and related issues. Web links on each page show where to find INTRODUCTION 1 this information. WHO WE ARE AND WHAT WE DO 2 KEY PERFORMANCE INDICATORS We have key performance indicators that were FUTURE ENERGY SYSTEM 4 developed with our stakeholders. These enable us to OUR STRATEGY 6 track our performance, and help us better manage efforts across our operations for these key global OUR APPROACH 8 environmental and social impacts. These are the INTERVIEW WITH OUR CHIEF EXECUTIVE 10 same indicators we use internally when we assess CLIMATE CHANGE 12 our sustainable development performance in our Shell Scorecard. DON’T JUST TAKE OUR WORD FOR IT A committee of external experts has once again reviewed the balance, completeness and responsiveness of this Report. GRI BUILDING A We continue to use the Global Reporting Initiative’s RESPONSIBLE G3 guidelines. Information is available on ENERGY FUTURE www.shell.com/gri. MORE UPSTREAM OIL 14 CLEANER FUEL FOR POWER 17 NIGERIA 20 MORE SUSTAINABLE TRANSPORT 22 CLEANER PRODUCTS 24 PEARL GAS TO LIQUIDS 25 RESPONSIBLE OPERATIONS OUR NEIGHBOURS 26 ENVIRONMENTAL IMPACTS 29 PERSONAL AND PROCESS SAFETY 32 JOINT VENTURES, CONTRACTORS AND SUPPLIERS 34 CHEMICALS IN SINGAPORE 35 EXTERNAL RECOGNITION MEASURING OUR PERFORMANCE PERFORMANCE DATA 36 EXTERNAL REVIEW COMMITTEE 38 OUR APPROACH TO REPORTING 40 FACT SHEET (INSIDE BACK COVER) Included in the Carbon Disclosure Project’s Carbon Disclosure Leadership Index. i Shell Sustainability Report 2008 INTRODUCTION 1 INTRODUCTION WHO WE ARE AND WHAT WE DO 2 FUTURE ENERGY SYSTEM 4 OUR STRATEGY 6 OUR APPROACH 8 INTERVIEW WITH OUR CHIEF EXECUTIVE 10 CLIMATE CHANGE 12 “