SUSTAINABILITY REPORT Royal Dutch Shell plc Sustainability Report 2013 02 30 CONTENTS OUR APPROACH OUR PERFORMANCE 03 Introduction from the CEO 31 Economic 04 Building a sustainable energy future 32 Environmental 05 Sustainability and our business strategy 34 Social 06 Living by our principles 36 Environmental and social data 07 Safety 38 External Review Committee 08 Communities 40 About our reporting 09 Environment 41 About our data 10 Climate change 11 Focus on: Carbon capture and storage 12 OUR ACTIVITIES 13 Sustainable development in Shell 14 Natural gas 15 Tight gas and oil 16 Liquefi ed natural gas 17 Contractors, suppliers and joint ventures 18 Deep water 19 Iraq 20 Alaska 22 Nigeria 25 Focus on: Partners and collaboration 26 Oil sands 27 Focus on: Technology and innovation 28 Fuels and products 29 Biofuels Cover photo Scientists use 3D technology to review seismic data to help locate oil and gas reservoirs. Rijswijk, the Netherlands. New Lens Scenarios disclaimer venture, partnership or company, after exclusion of all fi scal and regulatory developments including regulatory This publication contains data from Shell’s New Lens third-party interest. This publication contains forward- measures addressing climate change; (k) economic and Scenarios. The New Lens Scenarios are a part of an looking statements concerning the fi nancial condition, fi nancial market conditions in various countries and ongoing process used in Shell for 40 years to challenge results of operations and businesses of Royal Dutch Shell. regions; (l) political risks, including the risks of executives’ perspectives on the future business All statements other than statements of historical fact are, expropriation and renegotiation of the terms of contracts environment. We base them on plausible assumptions or may be deemed to be, forward-looking statements. with governmental entities, delays or advancements in the and quantifi cation, and they are designed to stretch Forward-looking statements are statements of future approval of projects and delays in the reimbursement for management to consider events that may only be remotely expectations that are based on management’s current shared costs; and (m) changes in trading conditions. All possible. Scenarios, therefore, are not intended to be expectations and assumptions and involve known and forward-looking statements contained in this publication predictions of likely future events or outcomes and investors unknown risks and uncertainties that could cause actual are expressly qualifi ed in their entirety by the cautionary should not rely on them when making an investment results, performance or events to differ materially from statements contained or referred to in this section. Readers decision with regards to Royal Dutch Shell plc securities. those expressed or implied in these statements. should not place undue reliance on forward-looking Forward-looking statements include, among other things, statements. Additional risk factors that may affect future Cautionary note statements concerning the potential exposure of Royal results are contained in Royal Dutch Shell’s 20-F for the The companies in which Royal Dutch Shell plc directly and Dutch Shell to market risks and statements expressing year ended December 31, 2013 (available at www.shell. indirectly owns investments are separate entities. In this management’s expectations, beliefs, estimates, forecasts, com/investor and www.sec.gov). These risk factors also publication “Shell”, “Shell group” and “Royal Dutch Shell” projections and assumptions. These forward-looking expressly qualify all forward-looking statements contained are sometimes used for convenience where references are statements are identifi ed by their use of terms and phrases in this publication and should be considered by the reader. made to Royal Dutch Shell plc and its subsidiaries in such as “anticipate”, “believe”, “could”, “estimate”, Each forward-looking statement speaks only as of the date general. Likewise, the words “we”, “us” and “our” are also “expect”, “goals”, “intend”, “may”, “objectives”, “outlook”, of this publication, April 9, 2014. Neither Royal Dutch used to refer to subsidiaries in general or to those who “plan”, “probably”, “project”, “risks”, “schedule”, “seek”, Shell plc nor any of its subsidiaries undertake any work for them. These expressions are also used where no “should”, “target”, “will” and similar terms and phrases. obligation to publicly update or revise any forward- useful purpose is served by identifying the particular There are a number of factors that could affect the future looking statement as a result of new information, future company or companies. “Subsidiaries”, “Shell operations of Royal Dutch Shell and could cause those events or other information. In light of these risks, results subsidiaries” and “Shell companies” as used in this results to differ materially from those expressed in the could differ materially from those stated, implied or publication refer to companies over which Royal Dutch forward-looking statements included in this publication, inferred from the forward-looking statements contained in Shell plc either directly or indirectly has control. including (without limitation): (a) price fl uctuations in crude this publication. We may have used certain terms, such as Companies over which Shell has joint control are generally oil and natural gas; (b) changes in demand for Shell’s resources, in this publication that United States Securities referred to “joint ventures” and companies over which products; (c) currency fl uctuations; (d) drilling and and Exchange Commission (SEC) strictly prohibits us from Shell has signifi cant infl uence but neither control nor joint production results; (e) reserves estimates; (f) loss of market including in our fi lings with the SEC. U.S. Investors are control are referred to as “associates”. In this publication, share and industry competition; (g) environmental and urged to consider closely the disclosure in our Form 20-F, joint ventures and associates may also be referred to as physical risks; (h) risks associated with the identifi cation of File No 1-32575, available on the SEC website “equity-accounted investments”. The term “Shell interest” is suitable potential acquisition properties and targets, and www.sec.gov. You can also obtain these forms from the used for convenience to indicate the direct and/or indirect successful negotiation and completion of such transactions; SEC by calling 1-800-SEC-0330. (for example, through our 23% shareholding in Woodside (i) the risk of doing business in developing countries and Petroleum Ltd.) ownership interest held by Shell in a countries subject to international sanctions; (j) legislative, INTRODUCTION 01 SHELL SUSTAINABILITY REPORT 2013 OUR BUSINESSES Producing oil Mining oil sands and gas Exploring for oil Extracting and gas bitumen Refining oil into fuels and lubricants Producing petrochemicals Producing biofuels Developing fields Supply and Shipping distribution and trading Converting gas to liquid products (GTL) Generating B2B sales Shipping wind power and trading Chemical products for plastics, Regasifying LNG Liquefying gas coatings, detergents by cooling (LNG) Retail sales Fuels and lubricants for transport B2B sales Retail sales Gas for cooking, heating, electrical power ABOUT SHELL Shell is a global group of energy and petrochemical companies employing 92,000 people Projects and Technology in more than 70 countries. Our aim is to help meet the energy needs of society in ways that Projects and Technology is overall accountable for are economically, environmentally and socially responsible. wells engineering and wells completion, for project engineering and project execution. It drives the Upstream International and gas to market. Upstream Americas also extracts research and innovation to create technology Upstream International manages the Upstream bitumen from oil sands that is converted into solutions. It provides technical services and business outside the Americas. It searches for and synthetic crude oil. Its activities are managed technology capability covering both upstream and recovers crude oil, natural gas and natural gas primarily by lines of business which are logically downstream activities. It is responsible for providing liquids, liquefi es and transports gas, and operates combined activities underpinned by strategic functional leadership across Shell in the areas of the upstream and midstream infrastructure necessary themes. The wind power activities in the USA are safety, environment and social performance as well to deliver oil and gas to market. Its activities are part of Upstream Americas. as contracting and procurement. managed primarily by lines of business which are logically combined activities underpinned by Downstream www.shell.com/about strategic themes. Downstream manages the manufacturing, supply, distribution and marketing activities for oil products, Upstream Americas biofuels and chemicals. These activities are Upstream Americas manages the Upstream business organised into globally managed classes of in North and South America. It searches for and business. Downstream trades Shell’s fl ow of recovers crude oil, natural gas and natural gas hydrocarbons and other energy-related products. liquids, transports gas and operates the upstream It also oversees Shell’s interests in alternative energy, and midstream infrastructure necessary to deliver oil excluding wind. OUR APPROACH Shell works to help meet the world’s growing demand for