SUSTAINABILITY REPORT Royal Dutch Shell plc Sustainability Report 2015 01 30 CONTENTS INTRODUCTION OUR PERFORMANCE 01 Introduction from the CEO 31 Safety 02 Topic selection for 2015 34 Environment 04 About Shell 38 Working with communities 06 How sustainability works at Shell 41 Shell Foundation 08 Sustainability governance 09 Embedding sustainability into projects 42 WORKING TOGETHER 10 43 Living by our principles 44 Environmental and social partners THE ENERGY TRANSITION 45 Collaborations 11 The energy future 46 Contractors and suppliers 13 Addressing climate change 47 Joint ventures 16 Natural gas 47 Our people 17 Liquefied natural gas 48 Economic performance 18 Research and development 49 Tax and transparency 19 Carbon capture and storage 20 Lower-carbon alternatives 50 DATA AND REPORTING 22 51 About our reporting MANAGING OPERATIONS 52 Environmental data Cover image 23 Our activities in Alaska 53 Social and safety data 24 Our activities in Nigeria 54 External Review Committee Shell is supporting a global energy 26 Tight gas and oil 56 Links transition to a low-carbon future. 27 Managing methane emissions We invest in areas such as carbon capture and storage, biofuels and 28 Flaring hydrogen as a transport fuel. 29 Oil sands New Lens Scenarios This report contains forward-looking statements of expropriation and renegotiation of the terms of contracts This publication contains data from Shell’s New Lens concerning the financial condition, results of operations with governmental entities, delays or advancements in Scenarios. The New Lens Scenarios are a part of an and businesses of Royal Dutch Shell. All statements other the approval of projects and delays in the reimbursement ongoing process used in Shell for 40 years to challenge than statements of historical fact are, or may be deemed for shared costs; and (m) changes in trading conditions. executives’ perspectives on the future business environment. to be, forward-looking statements. Forward-looking All forward-looking statements contained in this report We base them on plausible assumptions and quantifications, statements are statements of future expectations that are expressly qualified in their entirety by the cautionary and they are designed to stretch management to consider are based on management’s current expectations and statements contained or referred to in this section. Readers even events that may only be remotely possible. Scenarios, assumptions and involve known and unknown risks and should not place undue reliance on forward-looking therefore, are not intended to be predictions of likely future uncertainties that could cause actual results, performance statements. Additional risk factors that may affect events or outcomes and investors should not rely on them or events to differ materially from those expressed or future results are contained in Royal Dutch Shell’s 20-F when making an investment decision with regard to implied in these statements. Forward-looking statements for the year ended December 31, 2015 (available at Royal Dutch Shell plc securities. include, among other things, statements concerning the www.shell.com/investor and www.sec.gov). 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US investors are arrangements over which Shell has joint control are share and industry competition; (g) environmental and urged to consider closely the disclosure in our generally referred to as “joint ventures” and “joint physical risks; (h) risks associated with the identification Form 20-F, File No 1-32575, available on the SEC operations” respectively. Entities over which Shell has of suitable potential acquisition properties and targets, website www.sec.gov. significant influence but neither control nor joint control and successful negotiation and completion of such are referred to as “associates”. The term “Shell interest” transactions; (i) the risk of doing business in developing is used for convenience to indicate the direct and/or countries and countries subject to international sanctions; indirect (for example, through our 23% shareholding (j) legislative, fiscal and regulatory developments including in Woodside Petroleum Ltd.) ownership interest held by regulatory measures addressing climate change; Shell in a venture, partnership or company, after exclusion (k) economic and financial market conditions in various of all third-party interest. countries and regions; (l) political risks, including the risks INTRODUCTION 01 SHELL SUSTAINABILITY REPORT 2015 INTRODUCTION FROM THE CEO “I believe that greater co-operation across society is needed for a successful energy transition.” It was a significant year for the global community in 2015 with the adoption of the We continue to work to reduce our own historic Paris Agreement by 195 countries demonstrating a commitment to bring about greenhouse gas (GHG) emissions over the long a lower-carbon energy system. term. A screening value for GHG is included in our planned projects to inform our investment The year also presented Shell with a difficult business We all need to take steps to achieve a sustainable choices. Natural gas already makes up about environment. A low oil price meant making some world economy. To achieve a low-carbon society, half of the energy we supply. The acquisition tough choices about our long-term investments. three main areas must be addressed. Firstly, of BG Group in 2016 brings more gas to our As we continue on this path, I am determined that the world needs to become more energy efficient. production. It is likely that over the next few operating our business responsibly – with respect This means adopting fundamentally different decades, through the global energy transition, for people, their safety, communities and the approaches in areas such as city planning, Shell will emerge as a different company. environment – remains a priority. Sustainability, for infrastructure and transport, and better energy me, is essential to our responsible operation and to efficiency standards. Secondly, there is a need for WORKING TOGETHER being a valued and respected member of society. more renewable energy in the system, working in Governments can also make choices that enable combination with gas to provide reliable electricity. the transition: we support energy policies that IMPROVING OUR OPERATIONS This involves significantly increasing the use of incentivise businesses and consumers to choose At Shell, we have long had a strong focus on safety electricity, including providing electricity to the low-carbon options. I believe that greater and, in 2015, our safety performance improved in 1.1 billion people who currently do not have co-operation across society is needed for a many areas. However, seven people lost their lives access. Thirdly, the world needs to reduce successful energy transition. More cross-sector at our operations in Nigeria. This deeply saddens the carbon intensity of the fossil-fuel share coalitions – where business, government and me and my thoughts are with the families of those of the energy system. civil society work effectively together – will involved. Incidents