“AT SHELL WE BELIEVE THAT IN MAKING OUR CONTRIBUTION, THERE IS NO TIME TO WASTE. WE ARE WORKING ON WHAT WE CAN DO TODAY TO CONTRIBUTE TO A SUSTAINABLE ENERGY FUTURE.”
Welcome to the Shell Sustainability Report for 2010. In this report we show how consideration for safety, the environment and communities lies at the core of our operations and the development of our future energy projects.
The event that dominated the year for our industry showed the critical importance of getting our approach to safety right. The BP Deepwater Horizon incident in the Gulf of Mexico and the oil spill that followed will have repercussions for many years to come.
The incident became an environmental disaster that affected communities, but it began as a tragic accident: 11 people died, and others were seriously injured. Safety has always been the first priority at Shell. A major incident like this serves as a warning to all to guard against complacency.
It will take time for our industry to recover credibility. But I believe Shell’s technical expertise, safety culture and rigorous global standards demonstrate that we are capable of operating responsibly, however challenging the conditions.
SECURING CLEANER, DIVERSE ENERGY
With the world now out of recession, energy demand is again increasing. All energy sources will be needed to meet this demand, but in the decades ahead the bulk of the world’s energy is expected to continue to come from fossil fuels. Producing oil and gas from deep waters will remain crucial. These resources are a vital part of the secure and diverse supplies of energy the world will need, as are energy resources from other technically challenging environments. Shell’s responsible approach and continued investment in technology and innovation will help us to deliver this energy.
As an energy company we must meet our customers’ needs, and our ability to work with joint-venture partners helps us to do this. In 2010 a number of our major projects came on-stream or continued to perform well. Others approached completion for start-up in 2011. We continued to raise our production of natural gas – by far the cleanest-burning fossil fuel – that will account for over half our energy output in 2012. We believe natural gas will play an essential role in managing the carbon dioxide (CO2) emissions caused by the world’s rising energy demand.
Tackling climate change remains urgent and requires action by governments, industry and consumers. The UN climate change conference in Cancun, Mexico, produced a more encouraging outcome than expected. But with so many countries involved, the process of addressing climate change through international agreements is inevitably slow.
At Shell we believe that in making our contribution, there is no time to waste. We are working on what we can do today to contribute to a sustainable energy future: producing more natural gas for power generation; focusing on sustainable biofuels; helping to develop carbon capture and storage technology; and making our own operations more energy efficient. Our advanced fuels and lubricants are helping our customers save energy.
Delivering energy involves meeting other complex sustainability challenges. Strong principles and building trust underpin our approach. Respect for human rights, for example, is embedded in the Shell General Business Principles. Shell contributed to the work of Professor John Ruggie, the UN special representative for business and human rights, whose guiding principles were published in early 2011. The grievance mechanism at the Sakhalin 2 liquefied natural gas project in Russia formed part of Professor Ruggie’s pilot work on grievance procedures. We plan to introduce similar approaches for communities near other major projects and facilities in the coming years.
In Nigeria, Shell Petroleum Development Company (SPDC) took a significant step forward in transparency for our industry. SPDC has set up a publicly accessible website to report on oil spills from the facilities it operates. This allows the tracking of the response to every spill, whether it is operational or the result of sabotage or theft.
I am proud to have signed up to the UN Global Compact LEAD, an initiative which reinforces the commitment of business to the principles of the Global Compact. Shell was a founding member of the Global Compact in 2000 and we support its principles in human rights, labour, environment and anti-corruption. The Sustainability Report 2010 reports on our progress in these areas.
I would like to thank the members of the External Review Committee for their important contributions in producing the Sustainability Report 2010. Once more their valuable insights have helped shape this report.
Chief Executive Officer