Safety, Environment and Sustainability Committee

Committee membership and attendance for 2022

Catherine J. Hughes

Chair

100% attendance

5 out of 5 possible meetings attended

Member since: November 1, 2017

Neil Carson OBE

Committee member

100% attendance

5 out of 5 possible meetings attended

Member since: June 1, 2019

Bram Schot

Committee member

80% attendance

4 out of 5 possible meetings attended

Member since: October 1, 2020

Jane Holl Lute

Committee member

100% attendance

3 out of 3 possible meetings attended

Member since: May 24, 2022

Committee member	Member since	Maximum possible meetings	Number of meetings attended	% of meetings attended
Catherine J. Hughes (Chair)	November 1, 2017	5	5	100%
Neil Carson OBE	June 1, 2019	5	5	100%
Bram Schot	October 1, 2020	5	4	80%
Jane Holl Lute	May 24, 2022	3	3	100%

“The SESCo focused on Shell’s safety and environmental performance and assurance programme in 2022, as well as targets for the energy transition and sustainability elements of Shell’s Powering Progress strategy.”

Purpose

The Safety, Environment and Sustainability Committee (SESCo) assists the Board in reviewing the policies, practices, targets and performance of Shell, primarily with respect to safety, environment including climate change, and broader sustainability.

Overview

The Committee meets regularly to review and discuss a wide range of important topics. These include the safe condition and responsible operation of Shell’s assets and facilities, environmental protection and greenhouse gas emissions, any major incidents that impact or had the potential to impact safety and environmental performance, and progress towards meeting Shell’s energy transition targets.

The Committee endorses the areas of the Shell annual assurance plan that are relevant to its Terms of Reference, which include Safety, Environment, Asset Management, and the non-financial elements of Shell’s Powering Progress strategy. The Committee also reviews the execution of these areas of the assurance plan and discusses audit outcomes.

The Committee assesses Shell’s overall sustainability performance and provides input to Shell’s annual reporting and disclosures on sustainability. It also advises the Remuneration Committee on metrics relating to safety and energy transition that apply to the Executive Committee annual scorecard and Long-term Incentive Plan.

The Committee reviews and considers external stakeholder perspectives in relation to Shell’s business, as well as how Shell addresses issues of public concern that could affect its reputation and licence to operate.

In line with the strategic importance of the Committee’s agenda, the Chair of the Board of Directors and the Chief Executive Officer of Shell plc regularly attend Committee meetings for discussions on specific topics.

Shell’s Chief Executive Officer and the Executive Committee hold overall accountability for sustainability within Shell.

Activities

During 2022, the Committee focused on the areas of greatest operational and strategic importance to Shell, in line with its Terms of Reference. This allowed the Committee to oversee effectively and thoroughly the practices and performance of the Company with respect to safety, environment including climate change, and broader sustainability.

The topics discussed in particular depth by the Committee included personal and process safety, a range of environmental topics, Shell’s energy transition targets, and remuneration metrics. The Committee also reviewed in detail Shell companies’ operations and the challenges faced in Nigeria.

The Committee reviewed the progress made against the non-financial elements of Shell’s Powering Progress strategy, including progress against the targets and commitments under the goals of Net-Zero Emissions, Respecting Nature, and Powering Lives. The Committee reviewed in particular the sustainability issues associated with Shell’s renewable energy businesses.

The Committee believes the Powering Progress strategy demonstrates Shell’s determination to play its full role in the energy transition. The Committee has conducted in-depth discussions with senior management about how Shell’s energy transition targets for the near term, medium term and longer term will be met through a combination of developing low carbon energy businesses, transforming existing assets into energy and chemicals parks, carbon abatement programmes, portfolio actions, the use of nature-based solutions, and the development of carbon capture, utilisation, and storage. The Committee reviewed Shell’s Energy Transition Progress Report in depth before its publication.

Following the Committee’s review of remuneration with management, the safety and energy transition metrics and targets have been enhanced for the 2023 Executive Committee annual scorecard and the 2023-25 Long-term Incentive Plan in order to drive further performance improvements.

The Committee also reviewed wider matters of public concern during 2022 such as plastic waste, methane emissions, the flaring of natural gas, water scarcity, just transition, human rights, diversity and inclusion, and access to energy in low- and middle-income countries. The Committee engaged with external stakeholders on the topic of nature-based solutions and gained valuable insights on how Shell’s approach is perceived.

The Committee continued to monitor Shell’s approach to the health of its employees and contractors, in terms of mental well-being in particular. The Committee also continued to review the security risks faced by Shell and how these risks are being proactively managed.

The Committee Chair held meetings throughout the year with senior leaders to discuss specific topics, including safety performance and enhanced assurance protocols.

For further details on SESCo and how Shell manages sustainability see www.shell.com

Site visits

The Committee visited the LNG Canada joint-venture project in British Columbia, Canada, in September 2022. The visit included a site tour at Kitimat, meetings with staff, and local community engagements with the Chief of the Haisla Nation and Mayor of Kitimat. In Vancouver, the Committee held further meetings with LNG Canada management and engaged with the Premier of British Columbia and relevant Ministers.