Internal governance of industry association memberships

Our principles for participation in industry associations

Our approach

Governance

We have an internal management framework for industry associations. This builds on the foundations of the Shell Performance Framework, which is the governance framework adopted by Shell plc to deliver on its strategy. Our management framework for industry associations builds on Shell’s General Business Principles, Code of Conduct and Ethics and Compliance Manual.[1]

Climate and energy transition policy and advocacy alignment

• Within the industry associations we are members of, we are committed to advocating policy positions that we believe are in line with the goals of the Paris Agreement and the world achieving net-zero emissions by 2050.
• We publish our climate and energy transition public policy positions on www.shell.com/advocacy. They serve as a global framework for our advocacy on climate and energy transition topics. Shell Relationship Managers for industry associations are provided with guidance about advocating in line with these positions. We have processes in place to guide staff if we identify misalignment with an industry association.
• Every two years, we publish a review of the policy and advocacy positions of key industry associations, which includes the methodology for selecting and assessing the associations. Where we identify misalignment with our positions, we set out how we plan to address this and provide an update the following year. Important decisions relating to the review are discussed by the senior executive decision-making body with oversight of Shell’s public policy and advocacy priorities and positions. Where necessary, issues can be escalated in accordance with our usual escalation protocol. This is part of our annual assurance process.
• To address cases of misalignment with industry associations, Shell will take one or several of the following steps depending on our assessment of the importance of the topic, the extent of the misalignment, and the broader value of our membership:
  • Continue to be transparent about our own policy and advocacy positions, and the differences with our key industry associations, by publishing this information on our website;
  • Remain in the association and engage with it in areas where we have different views;
  • Pursue our advocacy independently or through other associations or coalitions; and/or
  • Reassess our membership where we identify material misalignment with our climate and energy transition positions. This includes weighing up the broader business value of remaining in the association, and the likelihood of the association changing its postion(s), against ending activities such as board and committee participation, or ending overall membership.

Our expectations of industry associations

Climate and energy transition policy and advocacy

We believe that any industry association we are a member of, and that is involved in climate and energy transition policy and advocacy, should lobby in line with the goals of the Paris Agreement and the world achieving net-zero emissions by 2050.

Transparency

We believe that the industry associations we are members of should publish the following information on their websites:

• List of member companies, including members of governing body/bodies; and
• Main public policy positions, consultation submissions and other evidence of advocacy positions (if appropriate).

We encourage industry associations to be transparent about their fee structures for membership.