Sustainability governance
Shell has strong governance structures, supported by standards, policies and controls. These are the foundations of our decisions and actions at every level of the company.
We have put clear and effective governance structures in place throughout Shell, along with many performance standards and other controls. These influence the decisions we make and the actions we take, at every level of our company.
Our governance procedures involve the Board of Royal Dutch Shell plc, four Board Committees, our Executive Committee (EC), and the teams and individuals who work in our operations. We take rigorous care to ensure decisions are cascaded within the business.
The overall accountability for sustainability within Shell lies with the Chief Executive Officer and the EC. They are assisted by the health, safety, security, environment and social performance (HSSE&SP) executive team. Our standards are set out in our HSSE&SP Control Framework and apply to every Shell company. The process safety and HSSE&SP assurance team, with a mandate from the Corporate and Social Responsibility Committee (CSRC), provides independent assurance on compliance with the Control Framework.
Corporate and Social Responsibility Committee
In 2016, the Corporate and Social Responsibility Committee visited the Karachaganak facilities in Kazakhstan.
One of the four Board Committees is our CSRC. It reviews and advises on our sustainability policies and practices to ensure that these are discussed, understood, owned and promoted at Board level. This can include advising on areas as broad as climate change and human rights through to process safety management.
The CSRC also visits different Shell operations each year to speak with Shell employees, contractors and suppliers, as well as with community members and external stakeholders. After each visit, the CSRC shares its observations with the Board and with the management responsible for that project. The Committee’s work strengthens sustainability within our operations around the world.
The CSRC today
The CSRC's role is to review and advise Shell about our policies and performance against the Shell General Business Principles, our Code of Conduct and our mandatory HSSE&SP standards.
The CSRC meets regularly throughout the year. It reviews and discusses a wide range of sustainability-related topics and assesses our sustainability performance, audit results and the sustainable development metrics that apply to the Executive Committee. It also monitors major issues of public concern that may be relevant to Shell.
CSRC members
The CSRC had three members in 2016. Each was a non-executive director:
- in 2016, the Chairman of the CSRC was Hans Wijers, former Chief Executive and Chairman of Akzo Nobel (Chairman of the Committee with effect from May 20, 2015);
- Sir Nigel Sheinwald, a former British diplomat; and
- Patricia A. Woertz, a business leader with extensive oil industry experience.
In 2016, the CSRC visited the Karachaganak facilities in Kazakhstan, jointly operated by Shell (Shell interest 29.25%). During the visit, the CSRC engaged with local stakeholders including employees and government representatives. The CSRC also dedicated a session in 2016 to Nigeria and individual CSRC members visited the Moerdijk chemical plant and one of the Nederlandse Aardolie Maatschappij (NAM) gas fields in the Netherlands.
