In 2020, total divestment proceeds were $4 billion. See the Shell Annual Report 2020 for details. Divestments are a key part of our efforts to refresh and upgrade our portfolio as we drive towards our target to become a net-zero emissions energy business by 2050, in step with society.
We use well-established processes, applied in a systematic way, to guide our assessment of risk in divestments. We continually seek to strengthen our approach by building diverse perspectives into our decision-making process.
We carry out due diligence on potential buyers when divesting parts of our business. We collaborate with both in-house and external experts, where appropriate, to conduct checks and examine key attributes of potential buyers.
These attributes may include their financial strength; operating culture; health, safety, security and environment (HSSE) policies; and approach to ethics and compliance. We also consider risk and people management processes and standards; community liaison practices; and social investment programmes.
Applicable attributes are assessed against Shell’s policies, as well as the likely requirements of relevant laws and regulations.
Divestments are often subject to the approval of regulatory authorities, which includes potential buyers’ HSSE capacity and capability.