A just transition
Shell recognises the importance of a just transition, which means a fairer distribution of the costs and benefits of the world’s transition to a net-zero emissions energy system.
We aim to contribute to a just transition by working with governments and society to make a positive economic and social impact, while minimising negative effects, throughout our energy transition journey.
This is part of our work to power lives. In 2023, we made progress in supporting a just transition across a range of themes, including skills training, trialling a new model to share profits with local communities and improving energy access.
Skills for the future
As more jobs are created in renewable energy, people working in oil and gas may wish or need to acquire new skills.
In 2023, around 6,900 Shell employees — up from around 4,000 in 2022 — completed courses linked to the energy transition, including hydrogen production, carbon capture and storage, and greenhouse gas and energy management.
In the UK, we aim to help 15,000 people into jobs with a focus on the energy transition by 2035. Shell, along with its partners, is supporting the creation of two energy transition skills hubs in Scotland and one in Wales. The facilities, which are expected to open in 2024 and 2025, aim to provide people with skills for the future, such as in wind turbine maintenance and heat pump installation.
Communities
At our Pottendijk wind and solar power park in the Netherlands, which opened in 2023, we are sharing the proceeds of the renewable energy we generate. Over the next 16 years, we expect to pay around $2 million into a special community fund to be used as the community sees best.
In 2024, we pledged $200 million as part of a broader initiative to help people get access to energy in the near and medium term. The initiative aims to help millions of people in underserved communities in sub-Saharan Africa, India and South-east Asia get access to electricity and improved cooking conditions (as defined by the World Bank Multi-Tier Framework).
In Nigeria, Shell-funded investment company All On has agreed to invest $11 million in 25 mini-grid projects across the country. The company aims to finance affordable solar energy for communities that need it the most.
Human rights, governments and industry
Respecting human rights is an essential part of a just transition. Shell is committed to respecting human rights, as set out in the United Nations Universal Declaration of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. This includes our commitment to managing human rights issues that are central to the just transition, including, but not limited to, the rights of Indigenous Peoples; Free, Prior and Informed Consent; and access to remedy.
We also work with organisations to review how we embed just transition principles across our businesses. Opportunities to collaborate will be an important part of our approach. We continue to be actively involved in Energy for a Just Transition, which is run by Business for Social Responsibility and The B Team, and Ipieca’s Just Transition Task Force.
Learn how Shell’s tax contribution to governments and proposal on fiscal frameworks for the energy transition can contribute to a just and equitable energy transition.
Read more about our approach at www.shell.com/justtransition.
