Local content
We want to make a positive difference to countries and local communities where we operate. We do this by creating jobs, training people, supporting local businesses and buying goods and services from local suppliers — collectively referred to as local content. We also work to include in our supply chain enterprises that are part of historically under-represented or underserved groups.
Shell local content activities in 2023 [A]
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83%
spent on goods and services purchased from suppliers based in the same country of operation
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61%
spent in Canada, Germany, the Netherlands, the UK and the USA
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12%
spent in low-income countries [B]
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90%
of the 12% spent in low-income countries is with local suppliers [B]
In 2023, around 83% of what we spent on goods and services globally was purchased from suppliers based in the same country of operation, also called local procurement. About 60.7% of our procurement was in Canada, Germany, the Netherlands, the UK and the USA, of which 83% was spent with local suppliers in these countries.
We estimate that around 12% of what we spent on goods and services was spent in countries that, according to the UN Development Programme’s Human Development Index 2021, have a gross national income of less than $15,000 a year per person. In these countries, Shell companies spent around 90% with local suppliers.
In 2023, our Scotford Complex in Canada signed a Good Neighbour Agreement with the Alexander First Nation and Enoch Cree Nation, and awarded a three-year maintenance contract to an Alexander First Nation joint venture. In cases where First Nation entities are unsuccessful in their applications, we hold debriefings to explain why.
In Namibia, where we are exploring for offshore oil and gas, we conducted a baseline study with an industry peer in 2023 to assess the potential of local suppliers for inclusion in our supply chain.
And in the USA, the Women’s Business Enterprise National Council named Shell a Top Corporation for Women’s Business Enterprises for “implementing world-class diversity and inclusion programs that enable growth and innovation, while breaking down barriers for women enterprises”. The award was one of four that Shell received in the USA in 2023 for its efforts in local content and diversity.
Discover more about how we work to support the countries in which we operate in the Community skills and entrepreneurship section and at www.shell.com/sustainability/communities/local-employment-and-enterprise.
