Supply chain

Shell aims to work with suppliers, including contractors, that behave in an economically, environmentally and socially responsible manner, as set out in our Shell General Business Principles and Shell Supplier Principles. Our standard contract terms require adherence to these or equivalent principles. They require contractors and suppliers to:

• protect the environment in compliance with all applicable environmental laws and regulations;
• use energy and natural resources efficiently; and
• continually look for ways to minimise waste, emissions and discharges from their operations, products and services.

In 2023, we worked with around 25,000 suppliers globally.

Collaboration with suppliers is crucial to achieving Powering Progress. By delivering, learning and improving together with honesty, integrity and mutual respect, we can accelerate our shared progress towards achieving net zero.

In 2023, our operated and non-operated ventures spent around $48.6 billion on goods and services from suppliers around the world [A].

[A] Non-GAAP financial measure. See Reconciliation of non-GAAP financial measures where non-GAAP reconciliation is provided.

Decarbonising the supply chain

We work closely with our suppliers to promote decarbonisation. This involves using digital technology to establish transparency in energy consumption and emissions throughout our supply chains.

We encourage our suppliers to set emission ambitions and track performance, share best practice and exchange emissions data with their own supply chains. We are also developing plans to work with the 50 largest carbon emitters in our supply chain to create a shared vision and roadmap for decarbonisation. By the end of 2023, we had signed non-binding memoranda of understanding with eight companies to identify and potentially provide solutions for decarbonisation.

Respecting human rights

Our supply chains are at the heart of powering lives. Shell is committed to respecting human rights as set out in the UN Universal Declaration of Human Rights. Our focus in the supply chain is on worker welfare, modern slavery and other labour rights. When procuring solar panels and modules for our projects, for example, we engage extensively with our suppliers to promote transparency and understand human rights risks in our supply chain. In step with rapidly evolving societal and legislative expectations, our supplier due diligence relating to human rights performance will play an increasingly important role.

Towards zero waste

We are working towards achieving zero waste and circularity in our supply chains by reducing waste generated and increasing reuse and recycling in our business.

In 2023, we focused on improving waste management at 12 key facilities in Argentina, Australia, Canada, Qatar and the USA. We also developed a waste dashboard that provides visibility across facilities. It includes a waste baseline, waste management vendors, progress tracking against planned reductions, and identification of common waste types that can lead to opportunities for reducing waste.

We aim to source responsibly and build diverse local supply chains (see Local content). We are committed to collaborating with our suppliers to drive innovation and collectively move towards a sustainable future.

Discover how Shell contributes to sustainability through its supply chain at www.shell.com/business-customers/powering-progress-in-supply-chain.