Definitions

a

• acre

  approximately 0.004 square kilometres

• AGM

  Annual General Meeting

• API

  American Petroleum Institute

b

• b(/d)

  barrels (per day)

• boe(/d)

  barrels of oil equivalent (per day); natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel

• Bonuses

  Payments for bonuses usually paid upon signing an agreement or a contract, or when a commercial discovery is declared, or production has commenced or production has reached a milestone.

c

• Carbon-neutral

  The carbon dioxide equivalent life-cycle emissions of the product have been offset with verified nature-based carbon credits.

• CCS

  carbon capture and storage

• CEO

  Chief Executive Officer

• CFO

  Chief Financial Officer

• CO₂

  carbon dioxide

• COP28

  28^th meeting of the Conference of the Parties to the United Nations Climate Change Conferences

• Corporate income tax

  This is a direct tax imposed on companies’ profits. It is sometimes levied at a national level but can also be levied on a state or local basis.

• Critical habitat

  Represents areas of high biodiversity value, it takes into account both global and national priorities and builds on the conservation principles of ‘vulnerability’ (threat) and ‘irreplaceability’ (rarity/restricted distribution). It is identified based on five criteria that address habitat of significant importance to threatened, endemic, congregatory and migratory species, threatened or unique ecosystems, and key evolutionary processes (IFC, 2019).

d

• DE&I

  Diversity, equity and inclusion

e

• EC

  Executive Committee

• Ethnic minority

  In the UK, this group includes all ethnic groups other than the ‘white British’ group

• EV

  Electric vehicle

• Excise duties

  This is a tax on manufacturers and is due at the point of production rather than sale. Companies which manufacture products that are subject to excise duties are responsible for reporting and paying these taxes. Excise taxes are in addition to other forms of indirect tax, such as customs duties, VAT or GST, and typically form part of the cost of the product.

f

• Fees

  Fees and other sums paid as consideration for acquiring a licence for gaining access to an area where extractive activities are performed. Administrative government fees that are not specifically related to the extractive sector, or to access to extractive resources, are excluded. Also excluded are payments made in return for services provided by a government.

• FID

  final investment decision

• FLNG

  floating liquefied natural gas

g

• GAAP

  generally accepted accounting principles

• GHG

  greenhouse gas

• GRI

  Global Reporting Initiative

• GTL

  gas-to-liquids

h

• HSE

  health, safety and environment

• HSSE

  health, safety, security and environment

• HSSE&SP

  health, safety, security, environment and social performance

i

• IEA

  International Energy Agency

• IFRS

  International Financial Reporting Standard(s)

• IOGP

  International Association of Oil & Gas Producers

• IPCC

  Intergovernmental Panel on Climate Change

• IPIECA

  The global oil and gas industry association for advancing environmental and social performance

• ISO

  International Organization for Standardization

• IUCN

  International Union for Conservation of Nature

j

• JV

  joint venture

k

• kboe(/d)

  thousand barrels of oil equivalent (per day); natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel

l

• LNG

  liquefied natural gas

• LPG

  liquefied petroleum gas

• LTIP

  Long-term incentive plan

m

• megajoule

  a unit of energy equal to one million joules

• MMBtu

  million British thermal units

• MOU

  memorandum of understanding

• mtpa

  million tonnes per annum

• MW

  megawatt

• MWh

  megawatt hours

n

• NBS

  Nature-Based Solutions

• NCF

  Net Carbon Footprint

• NCI

  net carbon intensity

• NCI

  net carbon intensity

• Net positive impact

  Net Positive Impact (NPI) on biodiversity is a target for project outcomes in which the impacts on biodiversity (i.e. the variety of ecosystems and living things) caused by the project are outweighed by the actions taken to avoid and reduce such impacts, rehabilitate affected species/landscapes and offset any residual impacts. (IFC, 2019)

• Net-zero deforestation

  Deforestation occurs when forests are converted to non-forest uses. In line with the definition of forest used by the Food and Agriculture Organization of the United Nations (2020), this commitment applies to land spanning more than 0.5 hectares with trees higher than five metres and a canopy cover of more than 10%, or trees able to reach these thresholds in situ. It does not include land that is predominantly under agricultural or urban land use. Biological status of forested areas after reafforestation to be equal or higher from original status.

• NGL

  natural gas liquids

• NGO

  non-governmental organisation

• NZE

  Net zero emissions

o

• OECD

  Organisation for Economic Co-operation and Development

• OGCI

  Oil and gas climate initiative

• OPEC

  Organization of the Petroleum Exporting Countries

p

• People of colour

  In the USA, this group includes American Indian or Alaskan Native; Asian, Black or African American; Hispanic/Latino; Native Hawaiian or Other Pacific Islander; or two or more races.

• per day

  volumes are converted into a daily basis using a calendar year

• Production entitlement

  This is the host government’s share of production. It includes the government’s share as a sovereign entity or through its participation as an equity or interest holder in projects within its home country.

• PSC

  production-sharing contract

• PSP

  Performance Share Plan

r

• R&D

  research and development

• REMCO

  Remuneration Committee

• RNG

  Renewable natural gas

• ROACE

  return on average capital employed

• Royalties

  Royalties are generally payment due for the use of an asset. Mineral royalties are payments to governments or other owners for the rights to extract oil and gas resources, typically at a set percentage of revenue less any deductions that may be taken. See also Trademark royalties.

s

• SAF

  Sustainable aviation fuel

• SCiN

  Shell Companies in Nigeria

• SEAM

  Safety, Environment and Asset Management

• SEC

  US Securities and Exchange Commission

• SGBP

  Shell General Business Principles

• SNEPCo

  Shell Nigeria Exploration and Production Company

• Solar power capacity

  Solar power installed capacity is measured in megawatts direct current (MWdc) as per industry standard. Solar power capacity for generation is shown in megawatts alternating current (MWac).

• SPDC

  Shell Petroleum Development Company of Nigeria Limited

• SUSCO

  Sustainability Committee

t

• TRCF

  total recordable case frequency

• TSR

  total shareholder return

u

• UN

  United Nations

• UNDP

  United Nations Development Programme

• UNEP

  United Nations Environment Programme

v

• VOC

  volatile organic compounds

• VPSHR

  Voluntary Principles on Security and Human Rights, which guide companies in assessing human rights risks when working with public and private security

w

• WBCSD

  World Business Council for Sustainable Development

z

• Zero waste

  The conservation of all resources by means of responsible production, consumption, reuse and recovery of products, packaging and materials without burning, and with no discharges to land, water, or air that threaten the environment or human health (Zero Waste International Alliance, 2018).