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Creating Business Value Through Strong Product Stewardship

Sam Smolik

Vice President HSSE/SD

Shell Downstream Inc

9th Asia Pacific Responsible Care Conference

Manila, Philippines, 16 Nov 2005

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Today’s objectives

1. The Shell Group’s foundations for Product Stewardship

2. Product Stewardship contributions to business success

3. HSSE issues in the rapidly growing Asia Pacific region

4. Challenges – for all of us

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The bedrock of the Shell Group’s approach to HSSE

We are committed to:

• no harm to people

• protect the environment

• use material and energy efficiently

• publicly report performance

• promote best practices

• manage HSSE like any other critical business activity

• strong culture

Every Shell Company:

• has a systematic approach to HSSE management

• sets targets for improvement

• has requirements for contractors

• has requirements for joint ventures

• includes HSSE performance in personnel appraisals

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Product Stewardship principles

1. Structured approach

2. Compliance with internal,

regulatory and customer

requirements

3. Reduce product risks

4. Reduce life cycle risks

5. Perform risk assessments

6. Consider economic,

environmental and social

risks

7. MSDS availability

8. Product HSSE information

9. Packaging and labeling

10. Emergency response

support

11. Managed use of products

12. External engagement

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From principles to performance

Principles

Business: HSSEpartnerships

Business success

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Our principles in action ……

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Principles in action: Isocyanate policy for polyol customers

Principle applied:Reduce product risks

• Supports industry goals - safe and responsible use

of toluene diisocyanate (TDI)

• Extends engagement on TDI Product Stewardship

to polyol-only customers

• Helps to jointly assure the safety and sustainability

of our industries

Business benefit:Reduction of business risks – safe handling of products

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Principles in action: Life cycle analysis of biofuels

Principle applied:Consider economic, environmental and social risks

• Research into life cycles of alternative fuels

• Impact of different agricultural practices and

transport requirements on the greenhouse gas

balance

• Improved understanding - biofuels contribution to

climate change challenge

Business benefit:Richer dialogue with key stakeholders on potential for biofuels

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Principles in action: Solvents customer appraisals in the Philippines

Principle applied:Reduce life cycle risks

• 10-20 appraisals carried out each year

• Customers value:

• being alerted to unsafe practices

• attention drawn to regular maintenance checks

• focus on benefits of clean, safe premises

Business benefit:Strengthens customer relationships, business risks reduced

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Principles in action: Product Stewardship Management System

Principle applied:Structured approach

• Business-owned systems: define management of

product-specific HSSE risks

• Ensures HSSE accountabilities at all levels are clear

and adequate resources are available

• Evergreen systems

Business benefit:Reduction of HSSE risks of products

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Issues faced in Asia Pacific

On-going rapid market growth

Large number of start-up and smaller businesses

Varying safety cultures across the region

Ever-expanding need to provide product support

and to manage regulatory issues

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Five simple challenges – Product Stewardship in Asia Pacific

1. Set clear and high expectations

2. Walk the talk

3. Collaborate

4. Set the right example

5. Show strong leadership

Cop

yri

gh

t: S

hell

Exp

lora

tion

& P

rod

uct

ion

Ltd

.

Creating Business Value Through Strong Product Stewardship

Sam Smolik

Vice President HSSE/SD

Shell Downstream Inc

More information at www.shell.com/sustain