Source:Shell 1

Shell Corporate Social Responsibility Programme

Submitted By:Priyanka AgrawalHarshita ChachanPankaj BaidRashmi Sonare

Source:Shell 2

SHELL

• Global Group • Energy and petrochemical Companies• Headquarters: The Hague, Netherland• CEO: Peter Voser• Parent Company: Royal Dutch Shell plc ( ENGLAND )

SHELL BACKGROUND

Source:Shell 3

Business Operations

• Upstream explores for and extracts crude oil and natural gas.

• Downstream refines, supplies, trades and ships crude worldwide, manufactures and markets a range of products, and produces petrochemicals for industrial customers.

• Projects & Technology manages delivery of Shell’s major projects and drives the research and innovation to create technology solutions.

Source:Shell 4

Corporate Social Responsibility Programme

Source:Shell 5

SHELL FOUNDATION

Established in 2000 Initial endowment of $250 million from Shell Group Annual donations $15 million per yearThe Foundation has six main programmes –Tackling global development and environmental challenges.

Source:Shell 6

Aspire• SME’s in AFRICA• Integrated Business

Development• Assistance and Business Capital

Breathing Space• Tackles “ Indoor Air Pollution”• Partnership with Envirofit --

International, U.S. not-for-profit organisation

Source:Shell 7

EMBARQ• Founded in 2002• Socially, Financially and• Environmentally sound solutions• Public Private Partnership• Eg: Mexico City EXCELERATE• Modern Energy Services to Poor• India and Bangladesh

Source:Shell 8

TRADING UP Provide:• Seed Capital• Business Mentoring• Strategic Partnerships for sustainable supply chain. It connects major retailers

with developing world producer and small businesses.

CLIMATE CHANGE It includes: EMBARQ, EXCELERATE and BREATHING SPACE Reduce Greenhouse Gases

Source:Shell 9

GACC (Global Alliance for Clean Cookstoves )

• Public-private initiative• Set up in 2010• tackle harmful smoke caused by open fires or

inefficient stoves• Committed $6 million over 3 years• Global Ambassador : Julia Roberts

Source:Shell 10

Shell Project Better World

• Sustainable Development Projects

• Partnership with: Earthwatch

Source:Shell 11

SHELL ECO MARATHON

• Design, build and test ultra energy-efficient vehicles

• Annual events : First in the Americas, then Europe and Asia

• The winners are the teams that go the furthest using the least amount of energy.

• 2012: Houston, USA; Rotterdam and Kuala Lumpur

Source:Shell 12

HIV/AIDS Programme

• Medical treatment • Providing education and prevention

programme • Partnership with local and global organization• UNAIDS scenarios development• Global business coalition on Health (GBC

Health)

Source:Shell 13

LiveWire:• Launched in 19 82 • Managed in 21 countries.

Global Road Safety PartnershipRoad Safety MeasuresEU MENA

Source:Shell14

PRODUCED 2% of World Oil

Produce 3% of World Gas

3.2 MILLION

BARRELS OF OIL EQUIVALENTPRODUCED A DAY

OVER 48% OF

PRODUCTION WAS NATURAL GAS

DELIVERED LNG IN

49 VESSELS,

THE WORLD’S LARGEST LNG FLEET

$30.9 BILLION INCOME

$31 BILLION

CAPITAL INVESTMENT$1.1 BILLION

SPENT ON R&D

Source:Shell 15

But at the

COST of………….

Source:Shell 16

80% of this

continuous flaring

6.1 million tonnes

of carbon dioxide, C02,

Oil leak loss of 35,000 barrels

Disrespect for community opinion and

culture

Human Health

Unfair compensation paid

Source:Shell 17

Environmental Degradation of Delta

Loss of livelihood for farmers/fishermen

Polluted water source

Public Health Impacts

Destruction of wildlife habitat

Source:Shell

Environmental Pollution & Degradation & Remediation

Degradation of environment by- natural gas flaring and oil spills

Contaminated the land with oil and brought about the devastation of acid rain to the land.

Natural gas flaring is often generated as a result of oil production and instead of injecting this gas back into the ground;

18

Source:Shell 19

Cont..

Shell routinely burns it off or “flares” it in the fields.

Other Environmental issues include: overfishing, deforestation and loss of biodiversity, water contamination and air pollution from refineries and chemical facilities.

Source:Shell 20

Impacts of Oil

Oil Spills

Destruction of Fisheries

Up to 1.5 million tons of oil have been spilled in this area over the past 50 years, making it one of the most polluted places on the planet

"We never had fish brought in from outside. We had no idea what frozen fish meant. There were rumors that this fish was kept in a mortuary…Today, there is not a single person in my community you could describe as a fisherman. We depend almost totally on frozen fish."

- Isaac Osuoka

Source:Shell 21

Oil spills, clean-ups and compensation

• In 2004, Gulf oil spill incident, company alleging sabotage, spill remained for 3 months.

• Community reported -Urgent need to replacement of Shell’s Pipeline

• Most spills are never properly cleaned up.• People employed on clean-up operations lack the expertise

for bio-remediation and• Clean up operations fall below internationally accepted

standards.• Unfair compensation paid.

Source:Shell 22

Source:Shell 23

Events along the Bomu-Bonny pipeline.

• SPDC handled production maintenance in relation to oil spills.

• Gokana, Ogoni, was set on fire in 2007, still co. continued to pump 180,000 barrels.

• Systemic problem– continuing use of oil pipelines approaching 40 years old;– production so tightly stretched that unacceptable risks are

taken to maintain output;– spill rates that would be totally unacceptable in any other

Shell operation anywhere else in the world

Source:Shell 24

Gas flaring• In 2007, The Nigerian government’s Department of Petroleum

Resources (DPR) stated - 80 % of gas is being flared

• Impacts of flaring– Nigeria is the world’s second largest gas flair spot after

Russia. – Human health is a major casualty. The flares contain a

cocktail of toxins - that leads to • premature deaths, • child respiratory illnesses, • asthma and cancer,

• In 2005 a federal High Court sitting in Benin, Edo State, ordered SPDC to stop gas flaring in Iwherekan community

Source:Shell

Problems/Key Issues• Ken Saro Wiwa

– Death and execution of innocent men for expressing concern for land

• Civil Disturbances for Nigerian Gov’t– $42 million in damages– Shell enlisted the help of the Nigerian authorities and

the Mobile Police Unit “Kill-and-Go Mob”– Continued escalation of violence made it very difficult

for Shell to operate peacefully without military protection

25

Source:Shell

Nigeria Case Analysis• The first thing they had to do was attempt to clean up and

restore the land from all of the degradation the company has caused it.

– Oil pipelines leakage in people’s farmlands and property that caused death to the vegetation and degraded the land.

– Carbon dioxide burning in the air causes serious problems for younger children and leads to asthma.

– Shell Oil Company making millions of dollars a day but still are not providing have not been able to come together to provide costs for the damages they personally created

26

Source:Shell 27

Violation of

Human Rights

Source:Shell 28

Impact on local communities

• Livelihood• Health• Safety• Cultural and community lifestyle• Security, conflict and violence• Economic development

Source:Shell 29

Shell’s acquisition of legal and social licence

• In 1938, Shell D’Arcy, given licence.

• Second leading oil and gas producer in Africa, after Angola.

• The Ogoni welcome Shell without knowing the consequence.

• Oil dominated, accounts for 85% of public revenue.

• The Niger Delta became a vortex of human and environmental rights violations

Source:Shell 30

How Shell lost its social licence?

• Militarisation and absence of conflict mediating mechanisms:– 1990 - a massacre took place in Umuechem, with 80

people reported murdered.

• The arrest, trial and hanging of the Ogoni Nine:– 1995 - hanging of the Ogoni Nine including the Ogoni

leader Ken Saro Wiwa

• Disrespect for community opinion and culture

Source:Shell 31

Lack of benefits and denial of rights:

– Nigerian government officials and Shell promised benefit sharing but communities were left in deepening poverty.

– Nigeria’s Land Use Act of 1978 vests control over and ownership of all lands in the hands of the Federal Government

Source:Shell 32

Trust betrayed:

– Divide-and-rule tactics in Ogoni

– lack of information from the company relating to its activities in the area

– Non- Disclosure of MOU between Shell’s MOU and the Nigerian government

Source:Shell 33

Shell’s Poor Stakeholder Engagement

• EIA compliance and implementation failures :

• The Gbarain-Ubie Integrated Oil and Gas Gathering Project (IOGP), currently SPDC’s largest project.

• Acquisition of land through the 1978 Land Use Act.

• Inaccurate scope and content

• Exclusion of public scrutiny

Source:Shell 34

The Gbarain IOGP impacts negatively

• Such as pressure on existing economic and social infrastructure,

• Decline in incomes from traditional fishing, an increase in water turbidity

• Displacements and distortions in the local economy and social life.

• An increase in the prevalence of sexually transmitted infections especially HIV/AIDS.

Source:Shell 35

MOSOP• The Movement for Survival of Ogoni People (MOSOP) was established in

1990

• Campaign for greater control over oil and gas resources on their land,

• In 1992, MOSOP demanded US$6 billion in royalties from past oil production and US$4 billion for alleged environmental damage,

• SPDC was given 30 days to accept or leave Ogoni land.

• SPDC stopped production in Ogoni land and withdrew from the area in 1993

• In 2008, SPDC was replaced by Nigerian National Petroleum Corporation

Source:Shell 36

Source:Shell 37

Remedies

Source:Shell

What they do for Environment?• Carbon capture and storage (CCS) would be reduced by over 10

billion tonnes of CO2 emissions a year by 2050

• CCS involves capturing CO2 from major industrial plants such as power stations, refineries and chemical plants and storing it safely underground.

• Developed Sulphur Concrete. - Generates 30-50% fewer CO2 emissions compared to the traditional production of concrete.

• Assessing biodiversity• Follow strict operating practices to help preserve areas rich in

biodiversity.38

Source:Shell

Smart Measures• Collaborating with organizations.• HSSE & SP Control Framework• Ship quality Assurance standard• Ensure new products are safe for people and the

environment.• Make test methods as humane as possible.

39

Source:Shell

Some Disclosures• Carbon Disclosure Project• Dow Jones Sustainability Index• FTSE4Good• Goldman Sachs GS SUSTAIN ESG

(environmental, social and governance)

40

Source:Shell 41

Prevention of Oil Spills• The volume of operational spills fell by around 30% in 2011.

• Of 401 sites needed remediation in 2011, 75% were cleaned.

• All of SPDC’s facilities certifies to ISO-14001.

• SPDC’s operation is covered by pipeline and asset surveillance contracts to ensure that spills are discovered and responded quickly.

• In 2010, SPDC paid more than $1.7 million in compensation.

• Cleaning and remediation of spills.

Source:Shell 42

• In Aug 2011, it shut down production of 25,000 barrels/day from Imo River area after repeated attacks on pipelines.

• In Dec 2011, oil leak loss of 35,000 barrels. SNEPCo worked with international oil-spill - Avoiding spill to spread till shore.

• SPDC is implementing a $2 billion programme to install new gas-gathering equipment on reducing flaring.

• As part of on-going asset management programme, SPDC replaced 400 kilometres of pipelines and flow lines

Source:Shell 43

• Over the last five years we have spent $2.3 billion on developing alternative énergies, carbon capture and storage, and on other CO2

R&D.

Source:Shell 44

Safety at work place

• Minimised the injuries during Singapore and Shell Nigeria Exploration and Production Company in 2011.

• Shell Commitment and Policy on HSSE & SP

• Introduction of mandatory 12 Life-Saving Rules in 2009.

• Invested $6 billion in a programme to improve the safety of oil and gas production facilities since 2006.

• In 2011, invested $1 billion in the safety and reliability of refineries, chemical plants and distribution facilities

Source:Shell 45

SHELL INDIA – CSR

“SHELL FOUNDATION, INDIA”

Source:Shell 46

CSR Initiatives in India

• Breathing Space• Trading Up• Excelerate• Embarq

Source:Shell 47

‘My Kitchen, My Pride’

• In 2008 the Foundation was launched in Karnataka to raise Social awareness about the dangers of smoke in the kitchen

• Promote simple measures to reduce smoke inside the house.

• The program reached out to 112 villages in through a combination of on-ground static and interactive activities.

• The campaign to raise awareness about the dangers of kitchen smoke in rural India, especially villages with 5000-20000 populations.

Source:Shell 48

“Breathing space" program

• Giving fuel efficient cooking stoves to families with less than one dollar daily earnings in the states of Maharashtra and Madhya Pradesh.

Source:Shell 49

• Breathing Space tackles the fumes inhaled by people cooking on smoky fires and stoves

• Responsible for a 1.5 million premature deaths worldwide

• Shell Foundation and Envirofit have created a viable, clean cook stove in India and have established new distribution and sales networks to reach rural homes.

• Aim is to give these stoves to some 10 million families spread across 11 states.

Source:Shell 50

“Trading Up”

• Initiative to help farmers to grow organic cotton and sell it in the international market.

• "Trading UP" unlocks markets for producers by providing

– seed capital– business mentoring and – strategic partnerships

with major retailers to create sustainable supply-chains.

Source:Shell 51

• Shell Foundation works with small marginal cotton farmers and has impacted 55,000 farmers across Gujarat, Orissa, Maharashtra and Madhya Pradesh.

• In March 2006, Marks & Spencer became the first major UK retailer to sell products made from Fairtrade cotton.

• In April 2008, Shell Foundation entered a three-way partnership between European retailer C&A and California based experts Organic Exchange.

• Partnership will help farmers by facilitating market access, linkages to capital and providing vital business and technical expertise.

Source:Shell 52

“Excelerate”

• Aims to help small enterprises provide modern energy services for the poor through a combination of direct investments and support of intermediary organizations.

• Provides renewable and affordable lighting source to the poor in rural areas

Source:Shell 53

D.light Design

• In Maharashtra and Uttar Pradesh provides solar lighting solution to families living without electricity.

• Developed solar lanterns which emits ten times more light than a kerosene lamp and provides 32 hours of light.

• Supports the test of innovative strategies to accelerate market creation and penetration at the base of the pyramid.

• Aims at addressing the gap between the demand for modern energy services and the supply of appropriate technologies.

Source:Shell 54

Husk Power Systems (HPS)• In rural Bihar, a rural electrification

company which uses rice husk to produce electricity.

• HPS owns and operates 35-100 kW “mini power-plants” that deliver 8-10 hours of electricity as a pay-for-use service to more than 16, 000 residents per day.

• Shell Foundation is funding Husk Power Systems to increase electrification across the state.

• The fund provided by Shell Foundation has helped increase electrification rates from about 2% to around 95% in the villages of Bihar.

Source:Shell 55

SELCO Solar

• Shell Foundation plans to support a partnership led by SELCO Solar, a social enterprise, with 3 microfinance institutions (MFIs) in two states of India to catalyze the route to market for existing solar technologies in new ways.

• Shell Foundation’s support will create a revolving capital pool to pay for demonstration products offered to consumers on a “try & buy” basis, coupled with training programs and dedicated MFI energy staff.

Source:Shell 56

SEDEMAC Mechatronics

• Supports SEDEMAC Mechatronics, to develop technologies aimed at reducing fuel consumption in small engines and improve efficiency of diesel generator sets.

• Support the speedy dissemination form of widely applicable environment-friendly technologies to combat the problem of air pollution.

Source:Shell 57

“Embarq”

• EMBARQ, the World Resources Institute’s Centre for Sustainable Transport, has been operational in India since 2006

• Works on identifying, testing, evaluating and implementing comprehensive solutions to local transport problems.

• These include Bus Rapid Transport (BRT) systems, bus retrofits, cycling and pedestrian infrastructure, improved public spaces and transport-oriented urban planning measures.

• EMBARQ was set up in 2002, following a restricted tender through which Shell Foundation selected the World Resources Institute as a strategic partner.

Source:Shell 58

“Hazira Group of Companies”

Source:Shell 59

Mangrove Cover• The foundation has established partnership with local institutions to develop mangroves.

• This has resulted in a 1100 ha mangrove plantation (more than 60,00,000 trees) as on December 2010.

• This includes partnership with Gujarat Ecology Commission for 300 ha mangrove plantation.

• The mangrove plantation initiative is supplemented by an overall eco-restoration initiative

• Hazira LNG and Port Companies are also supporting a program on Vulture Conservation in Hazira Peninsula.

Source:Shell 60

Education• Hazira LNG and Port Companies have sponsored 77 local students to

premier vocational institutes in the country

• After successful completion of the course, they all got employment opportunity in various industries including Hazira LNG and Port Companies.

• 108 local students were sponsored for soft skill development with partnership of Gujarat Knowledge Society.

• Supports the Government initiatives on upgradation of Primary Education. • 11 Activity Centers cum Libraries were set up in Hazira peninsula villages

Source:Shell 61

Medicine

• The Hazira Group Companies have also set up a dedicated dispensary for community in early 2003 which has treated more than 125,000 patients till date. In addition, support is also provided to campaigns for Polio Vaccination, HIV-Aids Awareness, TB eradication and other key initiatives of the village institutions and Government.

Source:Shell 62

“Naya Daur”

• Naya Daur, is a Shell Technology India (STI) initiative focuses on imparting basic literacy and life-skills education to the underprivileged workforce.

• Shell Technology India (STI) has initiated various activities at the Shell Bangalore Laboratories (SBL) site to address these challenges.

• This includes Hearts & Minds notices and posters in local languages, Tool Box Talks (TBT), role plays, detailed safety briefings and many others.

Source:Shell 63

“Project Better World”

• Project Better World (PBW) National Team India is a national team member of the Shell Global PBW Team.

• Works with a number of NGO’s in the areas of environmental sustainability, empowering local communities etc.

• PBW India actively participates in rehabilitation of victims in the Karnataka/ Andhra Pradesh floods.

• They actively engage in tree plantation in the neighborhood, participating in the nationwide “Joy of Giving” campaign etc.

Source:Shell 64

“Project Jyoti”

• A drivers' training program aimed at imparting life skills education such as health, investment, child education.

• Shell India - Distribution uses third party contracted tanker trucks to transport fuels from the terminals to its retail outlets

The project has 4 modules :• Improving language skills• Investment planning & banking• Health planning module• Children Education

Source:Shell 65

Thank You