Shell CSR


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  • Live wire:young people explore the option of starting their own business as a real and viable career option. Launched in 1982 in the UK, LiveWIRE is a global Shell programme that is managed nationally in 21 countries. between the ages of 18 and 30. each individual programme is tailored to its host country context and situation.GRSP: work together with stakeholders from government, business and civil society, in order to support the government’s road safety plan.Current partners: Nestle, Honda Toyota
  • Before the discovery of oil region producing agricultural exports received 50% of the revenue generated.
  • Carbon capture and storage (CCS) could be removing 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. This is tougher than traditional concrete and can withstand acidic and salty conditions, making it excellent for sea defenses and waterworks. It also generates 30-50% fewer CO2 emissions compared to the traditional production of concrete.Assessing biodiversity is part of the impact assessments. They perform for any new major project or large expansions to existing operations. This can influence decisions and project design. Follow strict operating practices to help preserve areas rich in biodiversity.
  • By collaborating with organizations around the world, they are able to use expert advice in shaping their efforts to help conserve biodiversity.HSSE & SP Control Framework includes a manual on emergency response that covers their requirements in this area. That includes working with the relevant local and national authorities, ensuring their staff has the appropriate training, and practicing exercise drills with other organizations.Ship quality Assurance standard sets out requirements for the ships we use. To help prevent spills from oil tankers, we require larger ocean vessels to have double hulls. To ensure that new products are safe for people and the environment. They have reduced the number of animals used to test their products, to make test methods as humane as possible, and to replace animal tests wherever possible.
  • If an incident does occur, we act swiftly tominimise its impact. We also investigatesuch incidents to learn lessons that canhelp us improve our safety performance.In 2011, Shell Nigeria Explorationand Production Company (SNEPCo)experienced a major leak offshore duringthe loading of an oil tanker. There was alsoa large 􀆂 re at our Singapore re􀆂 nery and apipeline leak in the North Sea off the UK. Ineach case the rapid and effective responseof staff, working with local authorities,prevented serious injury and limited impacton the environment (see box).We manage safety through rigorousprocesses and by embedding a safetyculture in our daily lives. We have a set ofstandards in place that all our operationsmust follow. They cover the areas of health,safety, security, environment and socialperformance (HSSE & SP). Our globalstandards de􀆂 ne the operational controlsand physical barriers that we require–􀁼for example, in a deep-water well – toprevent incidents. All Shell companies,Shell-operated joint ventures and ourcontractors􀁼must manage safety in line withthe Shell Commitment and Policy on HSSE& SP, local laws and the terms of relevantpermits and approvals.Our safety record has signi􀆂 cantlyimproved since the introduction of ourmandatory 12 Life-Saving Rules in 2009.These focus on the highest risk areas in ourdaily activities, including working safely atheights and not speeding while driving. Allemployees and contractors who work forus must follow them. Road safety (page 27)is one area where these rules have helpedimprove our performance.
  • In 2008 the Foundation launched a pilot project in Karnataka to raise Social awareness about the dangers of smoke in the kitchen and 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 like display of wall posters and wall paintings, mobile van campaigns, flipchart stories, interactive games and street plays. The campaign was a part of a global effort to raise awareness about the dangers of kitchen smoke in rural India, especially villages with 5000-20000 populations
  • The Shell Foundation program, Trading UP acts as a ‘bridging entity’ connecting major retailers with developing world producers and small businesses. The program is market-driven which means it provides major retailers with a tailor-made service that sources products they and their consumers want and offers an win-win solution to the entire value chain.
  • In Maharashtra and Uttar Pradesh, supports D.light Design, a lighting and power company, for providing solar lighting solution to families living without electricity.D.light Design has developed solar lanterns which emits ten times more light than a kerosene lamp and provides 32 hours of light. Shell Foundation is supporting the test of innovative strategies to accelerate market creation and penetration at the base of the pyramid.This aims at addressing the gap between the demand for modern energy services and the supply of appropriate technologies to meet that demand.
  • EMBARQ India’s work coincides with a period of population growth and urbanisation in India that is estimated to see 700 million new residents living in Indian cities by 2050 whose mobility needs will have to be met. Many of the large urban centres in India are already suffering from severe problems arising from traffic congestion. It is estimated that only 28% of them currently have well-organised transit agencies, making the need for a solution all the more pressing.
  • Shell CSR

    1. 1. Shell Corporate Social Responsibility Programme Submitted By: Priyanka Agrawal Harshita Chachan Pankaj Baid Rashmi Sonare Source:Shell 1
    2. 2. SHELL BACKGROUND SHELL• Global Group• Energy and petrochemical Companies• Headquarters: The Hague, Netherland• CEO: Peter Voser• Parent Company: Royal Dutch Shell plc ( ENGLAND ) Source:Shell 2
    3. 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 3
    4. 4. Corporate Social Responsibility Programme Source:Shell 4
    5. 5. SHELL FOUNDATIONEstablished in 2000Initial endowment of $250 million from ShellGroupAnnual donations $15 million per yearThe Foundation has six main programmes –Tackling global development and environmentalchallenges. Source:Shell 5
    6. 6. Aspire• SME’s in AFRICA• Integrated Business Development• Assistance and Business CapitalBreathing Space• Tackles “ Indoor Air Pollution”• Partnership with Envirofit -- International, U.S. not-for- profit organisation Source:Shell 6
    7. 7. EMBARQ• Founded in 2002• Socially, Financially and• Environmentally sound solutions• Public Private Partnership• Eg: Mexico CityEXCELERATE• Modern Energy Services to Poor• India and Bangladesh Source:Shell 7
    8. 8. TRADING UPProvide:• 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 8
    9. 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 9
    10. 10. Shell Project Better World• Sustainable Development Projects• Partnership with: Earthwatch Source:Shell 10
    11. 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 11
    12. 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 12
    13. 13. LiveWire:• Launched in 19 82• Managed in 21 countries.Global Road Safety PartnershipRoad Safety MeasuresEU MENA Source:Shell 13
    15. 15. But at theCOSTof…………. Source:Shell 15
    16. 16. 80% continuous flaring of this Oil leak loss of 35,000 barrels 6.1 million tonnes of carbon dioxide, C02, Disrespect forHuman Health community opinion andUnfair compensation paid culture Source:Shell 16
    17. 17. Environmental Degradation of Delta Loss of livelihood for farmers/fishermen Polluted water source Public Health Impacts Destruction of wildlife habitat Source:Shell 17
    18. 18. 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; Source:Shell 18
    19. 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 19
    20. 20. Impacts of Oil Destruction of Fisheries Oil Spills "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 OsuokaUp to 1.5 million tons of oil havebeen spilled in this area over thepast 50 years, making it one of themost polluted places on the planet Source:Shell 20
    21. 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 21
    22. 22. Source:Shell 22
    23. 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 23
    24. 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 24
    25. 25. 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 Source:Shell 25
    26. 26. 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 Source:Shell 26
    27. 27. Violation ofHuman Rights Source:Shell 27
    28. 28. Impact on local communities• Livelihood• Health• Safety• Cultural and community lifestyle• Security, conflict and violence• Economic development Source:Shell 28
    29. 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 29
    30. 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 30
    31. 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 31
    32. 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 32
    33. 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 33
    34. 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 34
    35. 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 35
    36. 36. Source:Shell 36
    37. 37. Remedies Source:Shell 37
    38. 38. 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. Source:Shell 38
    39. 39. 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. Source:Shell 39
    40. 40. Some Disclosures• Carbon Disclosure Project• Dow Jones Sustainability Index• FTSE4Good• Goldman Sachs GS SUSTAIN ESG (environmental, social and governance) Source:Shell 40
    41. 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 41
    42. 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 42
    43. 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 43
    44. 44. Safety at work • Minimised the injuries during Singapore place 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 Source:Shell 44 plants and distribution facilities
    45. 45. SHELL INDIA – CSR“SHELL FOUNDATION, INDIA” Source:Shell 45
    46. 46. CSR Initiatives in India• Breathing Space• Trading Up• Excelerate• Embarq Source:Shell 46
    47. 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 47
    48. 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 48
    49. 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 49
    50. 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 createsustainable supply-chains.Source:Shell 50
    51. 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 51
    52. 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 52
    53. 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 53
    54. 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 electrificationacross the state.• The fund provided by Shell Foundation has helped increase electrificationrates from about 2% to around 95% in the villages of Bihar. Source:Shell 54
    55. 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 55
    56. 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 56
    57. 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 57
    58. 58. “Hazira Group of Companies” Source:Shell 58
    59. 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 59 Source:Shell
    60. 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 60
    61. 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 61
    62. 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 62
    63. 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 63
    64. 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 64
    65. 65. Thank You Source:Shell 65