CSR by Shell Corporation

1. Shell Corporate Social Responsibility
Programme
Submitted By:
Priyanka Agrawal
Harshita Chachan
Pankaj Baid
Rashmi Sonare
Source:Shell 1

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. 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. Corporate Social
Responsibility
Programme
Source:Shell 4

5. SHELL FOUNDATION
Established in 2000
Initial endowment of $250 million from Shell
Group
Annual donations $15 million per year
The Foundation has six main programmes –
Tackling global development and environmental
challenges.
Source:Shell 5

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 6

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 7

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 8

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. Shell Project Better World
• Sustainable Development
Projects
• Partnership with: Earthwatch
Source:Shell 10

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. 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. LiveWire:
• Launched in 19 82
• Managed in 21 countries.
Global Road Safety Partnership
Road Safety Measures
EU MENA
Source:Shell 13

14. PRODUCED 2% 3.2 MILLION
BARRELS OF OIL EQUIVALENT
of World Oil PRODUCED A DAY
OVER 48% OF
PRODUCTION WAS NATURAL GAS
$30.9
BILLION INCOME
DELIVERED LNG IN
Produce 3% 49
of World Gas
VESSELS,
THE WORLD’S LARGEST
$31 BILLION
$ 1.1 BILLION
LNG FLEET CAPITAL INVESTMENT
SPENT ON R&D
Source:Shell
14

15. But
at the
COST
of………….
Source:Shell 15

16. 80%
continuous flaring
of this Oil leak loss of 35,000
barrels
6.1 million tonnes
of carbon dioxide, C02,
Disrespect for
Human Health community
opinion and
Unfair compensation paid culture
Source:Shell 16

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. 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. 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. 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 Osuoka
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
Source:Shell 20

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. Source:Shell 22

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. 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. 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. 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. Violation
of
Human Rights
Source:Shell 27

28. Impact on local communities
• Livelihood
• Health
• Safety
• Cultural and community lifestyle
• Security, conflict and violence
• Economic development
Source:Shell 28

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. 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. 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. 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. 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. 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. 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. Source:Shell 36

37. Remedies
Source:Shell 37

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. 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. Some Disclosures
• Carbon Disclosure Project
• Dow Jones Sustainability Index
• FTSE4Good
• Goldman Sachs GS SUSTAIN ESG
(environmental, social and governance)
Source:Shell
40

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. • 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. • 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. 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. SHELL INDIA – CSR
“SHELL FOUNDATION, INDIA”
Source:Shell 45

46. CSR Initiatives in India
• Breathing Space
• Trading Up
• Excelerate
• Embarq
Source:Shell 46

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. “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. • 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. “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 50

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. “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. 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. 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 54

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. 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. “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. “Hazira Group of Companies”
Source:Shell 58

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. 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. 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. “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. “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. “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. Thank You
Source:Shell 65