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

      Source:Shell   4
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
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
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
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
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
Shell Project Better World

• Sustainable Development
  Projects

• Partnership with: Earthwatch




                      Source:Shell   10
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
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
LiveWire:
• Launched in 19 82
• Managed in 21 countries.




Global Road Safety Partnership
Road Safety Measures
EU MENA



   Source:Shell                  13
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
But
 at the

COST
of………….




 Source:Shell   15
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
Environmental Degradation of Delta




    Loss of livelihood for farmers/fishermen
             Polluted water source
             Public Health Impacts
         Destruction of wildlife habitat
                     Source:Shell              17
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
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
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
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
Source:Shell   22
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
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
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
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
Violation
      of
Human Rights
     Source:Shell   27
Impact on local communities
•   Livelihood
•   Health
•   Safety
•   Cultural and community lifestyle
•   Security, conflict and violence
•   Economic development



                       Source:Shell    28
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
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
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
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
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
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
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
Source:Shell   36
Remedies




  Source:Shell   37
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
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
Some Disclosures
•   Carbon Disclosure Project
•   Dow Jones Sustainability Index
•   FTSE4Good
•   Goldman Sachs GS SUSTAIN ESG
    (environmental, social and governance)




                       Source:Shell
                                             40
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
• 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
• 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
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
SHELL INDIA – CSR

“SHELL FOUNDATION, INDIA”



          Source:Shell      45
CSR Initiatives in India
•   Breathing Space
•   Trading Up
•   Excelerate
•   Embarq




                      Source:Shell   46
‘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
“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
• 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
“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
• 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
“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
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
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
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
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
“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
“Hazira Group of Companies”




           Source:Shell       58
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
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
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
“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
“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
“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
Thank You

   Source:Shell   65

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Shell CSR

  • 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
  • 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
  • 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
  • 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

Editor's Notes

  1. 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
  2. Before the discovery of oil region producing agricultural exports received 50% of the revenue generated.
  3. 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.
  4. 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.
  5. 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.
  6. 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
  7. 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.
  8. 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.
  9. 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.