Royal Dutch Shell plc.
RDSB.LSE | Extraction of crude petroleum
Royal Dutch Shell plc, now known as Shell plc, is a global energy company involved in the exploration, production, refining, and marketing of oil and natural gas, and the manufacturing and marketing of chemicals. Shell operates through various segments, including Integrated Gas, Upstream, Oil Produc...Show More
Better Health for All
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Shell's principal goods and services, including oil, natural gas, and chemicals, are linked to severe and widespread negative health impacts. Operations in Nigeria's Niger Delta have caused severe environmental degradation, with a UNEP report in 2024 citing benzene levels 900 times above limits, leading to respiratory problems and increased cancer rates among locals
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. Oil spills and gas flaring have contaminated water and air, causing health issues in these communities
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. In February 2025, communities sued Shell for pollution-related health impacts
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, and a Dutch court previously ordered Shell to compensate communities and prevent future spills in January 2021, indicating inadequate remediation
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. Explosions at Shell's Norco facility in 1973 and 1988 resulted in fatalities and long-term health issues for locals
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, with the 1988 explosion releasing 159 million pounds of chemical waste, causing respiratory problems and increased cancer rates
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. The company's business activities do not involve health-related products requiring pricing accessibility, healthcare-related patents, food products, addiction potential mitigation, or clinical trials. During the COVID-19 pandemic in 2020, Shell provided free fuel to healthcare providers and produced isopropyl alcohol for sanitizers
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. In 2011, its 'Health in Motion' program offered medical services to over 87,000 people in remote Nigerian areas, including treatments, surgeries, and mosquito nets
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Fair Money & Economic Opportunity
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Shell's core business is in the energy sector, not financial services. While the company engages in initiatives that support economic opportunity and entrepreneurship, the provided articles do not contain the specific quantitative data points required by the rubric's KPIs. For instance, there is no information on the percentage of total customers from underserved segments, average APRs or fee structures, share of revenue from high-cost products, or the share of a total loan book dedicated to inclusion initiatives. Similarly, metrics related to customer credit outcomes, profit reinvestment as a percentage of pre-tax profit, or the reach and impact of financial literacy programs are not provided. Therefore, no KPIs can be scored based on the available evidence.
Fair Pay & Worker Respect
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In 2023, the company recorded 254 confirmed breaches of its Code of Conduct
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, resulting in disciplinary action for 278 employees or contractor staff and 66 dismissals
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. During the same year, late payments to contractor workers in Nigeria were remedied
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. The Total Recordable Case Frequency (TRCF) was 1.1 per million working hours in 2023
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, however, there were 5 contractor fatalities
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. The CEO to median employee pay ratio was 58:1 in 2023
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. The average employee engagement score was 79%
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. Voluntary employee turnover was 3.3%
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. In the UK, the average ethnicity pay gap was up to 21.4%
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, and the average gender pay gap was up to 18.7% in 2023
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Fair Trade & Ethical Sourcing
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Shell reported zero specific incidents of forced or child labor in its 2023 Sustainability Report
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and its 2025 UK Modern Slavery Act statement for the financial year ending 2024.
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The company has procedures in place in 100% of countries where it operates to address child labor in its own operations, among contractors, and suppliers.
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Shell also takes a risk-based approach to assessing suppliers, using external indices to identify modern slavery risks and requiring mitigation actions.
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In 2023, Shell spent 83% of its procurement budget on goods and services from suppliers based in the same country of operation.
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Additionally, 12% of its spend was in low-income countries, with 90% of that amount directed to local suppliers.
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Honest & Fair Business
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Shell has whistleblower protection policies, including a Global Helpline. In 2023, the company received 2,134 reports through this helpline
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. These reports led to the confirmation of 254 breaches of its Code of Conduct
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, resulting in 278 disciplinary actions and 66 dismissals
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.
Kind to Animals
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Shell used 70,882 vertebrates in toxicity tests in 2024.
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, with an increase primarily due to new effluent testing regulatory requirements in North America
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. In 2024, 18,926 animals were used in consortia studies, with Shell's share being about 14%.
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Non-fish vertebrates made up 28% of all vertebrate testing in 2024.
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Shell has a robust animal testing policy based on the 4Rs principles (Replacement, Reduction, Refinement, Responsibility).
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This policy includes an internal justification and approval process for any study involving vertebrates (excluding permit-mandated effluent biomonitoring) and is reviewed twice a year by an external Animal Welfare Panel.
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The company has voluntarily reported on its animal testing activities for over 20 years.
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Shell is actively developing and using New Approach Methodologies (NAMs), including in silico tools and in vitro approaches like fish cell tests (OECD Test No. 249).
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These NAMs are widely used across its science disciplines to improve testing for complex petroleum substances.
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Shell collaborates extensively with academia, government, and industry on developing new test methods.
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, including partnerships on the Virtual Human Platform for Safety Assessment (VHP4Safety)
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and organizing a 2023 workshop for the Health and Environmental Sciences Institute’s Substances of unknown or variable composition, complex reaction products or biological materials (UVCB) committee
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. The company also collaborates on the European Commission Roadmap on phasing out animal testing
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and participates in Cefic NAMs Workgroup and ECETOC/Cefic LRI
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. Shell advocates for reducing animal use in safety assessments with regulatory bodies like ECHA
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, successfully contesting an ECHA decision that reduced testing requirements by approximately 10,000 animals
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. The company also advises the Danish Ministry of Research and the EU Commission on advancing regulatory frameworks for chemical safety.
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No War, No Weapons
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Shell admitted breaking U.N. sanctions by supplying Rhodesia via South African subsidiaries in 1979.
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There is also evidence that a Shell terminal was used as a staging post for the delivery of weapons and munitions to Iran and Iraq.
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The company uses private intelligence firms and internal security units to monitor critics.
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An article alleges that a Shell terminal stored conventional ammunition and tactical nuclear weapons.
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For EV charge points, 100% of conflict minerals originated in conflict-affected countries.
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For other product lines like charging solutions, battery storage systems, and solar power equipment, a high percentage of conflict minerals similarly originated in conflict-affected countries or their origin could not be determined by suppliers.
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Planet-Friendly Business
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In 2024, Shell's total Scope 1, 2, and 3 greenhouse gas emissions were 1.158 billion tCO₂e.
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The company's capital expenditure on oil and gas businesses topped £14 billion in 2024, while spending on renewables and energy solutions was just over £2 billion, a 5% reduction from the previous year.
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This means oil and gas spending eclipsed renewables spending by more than seven times in 2024, with approximately 12.5% of capital expenditure directed towards renewables and energy solutions.
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Operations in the Niger Delta have caused significant environmental damage, including contaminated water sources from oil spills, and activists allege the company is attempting to avoid its environmental responsibilities in the deeply polluted region, disproportionately burdening vulnerable communities.
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Respect for Cultures & Communities
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Shell demonstrates strong local employment, with 96% of its employees in Nigeria being Nigerian in 2023
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, and 89% of employees at its Sarawak, Malaysia plant being from Sarawak state in 2019
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. The company also prioritizes local procurement, with 83% of its 2023 spending on goods and services directed to suppliers in the same country of operation
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. For cultural site protection, Shell commits to not exploring or developing resources in natural and mixed World Heritage Sites
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. It actively works to identify and protect archaeological sites, such as in Iraq
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, and preserved slave cemeteries in Louisiana in 2018
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, with no reported incidents of disruption to cultural or heritage sites. Community feedback mechanisms are implemented at all operations and projects
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, and a Global Helpline is available in 14 languages for various stakeholders
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. However, an affiliate requested contract annulments after reports of violating Indigenous communities' rights by pressuring them to sign carbon credit contracts without full understanding between 2021 and 2023
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Safe & Smart Tech
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Shell experienced multiple data breaches within the last three years, including a 2024 incident affecting 80,000 individuals via a third-party vendor
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, and was impacted by the Accellion FTA breach in 2021
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, which involved unauthorized access to files containing personal data
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. In 2023, Shell also notified data privacy regulators of personal data breaches
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. Shell responded to these incidents by addressing vulnerabilities
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, launching investigations
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, and contacting regulators
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. The company has a mature privacy compliance program based on Binding Corporate Rules (BCRs)
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and a Chief Privacy Officer who serves as the Data Protection Officer under GDPR
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. Shell monitors new privacy legislation
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and has a Group-wide incident management process
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. However, some newly acquired companies are not yet fully compliant with Shell's BCRs
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Zero Waste & Sustainable Products
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Shell received 11 notices of violation pertaining to air quality from the Pennsylvania Department of Environmental Protection in 2023, resulting in a $4.9 million civil penalty.
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The company also faced a $19.5 million hazardous waste violation in 2009
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and a $29.5 million settlement for historical petroleum refinery waste disposal.
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In 2023, Shell disposed of 631 thousand tonnes of hazardous waste, a 28% reduction from 878 thousand tonnes in 2022.
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The company diverted 29.05% of its total waste from landfill in 2023.
Shell aims by 2030 to increase recycled plastic in its branded packaging to 30% and ensure packaging is reusable or recyclable.
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In 2023, 19% of plastic packaging for Shell-branded car care, food, and drink products globally was made from post-consumer recycled material, with 31% for Car Care packaging in Europe.
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90% of Shell Car Care packaging in Europe was recyclable in 2023.
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Waste reduction initiatives include bag-in-box lubricants using 89% less plastic, jerrycans with 27% less plastic, and investments in pyrolysis units with capacities up to 50,000 tonnes per year.
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Standard contract terms require suppliers to minimize waste.
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The company conducted 24 waste and circularity assessments in 2021 and 2022.
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