Royal Dutch Shell PLC Class A.
RDSA.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. The company operates through various segments, including Integrated Gas, Upstream, Oil ...Show More
Better Health for All
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Shell has implemented extensive health equity programs, including a Community Health Insurance Scheme in Nigeria covering over 114,000 individuals
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and the Health-in-Motion program, which provided free medical services to over one million people.
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During the COVID-19 pandemic, the company demonstrated a strong global health crisis response by donating $10 million to COVAX for vaccine equity
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and over $7.5 million in other aid, including over one million pieces of PPE.
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Preventative health measures, such as immunizations, distribution of mosquito nets, and health advice, were provided to over 87,000 people through its programs.
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Shell also funded $630,000 for air monitors in Beaver County, PA, allowing real-time tracking of air pollution and its health impact near an ethane cracker plant, indicating efforts towards risk transparency.
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However, the company's core operations in oil, gas, and chemicals are associated with significant health-harming externalities, despite efforts to improve environmental performance and integrate health risk into management.
Fair Money & Economic Opportunity
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Shell, through its Foundation and various programs, has engaged in initiatives supporting economic opportunity and financial inclusion. The Shell Foundation, established with a $250 million endowment, focuses on job creation, access to energy, and small enterprise support
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, reporting improved lives for 274.4 million people and leveraging $9.7 billion into clean energy solutions by 2024
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. It partners with organizations like 4R Digital, Accion, M-KOPA Solar, and d.light to provide asset financing and financial services solutions for low-income customers and small enterprises in underserved communities, including East Africa
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,
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. In 2022, Shell invested $260 million in social programs
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, with $92 million directed to countries with a gross national income below $15,000
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, supporting enterprise development. The LiveWIRE program offers training, mentorship, and access to finance for entrepreneurs in rural and underserved communities, leading to 35 business start-ups in Pakistan and 184 female-owned businesses in Saudi Arabia
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. Shell also enabled Nigerian contractors to access over $175 million in loans
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. However, Shell has faced allegations of practices undermining economic fairness. In April 2022, the company was accused of a deceptive pricing scheme at its gas stations, charging higher 'credit' prices for debit card transactions than advertised 'cash' prices
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. In August 2007, Shell faced allegations of predatory business practices in the Wexco case, accused of undermining a small company
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. Earlier, in August 2004, Shell settled with the U.S. SEC for $120 million for overstating its proved hydrocarbon reserves
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Fair Pay & Worker Respect
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In 2023, Shell addressed late salary payments to contractor workers in Nigeria.
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In 2025, Shell and its subsidiary faced allegations of violating the Fair Labor Standards Act by not compensating workers for mandatory pre-shift meetings at eight U.S. facilities, leading to unpaid overtime.
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A 2023 lawsuit accused Shell of gross negligence and premises liability after a fire injured 15 individuals.
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Internal reviews and whistleblower accounts in April 2025 highlighted persistent high-risk problems with oil transfer and firefighting systems on Shell's Bonga vessel, echoing issues from a 2011 spill, and described deteriorating maintenance, resource shortages, and staff concerns.
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Similar safety lapses, including severe corrosion, fires, and health violations, were reported on other Shell-owned vessels globally.
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Earlier investigations and union statements from 2018-2020 revealed issues for contract workers in Nigeria, including poverty wages as low as $137 per month, delayed payments (some for six months), lack of job security, inadequate healthcare, and suppression of unionization efforts, with workers reportedly facing dismissal for attempting to unionize or asking for pay rises.
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Fair Trade & Ethical Sourcing
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The provided articles discuss Shell's general approach to supplier relationships and ethical conduct, including mandating compliance with Shell Supplier Principles
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,
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and a Code of Conduct
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. Shell Polymers is exploring blockchain technology for product tracing, such as lubricants
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. However, the articles do not provide specific, quantifiable data points for any of the KPIs in the Fair Trade & Ethical Sourcing rubric, such as the percentage of spend covered by fair-trade certifications, the average frequency of supplier audits, the number of substantiated forced or child labour incidents, the percentage of suppliers with traceable provenance data, the median days to close corrective action plans, the percentage of contracts with enforceable ethical-sourcing clauses, the share of spend on high-risk materials, or the percentage of procurement budget directed to diverse suppliers.
Honest & Fair Business
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Shell settled a $1.1 billion corruption case in Nigeria in November 2023, which involved allegations of bribing government officials.
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The company also faced allegations of misappropriating confidential intellectual property in September 2024, resulting in confidential settlements.
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As of December 31, 2023, Shell was named in 24 lawsuits in the USA alleging responsibility for climate change impacts, and in February 2023, institutional investors initiated legal action against Shell's board over its climate strategy.
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While Shell has implemented General Business Principles and a Code of Conduct, and provided anti-bribery and corruption training to 131 third-party organizations in 16 countries during 2023, the $1.1 billion corruption settlement suggests significant failures in policy enforcement or due diligence, particularly in high-risk transactions.
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Kind to Animals
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Shell has demonstrated significant efforts in wildlife conservation and habitat restoration. Its partnership with the National Fish and Wildlife Foundation has generated $160 million in conservation impact, protecting 220,000 acres across the US through over 350 projects
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. The company also supported Ducks Unlimited in restoring 250 acres of tidal marsh habitat, benefiting waterfowl and wildlife
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. Shell's Marine & Wildlife Habitat Program has funded 270 projects with almost $15.7 million, protecting over 155,000 acres and enhancing monitoring and management of key species
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. Furthermore, Shell Moerdijk chemical complex implemented a biodiversity action plan to protect nesting bird species
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. In 2023, Shell committed to net-zero deforestation from new activities, with reforestation plans for 292 deforested hectares and biodiversity action plans implemented in 20 new projects to ensure net positive impacts, a significant increase from four in 2022
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No War, No Weapons
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Shell does not directly manufacture weapons or engage in military contracts, indicating no direct revenue from arms or defense contracts
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and no defense business for board oversight
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. Similarly, the company has no direct exposure to controversial or banned weapons
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. However, for the reporting period of January 1 to December 31, 2024, Shell identified that products from Ubitricity, SBRS GmbH, sonnen, and Daystar contain conflict minerals originating in Covered Countries (Democratic Republic of the Congo or adjoining countries) or their origin could not be determined by the supplier
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. While one catalyst supplier sourced exclusively conflict-free material
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and EV charging stations (SRS) had no conflict minerals from Covered Countries
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, the presence of conflict minerals or undetermined origin in multiple other product lines suggests a low percentage of the overall supply chain is verified conflict-free
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. Shell plans to continue raising awareness and managing these risks
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.
Planet-Friendly Business
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Shell reported a 31% reduction in combined Scope 1 and 2 absolute greenhouse gas emissions compared to 2016 levels by 2023.
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By the same year, the company achieved over 60% of its target to halve operational carbon emissions by 2030 from 2016 levels.
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In 2023, Shell invested $7.9 billion in low-carbon energy and non-energy products, which was approximately one-third of its total cash capital expenditure of $24.4 billion.
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This included $5.6 billion in low-carbon energy solutions, representing over 23% of its total capital spending, with 49% of R&D focused on decarbonization.
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Shell acquired Nature Energy, a European renewable natural gas producer, in February 2023
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and increased biofuels blending to 9.7 billion liters worldwide in 2023.
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Its CANSOLV® technology is being implemented in a carbon capture and storage facility in Abu Dhabi, designed to store 1.5 million tonnes of CO₂ annually.
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However, in January 2025, Shell's CEO emphasized the need for green energy ventures to deliver returns
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, following a nearly $500 million loss in its renewables sector for 2024
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, a write-down of US wind farm assets by nearly $1 billion
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, and a decision against building new offshore wind projects.
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In November 2024, Shell won an appeal against a Dutch court ruling that had required a 45% absolute carbon emissions reduction by 2030.
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Investigations also highlight Shell's access to sustainability-linked loans without strict accountability.
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Respect for Cultures & Communities
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Shell has engaged in 3 formal partnership agreements with indigenous or local community groups. These include a reforestation project with the Tŝilhqot'in National Government
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, a cultural restoration project with Quilombola communities
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, and agroforestry support with tribal communities in India
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. The company faced an incident where its seismic survey off South Africa's Wild Coast was opposed due to potential impacts on cultural and spiritual relations with the sea
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, leading to a court ruling in favor of local communities and the suspension of exploration activities
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. Shell also settled lawsuits for $15.5 million regarding alleged human rights abuses against the Ogoni people in the 1990s
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. These instances demonstrate reactive responses to cultural incidents after public pressure and legal action.
Safe & Smart Tech
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Shell's regulatory compliance program has implementation gaps, as some acquired companies are not yet fully compliant with Binding Corporate Rules (BCRs), despite specific actions planned for compliance.
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However, Shell has a comprehensive privacy compliance program based on BCRs
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, with a Chief Privacy Officer serving as the Data Protection Officer under GDPR and other applicable laws.
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The company monitors new data privacy legislation
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and designs operations with privacy requirements
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, incorporating controls into processes that handle personal data.
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Employees receive mandatory data privacy training modules.
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Zero Waste & Sustainable Products
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Shell has set company-wide waste reduction targets, aiming to make all its packaging reusable or recyclable by 2030 and to incorporate 30% recycled plastic in its products by the same year
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. However, the company admitted in its 2023 Sustainability Report that its ambition to convert one million tonnes of plastic waste into pyrolysis oil annually by 2025 is unfeasible
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. Shell has implemented several waste reduction initiatives, including the acquisition of Nature Energy, a producer of renewable natural gas from waste
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. It has also partnered to create a reusable motor oil can for its Helix lubricants as part of a zero-waste scheme, focusing on durability and reusability
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. Additionally, Shell Chemicals Europe signed a cooperation agreement with PreZero for chemical recycling solutions, with a first joint initiative underway in the Netherlands
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. However, construction of a major biofuel plant in Rotterdam, intended to convert waste into aviation fuel, has been paused
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, and two pyrolysis upgrader units, each with a capacity of 50,000 tonnes per year, are under construction but not yet operational
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