Slide 1: Shell Insights: Annual ESG Update
SHELL INSIGHTS ANNUAL ESG UPDATE May 10, 2022 POWERING PROGRESS
Slide 2: Definitions and Cautionary Note
DEF I N I T ION S A N D CA U T I ON ARY N OT E The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this presentation "Shell", "Shell Group" and "Group" are sometimes used for convenience where references are made to Shell plc and its subsidiaries
Slide 3: War in Ukraine - Taking Decisive Action
ANNUAL ESG UPDATE 2022 WA R I N UKRA IN E - T A K I N G D ECI S I V E A CT I ON Shell plc | May 10, 2022
Slide 4: The Shell Investment Case: Powering Progress
GENERATING THE SHELL INVESTMENT CASE SHAREHOLDER VALUE Growing value through a dynamic portfolio and disciplined capital allocation POWERING PROGRESS R E S P E C T IN G N A T U R E Our strategy to accelerate the POWERING LIVES Protecting the environment, reducing waste and transition to net-zero emi
Slide 5: Safety, Environment and Sustainability Committee
BOARD OF DIRECTORS S A F ETY, EN V IRONMENT A N D S U S T AI NAB I LI TY COM M I T TEE Chair - Catherine J. Hughes Neil Carson OBE Bram Schot RESPONSIBILITIES PRIORITIES FOR 2022 ◼ Assists the Board in reviewing the policies, practices, targets and performance ◼ Process safety and personal safety wi
Slide 6: 2021 Highlights
ANNUAL ESG UPDATE 2021 H IG HL IG HTS POWERING LIVES RESPECTING FINANCIAL REORGANIZATION SIMPLIFIED NATURE PERFORMANCE STRUCTURE A diverse and inclusive Recognising the growing Providing consistently A smarter, more focused Delivering more value to organization with a 50% urgency and taking strong f
Slide 7: Energy Transition Spend
NON-ENERGY PRODUCTS & DECARBONISATION OF CUSTOMERS EN ERG Y T RA N S ITI ON S P EN D 2021 2021 2022 $55 bln total ~ 2/3rd of $55 bln ~ 1/3rd Energy expenditure in Opex Transition Spend Growth Transition Upstream Opex Capex ET Opex ET Capex Energy Transition Spend: Opex is an important value ◼ Expect
Slide 8: Our Climate Targets
CARBON OU R CL IM A TE T A RG ETS Strategy aligns with goal to limit the increase in Net-zero emissions energy business by 2050 We believe Shell’s total carbon emissions from the global average temperature to 1.5 degrees including all emissions (Scopes 1, 2 and 3) energy sold peaked in 2018 at aroun
Slide 9: Reducing Net Carbon Intensity and Net Absolute Emissions
CARBON RED U CIN G N ET CA RB ON I N T EN S I TY A N D N ET A B S OLUT E EM I S SI ON S Decarbonising our operations and helping our customers meet their changing energy needs Net Carbon Intensity (Scope 1, 2 and 3) Absolute emissions (Scope 1 and 2 ) gCO2e/MJ mtpa CO2e -20% -50% -2.5% -18.1% 79 83
Slide 10: 2021 Progress on Our Path to Net Zero
CARBON Significant progress outlined in 2021 P ROG RESS ON OU R P A T H T O N ET Z ERO the 2021 Energy Transition Progress Report for advisory vote Net carbon intensity Net carbon emissions Net total emissions Covers emissions associated with the production, processing, Covers all Scope 1 and 2 emis
Slide 11: Changing Demand Across Sectors
SECTORAL DECARBONISATION Various parties play CH A N G IN G DEM AN D A CROS S S ECT ORS a role in decarbonising a sector International coordination Shell is working with various sector players, and with Supply policymakers, to increase ambition around reducing emissions, and better enable changes to
Slide 12: 2022 AGM: Voting on Progress on Our Strategy
2022 A G M : V OT IN G ON P ROG RESS ON OU R S T RAT EG Y RESOLUTION 20 - FOR RESOLUTION 21 - AGAINST Shell’s Energy Transition resolution Shareholder resolution by Follow This Delivering on the energy transition strategy supported Proposing a new strategy by 89% of our shareholders that limits Shel
Slide 13: Directors' Remuneration for 2022
REMUNERATION 2022 Scorecard and LTIP design DIRECTORS’ 2022 SHELL SCORECARD (changes from 2021 highlighted) 2022 LTIP PERFORMANCE CONDITIONS REMUNERATION FOR 2022 Measures Unit Weighting Absolute measures 40% Relative measures 60% FINANCIAL Cash flow from operations $ DELIVERY 35% 20% 20% Asset mana
Slide 14: Actively Reviewing Operational Response and Portfolio Options for Onshore Oil in Nigeria
NIGERIA A CT I V ELY REV IEWI N G OU R OP ERA TI ONAL RES P ON SE A N D PORT F OLIO OPT ION S F OR ON S H ORE OI L I N N I G ERI A ◼ Shell has been in discussion with the Nigerian government to review options regarding the future of our onshore portfolio. ◼ Shell intends to continue to develop and i
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