Slide 1: Shell Insights Annual ESG Update 2021
© ) | ‘@ SHELL INSIGHTS WwW) ANNUAL ESG UPDATE 2021 Royal Dutch Shell ple April 15, 2021 #PoweringProgress
Slide 2: Board of Directors: Safety, Environment and Sustainability Committee
BOARD OF DIRECTORS SAFETY, ENVIRONMENT AND SUSTAINABILITY COMMITTEE PON yy Sir Nigel Sheinwald Neil Carson OBE Ann Godbehere Catherine J. Hughes Bram Schot Chair Responsibilities = Assist and advise the Board on: Safety Environment Sustainability = Advise Remuneration Committee on sustainability and
Slide 3: The Shell Investment Case
THE SHELL INVESTMENT CASE GENERATING SHAREHOLDER VALUE Growing value through a dynamic portfolio and disciplined capital allocation POWERING PROGRESS Our strategy to accelerate the transition to netzero emissions, purposefully and profitably RESPECTING NATURE Protecting the environment, reducing was
Slide 4: Safety: HSSE Performance
SAFETY HSSE PERFORMANCE Goal Zero on safety Operational spills Injuries (TRCF) per million working hours Million working hours 2 800 ! 400 0 0 2010 2012 2014 2016 2018 2020 —=TRCF fll Working hours (RHS) Upstream flaring Thousand tonnes # of spills 10 250 5 0 ie) 2010 2012 2014 2016 2018 2020 = Numb
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Slide 6: Carbon: Our Carbon Targets
CARBON OUR CARBON TARGETS OUR CLIMATE TARGET NET ZERO BY 2050 FROM 1.7 GTPA TO ZERO Netzero emissions energy business by 2050 Total carbon emissions from energy sold including all emissions (Scopes 1, 2 and 3) peaked in 2018 at around 1.7 Gtpa and will in step with society be brought down to net zer
Slide 7: Carbon: Intensive Customer Collaboration Sector by Sector
CARBON INTENSIVE CUSTOMER COLLABORATION SECTOR BY SECTOR Getting the energy system on a path to net zero will require coordinated action between energy providers, energy users and governments, working together over the next decades to define rapid, realistic, decarbonisation pathways, sector by sect
Slide 8: Carbon: Actions to Support Delivery Through Accountability
CARBON ACTIONS TO SUPPORT DELIVERY THROUGH ACCOUNTABILITY Governance & transparency Accountability Present Energy Transition Strategy for advisory shareholder vote every 3 years from 2021 onwards. Annual advisory shareholder vote on progress. Aligning with external standards Work with the Science Ba
Slide 9: Carbon: Examples of Energy Transition Milestones by 2030
CARBON EXAMPLES OF ENERGY TRANSITION MILESTONES BY 2030 = O) & Operational efficiency! = Eliminating routine flaring = Maintaining methane emissions intensity <0.2% (2025) Natural gas shift = Oil production peaked in 2019, expected to decline 1-2% per annum ® No new frontier exploration entries anti
Slide 10: Powering Lives
POWERING LIVES
Slide 11: Powering Lives
POWERING LIVES THROUGH OUR PRODUCTS AND ACTIVITIES, AND BY SUPPORTING AN INCLUSIVE SOCIETY Our ambition, by 2030, is to provide reliable electricity to 100 million people in Africa and Asia who do not yet have it. We aim to increase racial and ethnic representation across our workforce so that we be
Slide 12: Contributing to a Diverse and Inclusive World
POWERING LIVES CONTRIBUTING TO A DIVERSE AND INCLUSIVE WORLD Gender Shell is working towards gender equality in our workforce. We continue our focus on attracting and developing women because they continue to be underrepresented in parts of our businesses, across a number of our locations and at the
Slide 13: Contributing to a Diverse and Inclusive World - Gender
POWERING LIVES CONTRIBUTING TO A DIVERSE AND INCLUSIVE WORLD - GENDER Our challenges = Women are particularly under-represented in the technical parts of our business at the senior levels, despite balanced representation at graduate level. = Based on 2020 results from the UK, we still see a gender p
Slide 14: Contributing to a Diverse and Inclusive World - Race & Equity
POWERING LIVES CONTRIBUTING TO A DIVERSE AND INCLUSIVE WORLD - RACE & EQUITY Commitments Our actions = Maintain or exceed at least one Board member from an ethnic minority by = In 2020, we created the Shell Diversity and Inclusion Council for Race, 2021 with a goal of then increasing that representa
Slide 15: Ambition to Provide Reliable Electricity to 100 Million People
POWERING LIVES AMBITION TO PROVIDE RELIABLE ELECTRICITY TO 100 MILLION PEOPLE IN AFRICA AND ASIA BY 2030 Focus areas Delivering through PROJECTS od f a RELIABLE POWER FIRST ACCESS ‘ - PORTFOLIO PARTNERSHIPS Improving reliability for residential, Enabling first time access to power for commercial and
Slide 16: Our Approach to Human Rights
POWERING LIVES OUR APPROACH TO HUMAN RIGHTS Labour rights Commitment to human rights Supply chains Focus Shell General Business Principles areas Communities Code of Conduct Security Shell Supplier Principles = Respect for employees’ and contractors’ rights, including freedom from forced labour and n
Slide 17: Working with Our Suppliers to Establish Competitive Supply Chains
POWERING LIVES WORKING WITH OUR SUPPLIERS TO ESTABLISH COMPETITIVE SUPPLY CHAINS THAT ARE SAFE, SUSTAINABLE AND DIGITALLY CONNECTED Q 8 Reducing Making Supporting waste lower-carbon choices people Lower-carbon equipment, Lower-waste supply chains productelandieencices Diverse suppliers a a Tools to
Slide 18: Respecting Nature
RESPECTING NATURE
Slide 19: Protecting the Environment, Reducing Waste and Biodiversity
RESPECTING NATURE PROTECTING THE ENVIRONMENT, REDUCING WASTE AND MAKING A POSITIVE CONTRIBUTION TO BIODIVERSITY = Our new environmental framework focuses on four priority areas, underpinned by collaboration and reporting. ak NK CIRCULAR ECONOMY . AND WASTE = This framework sets out our shorter-term
Slide 20: Conserving Fresh Water by Reducing Consumption
RESPECTING NATURE CONSERVING FRESH WATER BY REDUCING CONSUMPTION AND INCREASING REUSE AND RECYCLING Commitments v -15% BY 2025 = We will reduce the amount of fresh water consumed in our facilities, starting by reducing fresh-water consumption by 15% by 2025 compared with 2018 levels! in areas where
Slide 21: Having a Positive Impact on Biodiversity
RESPECTING NATURE HAVING A POSITIVE IMPACT ON BIODIVERSITY Commitments = Our new projects in areas rich in biodiversity - critical habitats - will have a net positive impact on biodiversity, starting implementation in 2021. = Our nature-based solutions projects, which protect, transform or restore l
Slide 22: Using Resources and Materials Efficiently
RESPECTING NATURE USING RESOURCES AND MATERIALS EFFICIENTLY AND INCREASING REUSE AND RECYCLING Commitments = We are aiming for zero waste by reducing waste generated and increasing reuse and recycling in our businesses and supply chains. We will set goals for waste reduction, reuse and recycling by
Slide 23: Transparency
2P- 4 TRANSPARENCY ves a -
Slide 24: Alignment with Recognised Standards
TRANSPARENCY Shell disclosures against Core ALIGNMENT WITH RECOGNISED STANDARDS Stakeholder Capitalism Metrics are available at www.shell.com OUR PURPOSE: To power progress together by providing more and cleaner energy solutions ACHIEVING UNDERPINNED BY OUR CORE VALUES E IND OUR NET-ZERO POWERING RE
Slide 25: Industry Associations Climate Review 2021
TRANSPARENCY Memberships should not undermine INDUSTRY ASSOCIATIONS Shell’s support for Paris and the global CLIMATE REVIEW 2021 drive to achieve NZE by 2050 = 36 industry associations selected for = Alignment assessed against public Alignment with 28 associations = Report published on 7 April 2021
Slide 26: Active Advocacy and Transparent Tax Reporting
TRANSPARENCY ACTIVE ADVOCACY AND TRANSPARENT TAX REPORTING Le In 2019 Shell paid $61.3 veal Shell is transparent on its KS Shell is actively involved in billion to governments tax payments responsible tax discussions = $7.8 billion corporate income taxes paid = Tax contribution publication and filin
Slide 27: Nigeria
wi e NIGERIA
Slide 28: Shell's Footprint in Nigeria
NIGERIA SHELL’S FOOTPRINT IN NIGERIA Company Main activities Operating assets Shell Petroleum Development Company of Nigeria Limited (SPDC) Shell Nigeria Exploration and Production Company Limited (SNEPCo) Shell Nigeria Gas Limited (SNG) Nigeria Liquefied Natural Gas Company Limited (NLNG) WwW) Roya
Slide 29: Actively Reviewing Operational Response and Portfolio Options for Onshore Oil
NIGERIA ACTIVELY REVIEWING OUR OPERATIONAL RESPONSE AND PORTFOLIO OPTIONS FOR ONSHORE OIL IN NIGERIA = A focused operational response by SPDC JV has resulted in notable improvements on spills in 2020 eo = Despite interventions, sabotage and theft continues = Onshore footprint reduced by 50% since 20
Slide 30: Environmental Performance: Spills
NIGERIA ; ENVIRONMENTAL PERFORMANCE: SPILLS oe IIRC TG EELS SPDC JV spills Environmental management Thousand tonnes # spills ub 200 PREVENTION 5 100 | , i 2011 2012 -2013««2014-«2015.««2016-«2017.-—«2018-=««-2019—=« 2020 New pipeline Wellhead cages Antitamper locks Surveillance Community liaison HE
Slide 31: A Precautionary Approach
NIGERIA A PRECAUTIONARY APPROACH Governance Shell has a systematic approach to the management of health, safety, security, and environmental and social performance. SPDC JV uses the same operating principles in the Niger River Delta as Shell companies across the world. Remediation SPDC JV is remedia
Slide 32: Spill Response
NIGERIA SPILL RESPONSE Clean-up in Bodo Clean-up in Ogoniland = In 2015, SPDC and the Bodo community signed a memorandum of understanding granting SPDC access to start cleaning up areas affected by two operational spills in 2008. = The cleanup process is overseen by an independent body called the Bo
Slide 33: Socio-Economic Contribution
NIGERIA SOCIO-ECONOMIC CONTRIBUTION $6 billion 2,768 $2 billion Shell's contribution Shell employees, of Total spent with to GDP2 which 21% female! Nigeria-based suppliers to support Shell's global business! 187,500 $5.6 billion Jobs supported by taxes paid and Shell business collected!3 activities,
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Slide 35: Changes to Directors' Remuneration for 2021
REMUNERATION CHANGES TO DIRECTORS’ REMUNERATION FOR 2021 Increasing emphasis on financial delivery and measures to support the transition to be a net-zero emissions business by 2050, in step with society Remuneration changes Policy element Changes made Rationale Annual bonus = Weighting on financial
Slide 36: 2021 Scorecard and LTIP Design
REMUNERATION 2021 Scorecard and LTIP design CHANGES TO DIRECTORS’ 2021 SHELL SCORECARD 2021 LTIP PERFORMANCE CONDITIONS REMUNERATION seasures i CE FOR 2021 Absolute measures 40% | Relative measures 60% FINANCIAL Cash flow from operations $ - bn 35% DELIVERY 6 20% ara rt Availabilty - 9 25% OPERATION
Slide 37: Thank you for your interest in Royal Dutch Shell plc
Thank you for your interest in Royal Dutch Shell ple. Please understand that an investment in Royal Dutch Shell ple securities carries with it the risk that you could sustain losses as a result of your investment. Therefore, an investment in Royal Dutch Shell ple securities may not be appropriate fo
Slide 38: Cautionary Note
CAUTIONARY NOTE The companies in which Royal Dutch Shell ple 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 Royal Dutch Shell ple and its subsidiaries in gen