Si Report Case Study Royal Dutch Shell

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Royal Dutch Shell (Shell) is a worldwide group of oil, gas and petrochemical companies that explores for, produces and trades in a range of energy resources. Royal Dutch Shell also has a broad portfolio of hydrogen, biofuels, wind and solar power interests, and also provides consultancy and technical services as well as research and development expertise to the energy industry. Royal Dutch Shell is active in more than 130 countries and territories, and employs 108,000 people worldwide. Governance Shell’s Business Principles guide the company's operations: • Economic • Health, Safety, Security and the Environment • Competition • Local Communities • Business Integrity • Communication and Engagement • Political Activities • Compliance They include a commitment to contribute to sustainable development and to respect human rights. The Shell Board of Directors is responsible for the Group’s performance, and Board Committees assist in their respective governance responsibilities. The Social Responsibility Committee reviews the policies and conduct of Shell with respect to the Business Principles as well as the Group’s health, safety and environment (HSE) policy and other relevant Group policies and standards. This committee is composed of non-executive directors. The Chief Executive is responsible for sustainable development (SD). On his behalf, the Corporate Affairs Director chairs the Group Sustainable Development and Health, Safety and Environment (HSE) Executive. Its members are the executives responsible for social performance, HSE and security in each business and the company-wide head of these functions. The Committee reviews performance and sets priorities, key performance indicators and targets. An SD/HSE Panel supports the SD/HSE Executive. It is composed of senior functional experts from each major Business and the corporate centre. Country Chairs – the most senior Shell representative in a country or cluster of countries - are responsible for ensuring application of policies and codes of conduct in a country or group of countries. All Country Chairs must write an annual letter to the executive Board member responsible for their region on issues relating to the Business Principles. A Business Integrity Advisor reviews the letters of assurance and advises both the Country Chair and the Managing Director. Shell also has a Chief Ethics and Compliance Officer. Shell’s different businesses – Exploration and Production, Gas and Power, Oil Product and Chemicals, Renewables- have SD support. For example, SD is built into the portfolio of the Corporate Support Executive Vice President, Exploration and Production. Integrating SD into existing governance structures helps to better ensure SD considerations are factored into decision-making processes. In 2005, the existing Executive Vice President, Renewables and Hydrogen, took on the additional role of Executive Vice President, CO2. This position reports directly to the Executive Director, Gas and Power, who is also a Board member and is responsible for the delivery of the Group CO2 strategy and supporting technologies. The CO2 Group is responsible for the development and deployment of CO2 mitigation technologies and the Group CO2 strategy. The Group measures its performance through a number of key performance indicators. The Group Scorecard highlights four key performance factors that together provide a summarized overview of the Group’s performance – SD Royal Dutch Shell – Sustainability Integration Case Study 1

accounts for 20% of the scorecard rating. Business Processes Strategic Planning: Shell uses global scenarios to cast light on the context in which the Group operates, to identify emerging challenges and to foster adaptability to change. These scenarios are used to help review and assess strategy. Sustainable development considerations are built into these scenarios. Shell-wide scenarios looking out 25 years are run every two-three...
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