Master Of Science In Operational Maritime Management
The Royal Dutch Shell Group was a merger between the Royal Dutch and Shell Transport and Trading in 1907, fast forward to over a century with innovation, diversification and advancement in technology Shell Global was formulated. Shell Global is a collection of energy and petrochemical companies operating globally in more than 70 countries. Shell Global sustainable development focus on challenges that affect the company performance and matter most to key shareholders. Shell has reported that since 1997 voluntary reports on environmental and social performance has been made. Reports are done honestly, openly to building trust and improving the company environmental and social performance.
Shell Global Sustainable Development Goals
Sustainable Development Goals (SDG) are relevant to all Shell’s operation, but at varying degrees. A review of Shell’s SDG report 2017 have particular significance to Shell across their global business. Shell SDG reports that their operations are to help shape a more sustainable energy future, sharing wider benefits where they operate and they strive to run a safe, efficient, responsible and profitable business. Based on Shell’s report the most relevant sustainable development goals are: ensure access to affordable, reliable, sustainable and modern energy (7), decent work and economic growth (8), responsible production and consumption (12), climate action (13) and partnerships for the goal (17). These selections are relevant to Shell because they strive to achieve a robust economy which creates a healthier quality of life for all within the ecological limits of earth. This can also be used as a stepping stone to link economic, environmental and social considerations of sustainable development to a green economy. Investing in environmentally friendly and socially equitable solutions achieves long-term economic development.
Green Economy Strategies
An economy that bring about improvement to human well-being and social equity, while significantly reducing ecological scarcities and environmental risks is considered to be a green economy. The following discuss how green economy strategies within Shell in relation to the five SDG’s selected. The access of energy plays an important role in achieving ensure access to affordable, reliable, sustainable and modern energy sustainable development goal (7). Affordable and clean energy enables economic and social development, while improving health, education and quality of life around the world. In an effort to make energy accessible Shell has used New Energies (the use of Shell’s experience in lower-carbon technology while exploring new commercial models that focuses on the world’s energy transition) business which purses commercial opportunities to provide energy to those with limited access.
An example in the implementation of this SDG is Shell collaborating with non-profit organizations in Myanmar to provide access to sustainable energy for approximately 20,000 persons. Decent work and economic growth (8) Shell operation consider qualified and skilled people living near their operations. This is achieved by providing direct employment opportunities, encourage local business as part of Shell’s supply chain, liaising with government and others such as technical institutes to offer training with the aim in building local skills and expertise. Shell understands that employment is a critical route out of poverty and towards prosperity, while providing jobs their continued aim is to follow labour, health and safety standards. Entrepreneurs are gladly welcomed, supported and encouraged in Shell through programs that support enterprise development, one such program is called Shell LiveWIRE. Responsible production and consumption (12) are observed in Shell’s effort to protect the environment and respect for their neighbours. Protecting the environment is achieved by setting high environmental standards and following safety procedures is mandatory as a way to avoid harm to people. Focus on managing their greenhouse gas (GHG) emissions, minimizing their fresh water usage, conserving biodiversity and preventing spills and leaks. Investments in a range of lower-carbon technologies, fuels and continued work on improving the energy efficiency of their fuels and lubricants.
Climate change affects everyone and all industries, climate action (13) as SDG for Shell is a way to seek cost-effective ways to manage GHG emissions while seeking potential business opportunities in developing solutions, and supporting the Paris Agreement goal (keeping global temperature rise down by two degrees Celsius). Green economy strategy adopted by Shell to help reduce global GHG emissions are progressing CCS (Carbon Capture and Storage) technologies, replacement of coal with natural gas for power generation, new fuels develop for transport such as advanced biofuels and hydrogen and focusing on natural gas and renewable electricity while participating throughout the power value chain. Shell’s Sustainability Report (2017) stated that participating throughout the power value chain is supported by continued advocation of the introduction of effective government-led carbon pricing mechanism. Partnerships for the goal (17) is a way to reduce environmental and social impact. Shell works with governments, academics, industry specialist and partner with companies and organizations around the world to meet the world’s growing energy demand. By sharing ideas and expertise Shell helps to encourage innovation. Working with others help reduce the impact on people (socially) and the environment, while improving the quality of local communities where operations are taking place and nature around operations. Figure 1 (see appendix) shows social and environmental partners that Shell currently work with to improve the quality of land and water around operations. These partnerships are essential to help improve safety and environmental standards.
Possible Challenges
Recently Shell has been faced with partners issues due to lack of transparency as stated in the Guardian (UK edition) 2018. This issue has been bought up due to growing concern of climate change and Shell not reaching targets as per goals outlines in the Paris climate deal. Another challenge that Shell face is its Nigeria operations. Given the negative impression Shell has made because of operations plagued by military dictatorship it still chooses to operate despite lack of support of responsible production and consumption and conflict caused by partnerships. Shell’s Alaskan oil campaign has sparked outrage with shareholders due to regulatory and environmental uncertainties with their operations causing the campaign to be shut down. Also, Shell’s Port Arthur Motiva oil refinery even after recent expansion has be plagued with several mishaps, including a fire. It was only recently re-opened, after further operational issues were corrected. From all the challenges outlined it can be seen that Shell has been faced with it’s fair share of misfortune and bad decision making, which leads to challenges that hinder all SDG’s discussed previously. These challenges impact environmental, social and human well-being when implementing green economy strategies while trying to achieve sustainable development goals in Shell’s operation.
