UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or (g) OF THE SECURITIES EXCHANGE ACT OF 1934
☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2021
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 001-32575
(Exact name of registrant as specified in its charter)
England and Wales
(Jurisdiction of incorporation or organization)
London, SE1 7NA
(Address of principal executive offices)
Linda M. Coulter, Company Secretary
London, SE1 7NA
Telephone Number: 0044-20-7934-1234
E-mail Address: email@example.com
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered pursuant to Section 12(b) of the Act
|Title of Each Class||Trading Symbols||Name of Each Exchange on Which Registered|
|American Depositary Shares representing two ordinary shares|
of the issuer with a nominal value of €0.07 each
|SHEL||New York Stock Exchange|
|0.375% Guaranteed Notes due 2023||SHEL/23B||New York Stock Exchange|
|3.5% Guaranteed Notes due 2023||SHEL/23||New York Stock Exchange|
|Floating Rate Guaranteed Notes due 2023||SHEL/23A||New York Stock Exchange|
|2% Guaranteed Notes due 2024||SHEL/24||New York Stock Exchange|
|3.25% Guaranteed Notes due 2025||SHEL/25||New York Stock Exchange|
|2.5% Guaranteed Notes due 2026||SHEL/26||New York Stock Exchange|
|2.875% Guaranteed Notes due 2026||SHEL/26A||New York Stock Exchange|
|3.875% Guaranteed Notes due 2028||SHEL/28||New York Stock Exchange|
|2.375% Guaranteed Notes due 2029||SHEL/29||New York Stock Exchange|
|2.75% Guaranteed Notes due 2030||SHEL/30||New York Stock Exchange|
|4.125% Guaranteed Notes due 2035||SHEL/35||New York Stock Exchange|
|6.375% Guaranteed Notes due 2038||SHEL/38||New York Stock Exchange|
|5.5% Guaranteed Notes due 2040||SHEL/40||New York Stock Exchange|
|2.875% Guaranteed Notes due 2041||SHEL/41||New York Stock Exchange|
|3.625% Guaranteed Notes due 2042||SHEL/42||New York Stock Exchange|
|4.55% Guaranteed Notes due 2043||SHEL/43||New York Stock Exchange|
|4.375% Guaranteed Notes due 2045||SHEL/45||New York Stock Exchange|
|3.75% Guaranteed Notes due 2046||SHEL/46||New York Stock Exchange|
|4.00% Guaranteed Notes due 2046||SHEL/46A||New York Stock Exchange|
|3.125% Guaranteed Notes due 2049||SHEL/49||New York Stock Exchange|
|3.25% Guaranteed Notes due 2050||SHEL/50||New York Stock Exchange|
|3.00% Guaranteed Notes due 2051||SHEL/51||New York Stock Exchange|
Securities registered pursuant to Section 12(g) of the Act: none
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: none
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.
Outstanding as of December 31, 2021:
4,101,239,499 A ordinary shares with a nominal value of €0.07 each.
3,582,892,954 B ordinary shares with a nominal value of €0.07 each.
|Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.||þ||Yes||☐||No|
|If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.||☐||Yes||þ||No|
|Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.||þ||Yes||☐||No|
|Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).||þ||Yes||☐||No|
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company.
See definition of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
|Large accelerated filer||þ||Accelerated filer||☐||Non-accelerated filer||☐|
|Emerging growth company||☐|
|If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act.||☐|
† The term “new or revised financial accounting standards” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
|Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment on the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issues its audit report.||þ|
|Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:||U.S. GAAP||☐|
International Financial Reporting Standards as issued by the International Accounting Standards Board.
|If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.||Item 17||☐||Item 18 ||☐|
|If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).||☐||Yes||þ||No|
Copies of notices and communications from the Securities and Exchange Commission should be sent to:
London, SE1 7NA
Attn: Linda M. Coulter
|Cross reference to Form 20-F|
|Terms and abbreviations|
|About this Report|
|Shell Powering Progress|
|Strategy and outlook|
|Summary of results|
|Liquidity and capital resources|
|Oil and gas information|
|Climate change and energy transition|
|Environment and society|
|The Board of Shell plc|
|Nomination and Succession Committee|
|Safety, Environment and Sustainability Committee|
|Audit Committee Report|
|Directors' Remuneration Report|
|Annual Report on Remuneration|
|Directors' Remuneration Policy|
Report of Independent Registered Public Accounting Firm (ID: 13020134)
|Consolidated Statement of Income|
|Consolidated Statement of Comprehensive Income|
|Consolidated Balance Sheet|
|Consolidated Statement of Changes in Equity|
|Consolidated Statement of Cash Flows|
|Notes to the Consolidated Financial Statements|
1.Basis of preparation
2.Significant accounting policies, judgements and estimates
3.Changes to IFRS not yet adopted
4.Climate change and energy transition
6.Interest and other income
9.Property, plant and equipment
10.Joint ventures and associates
11.Investments in securities
12.Trade and other receivables
14.Cash and cash equivalents
15.Debt and lease arrangements
16.Trade and other payables
19.Decommissioning and other provisions
22.Share-based compensation plans and shares held in trust
25.Earnings per share
26.Legal proceedings and other contingencies
28.Directors and Senior Management
30.Non-current assets held for sale
31.Emission schemes and related environmental plans
32.Post-balance sheet events
|Supplementary information - oil and gas (unaudited)|
|Supplementary information - EU Taxonomy disclosure|
|Report of Independent Registered Public Accounting Firm (ID: 13020134)|
|Statement of Income|
|Statement of Comprehensive Income|
|Statement of Changes in Equity|
|Statement of Cash Flows|
|Notes to the RDS Dividend Access Trust Financial Statements|
2.Basis of preparation
3.Significant accounting policies
|Section 13(r) of the US Securities Exchange Act of 1934 disclosure|
|Non-GAAP measures reconciliations|
|Index to the exhibits|
|CROSS REFERENCE TO FORM 20-F|
|Item 1.||Identity of Directors, Senior Management and Advisers||N/A|
|Item 2.||Offer Statistics and Expected Timetable||N/A|
|Item 3.||Key Information|
|B.||Capitalization and indebtedness||N/A|
|C.||Reasons for the offer and use of proceeds||N/A|
|Item 4.||Information on the Company|
|A.||History and development of the company||11,12-13, 16-21, 32-33, 36-39, 43-54, 63-72, 285, 292-296|
|B.||Business overview||12-33, 43-72, 97-111, 261-281, 286|
|C.||Organizational structure||15-17, Exhibit 8.1|
|D.||Property, plants and equipment||15-17, 22-33, 43-72, 97-111, 261-278|
|Item 4A.||Unresolved Staff Comments||N/A|
|Item 5.||Operating and Financial Review and Prospects|
|A.||Operating results||22-39, 43-72, 245-250|
|B.||Liquidity and capital resources||25, 32-33, 36-39, 43-44, 48-49, 63-64, 69-70, 72, 213-214, 231-236, 238-243|
|C.||Research and development, patents and licences, etc.||203, 208|
|D.||Trend information||22-54, 63-67, 69-71, 73-111|
|E.||Critical Accounting Estimates||N/A|
|Item 6.||Directors, Senior Management and Employees|
|A.||Directors and senior management||118-126, 189-191|
|B.||Compensation||161-167, 173, 177, 185-186, 257|
|C.||Board practices||118-177, 188-195|
|E.||Share ownership||117, 170, 189, 251, 286|
|Item 7.||Major Shareholders and Related Party Transactions|
|A.||Major shareholders||287 |
|B.||Related party transactions||188, 211, 231, 257, 285|
|C.||Interests of experts and counsel||N/A|
|Item 8.||Financial Information|
|A.||Consolidated Statements and Other Financial Information||36-39, 196-260, 282-285|
|B.||Significant Changes||260, 285|
|Item 9.||The Offer and Listing|
|A.||Offer and listing details||188-194, 283-285|
|B.||Plan of distribution||N/A|
|F.||Expenses of the issue||N/A|
|Item 10.||Additional Information|
|B.||Memorandum and articles of association||190-195|
|D.||Exchange controls||290 |
|F.||Dividends and paying agents||N/A|
|G.||Statement by experts||N/A|
|H.||Documents on display||11 |
|Item 11.||Quantitative and Qualitative Disclosures About Market Risk||36, 231, 245-250|
|Item 12.||Description of Securities Other than Equity Securities|
|A.||Debt Securities||Exhibit 2.5|
|B.||Warrants and Rights||N/A|
|D.||American Depositary Shares||286, 289-290, Exhibit 2.5|
|Item 13.||Defaults, Dividend Arrearages and Delinquencies||N/A|
|Item 14.||Material Modifications to the Rights of Security Holders and Use of Proceeds||N/A|
|Item 15.||Controls and Procedures||187, 202, 282|
|Item 16A.||Audit committee financial expert||124, 143, 189|
|Item 16B.||Code of Ethics||189|
|Item 16C.||Principal Accountant Fees and Services||154, 258, 285|
|Item 16D.||Exemptions from the Listing Standards for Audit Committees||189 |
|Item 16E.||Purchases of Equity Securities by the Issuer and Affiliated Purchasers||39, 187|
|Item 16F.||Change in Registrant’s Certifying Accountant||N/A|
|Item 16G.||Corporate Governance||189-195|
|Item 16H.||Mine Safety Disclosure||N/A|
|Item 16I.||Disclosure Regarding Foreign Jurisdictions that Prevent Inspections||N/A|
|Item 17.||Financial Statements||N/A|
|Item 18.||Financial Statements||196-260, 282-285|
TERMS AND ABBREVIATIONS
Units of measurement
|acre||approximately 0.004 square kilometres|
|b(/d)||barrels (per day)|
|boe(/d)||barrels of oil equivalent (per day); natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel|
|kboe(/d)||thousand barrels of oil equivalent (per day); natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel|
|MMBtu||million British thermal units|
|megajoule||a unit of energy equal to one million joules|
|mtpa||million tonnes per annum|
|per day||volumes are converted into a daily basis using a calendar year|
|scf(/d)||standard cubic feet (per day)|
|LNG||liquefied natural gas|
|LPG||liquefied petroleum gas|
|NGL||natural gas liquids|
|ADS||American Depositary Share|
|AGM||Annual General Meeting|
|API||American Petroleum Institute|
|CCS||carbon capture and storage|
|CCS earnings||earnings on a current cost of supplies basis|
|EMTN||Euro medium-term note|
|EPS||earnings per share|
|FCF||free cash flow|
|FID||final investment decision|
|GAAP||generally accepted accounting principles|
|HSSE||health, safety, security and environment|
|IAS||International Accounting Standards|
|IEA||International Energy Agency|
|IFRS||International Financial Reporting Standard(s)|
|IOGP||International Association of Oil & Gas Producers|
|IPIECA||International Petroleum Industry Environmental Conservation Association|
|LTIP||Long-term Incentive Plan|
|OECD||Organisation for Economic Co-operation and Development|
|OML||oil mining lease|
|OPEC||Organization of the Petroleum Exporting Countries|
|OPL||oil prospecting licence|
|PSP||Performance Share Plan|
|SEC||US Securities and Exchange Commission|
|TRCF||total recordable case frequency|
|TSR||total shareholder return|
|WTI||West Texas Intermediate|
ABOUT THIS REPORT
This Form 20-F as filed with the US Securities and Exchange Commission for the year ended December 31, 2021 (this Report) presents the Consolidated Financial Statements of Shell plc (the Company) and its subsidiaries (collectively referred to as Shell) (pages 204-261) and the Financial Statements of the Royal Dutch Shell Dividend Access Trust (pages 284-286). Except for these Financial Statements, the numbers presented throughout this Report may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures due to rounding. Cross-references to Form 20-F are set out on pages 7 of this Report.
The Financial Statements contained in this Report have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). IFRS as defined above includes interpretations issued by the IFRS Interpretations Committee. Financial reporting terms used in this Report are in accordance with IFRS.
This Report contains certain forward-looking non-GAAP measures such as cash capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of the company, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.
The companies in which Shell plc directly or indirectly owns investments are separate legal entities. In addition to the term “Shell”, in this Report “Shell Group”, “we”, “us” and “our” are also used to refer to the Company and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. “Subsidiaries” and “Shell subsidiaries” refer to those entities over which the Company has control, either directly or indirectly. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. “Joint ventures” and “joint operations” are collectively referred to as “joint arrangements”. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest. Shell subsidiaries’ data include their interests in joint operations.
As used in this Report, “Accountable” is intended to mean: required or expected to justify actions or decisions. The Accountable person does not necessarily implement the action or decision (implementation is usually carried out by the person who is Responsible) but must organise the implementation and verify that the action has been carried out as required. This includes obtaining requisite assurance from Shell companies that the framework is operating effectively. “Responsible” is intended to mean: required or expected to implement actions or decisions. Each Shell company and Shell-operated venture is responsible for its operational performance and compliance with the Shell General Business Principles, Code of Conduct, Statement on Risk Management and Risk Manual, and Standards and Manuals. This includes responsibility for the operationalisation and implementation of Shell Group strategies and policies.
This Report references Shell’s Sky 1.5 scenarios, specifically within the "Climate change and energy transition" section (pages 74-97). Unlike Shell’s previously published Mountains and Oceans exploratory scenarios, the Sky scenario is based on the assumption that society reaches the Paris Agreement’s goal of holding the rise in global average temperatures this century to well below two degrees Celsius (2°C) above pre-industrial levels. Unlike Shell’s Mountains and Oceans scenarios which unfolded in an open-ended way based upon plausible assumptions and quantifications, the Sky scenario was specifically designed to reach the Paris Agreement’s goal in a technically possible manner.
Sky 1.5 scenario starts with data from Shell’s Sky scenario but is more aggressive and challenging in its assumptions about energy transitions as the pace of change is accelerated. As in Sky, this scenario is normative, meaning we assumed that society achieves the 1.5 degrees Celsius stretch goal of the Paris Agreement, and we worked back in designing how this could occur. Of course, there are many possible paths that society could take to achieve this goal. This will be extremely challenging, but as of today, we believe there is still a technically possible path while maintaining a growing global economy. However, we believe the window for success is quickly closing.
These scenarios are a part of an ongoing process used in Shell for over 40 years to challenge executives’ perspectives on the future business environment. They are designed to stretch management to consider even events that may only be remotely possible. Scenarios, therefore, are not intended to be predictions of likely future events or outcomes. Shell’s scenarios also are not intended to be projections or forecasts of the future. Shell’s scenarios, including the scenarios referenced in this Report, are not Shell’s strategy or business plan. When developing Shell’s strategy, our scenarios are one of many variables that we consider. Ultimately, whether society meets its goals to decarbonise is not within Shell’s control. While we intend to travel this journey in step with society, only governments can create the framework for success.
Shell’s operating plan, outlook and budgets are forecasted for a 10-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and NCF targets over the next 10 years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCF target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement.
Shell’s “Net Carbon Footprint” or "net carbon intensity" referred to in this Report include Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production, and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term "Net Carbon Footprint” or "net carbon intensity" is for convenience only and not intended to suggest these emissions are those of Shell or its subsidiaries.
Except where indicated, the figures shown in the tables in this Report are in respect of subsidiaries only, without deduction of any non-controlling interest. However, the term “Shell share” is used for convenience to refer to the volumes of hydrocarbons that are produced, processed or sold through subsidiaries, joint ventures and associates. All of a subsidiary’s production, processing or sales volumes (including the share of joint operations) are included in the Shell share, even if Shell owns less than 100% of the subsidiary. In the case of joint ventures and associates, however, Shell-share figures are limited only to Shell’s entitlement. In all cases, royalty payments in kind are deducted from the Shell share.
Except where indicated, the figures shown in this Report are stated in US dollars. As used herein all references to “dollars” or “$” are to the US currency.
This Report contains forward-looking statements (within the meaning of the US Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “goals”, “intend”, “may”, “milestones”, “objectives”, “outlook”, “plan”, “probably”, “project”, “risks”, “schedule”, “seek”, “should”, “target”, “will” and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this Report, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. Also see “Risk factors” on pages 23-32 for additional risks and further discussion. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this Report are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of this Report. Neither the Company nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this Report.
Past performance cannot be relied on as a guide to future performance.
This Report contains references to Shell’s website, the Shell Sustainability Report, Tax Contribution Report, Industry Associations Climate Review and our report on Payments to Governments. These references are for the readers’ convenience only. Shell is not incorporating by reference into this Report any information posted on www.shell.com or in the Shell Sustainability Report, Tax Contribution Report, Industry Associations Climate Review or our report on Payments to Governments. The content of any other websites referred to in this Report does not form part of this Report..
With effect from January 29, 2022, Shell’s A shares and B shares were assimilated into a single line of ordinary shares. Shell’s A and B American Depositary Shares (ADSs) were assimilated into a single line of ADSs on the same date. This Report continues to refer to A shares, B shares, A ADSs and B ADSs when describing the position prior to January 29, 2022.
Shell V-Power and Shell LiveWire are Shell trademarks.
DOCUMENTS ON DISPLAY
The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. All of the SEC filings made electronically by Shell are available to the public on the SEC website at www.sec.gov (commission file number 001-32575).
This Report is also available, free of charge, at www.shell.com/investors/financial-reporting/sec-filings or at the offices of Shell in London, United Kingdom and The Hague, the Netherlands. Copies of this Report also may be obtained, free of charge, by mail.
SHELL POWERING PROGRESS
Shell is a global group of energy and petrochemical companies with 82,000 employees and operations in more than 70 countries.
We use advanced technologies and take an innovative approach to help build a sustainable energy future. Shell is a customer-focused organisation, serving more than
1 million commercial and industrial customers, and around 32 million customers at 46,000 retail service stations daily.
Our strategy is to accelerate the transition of our business to net-zero emissions, purposefully and profitably, in step with society.
The rising standard of living of a growing global population is likely to continue to drive demand for energy, including oil and gas, for years to come. At the same time, technological changes and the need to tackle climate change mean there is a transition under way to a lower-carbon, multi-source energy system with increasing customer choice.
Our Powering Progress strategy combines our ambitions under four goals: generating shareholder value, achieving net-zero emissions, powering lives and respecting nature.
This will help accelerate our progress towards becoming a net-zero emissions energy business by 2050, in step with society. We are building a strong resilient business
by putting customers at the centre of our strategy, innovating the products and solutions customers need
on their journey to net zero.
We aim to deliver value through our integrated assets and supply chains, optimising value and managing risk for Shell and our customers as we produce, buy, trade, transport and sell energy products and solutions across the world.
▪Our investor community
▪Our strategic partners/suppliers
▪NGOs/civil society stakeholders/academia/think-tanks
See “Environment and society”, “Our people” and “Governance”
We power progress together by providing more and cleaner energy solutions.
See “Strategy and outlook”
OUR CORE VALUES
▪Respect for people
See “Our people”
SHELL POWERING PROGRESS continued
OUR INPUTS [A]
Equity attributable to Shell plc shareholders ($ billion) [B]:
172 2020: 155
Non-current debt ($ billion) [B]:
81 2020: 91
Net debt ($ billion) [B][C]:
53 2020: 75
Average capital employed ($ billion) [B]:
265 2020: 277
Cash capital expenditure ($ billion) [C]:
20 2020: 18
Refining and chemicals availability:
96% 2020: 96%
Oil & gas production available for sale (kboe/d):
3,237 2020: 3,386
LNG liquefaction volumes (million tonnes):
31 2020: 33
Number of employees (thousands) [B]:
82 2020: 87
Number of training days (thousands):
271 2020: 234
Customers, joint arrangements,
Government relations, suppliers.
Operating countries [B]
>70 2020: >70
Research and development expenses ($ million):
815 2020: 907
Number of patents [B]:
8,532 2020: 8,480
Proved oil and gas reserves (million boe) [B]:
9,365 2020: 9,124
Energy consumed (million MWh):
223 2020: 241
[A] In 2021 unless stated otherwise
[B] At December 31.
[C] See "Non-GAAP measures reconciliations" on pages 294-297.
We aim to meet the world’s growing need for more and cleaner energy solutions in ways that are economically, environmentally and socially responsible. Our Powering Progress strategy is designed to create value for our shareholders, customers and wider society.
OUR OUTCOMES AND IMPACTS [A]
Cash flow from operating activities ($ billion):
45 2020: 34
Adjusted earnings ($ billion) [C]:
19 2020: 5
Adjusted EBITDA (CCS basis –
$ billion) [C]:
55 2020: 37
Shareholder distributions ($ billion) [C]:
9 2020: 9
(Scope 1 and 2 – million tonnes of CO₂ equivalent):
68 2020: 72 | 2016: 83
Net carbon intensity
(Scope 1, 2 and 3 – grams of CO₂ equivalent per megajoule):
77 2020: 75 | 2016: 79
Women in senior leadership positions [B]:
30% 2020: 28%
Taxes paid and collected
59 2020: 47
Total spend on goods and services ($ billion):
38 2020: 39
Fresh water consumed
in our facilities (million m³):
22 2020: 22 | 2018: 25
Waste disposed (million tonnes):
2 2020: 2
SHELL POWERING PROGRESS continued
Delivering our Powering Progress strategy
INTEGRATED GAS, RENEWABLES AND ENERGY SOLUTIONS
Integrated Gas manages liquefied natural gas (LNG) activities and the conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas exploration and extraction, and the operation of upstream and midstream infrastructure necessary to deliver gas to market.
In Renewables and Energy Solutions (R&ES), we are exploring emerging opportunities and investing in those where we believe sufficient commercial value is available. R&ES includes Shell’s production and marketing of hydrogen, nature and environmental solutions as well as our integrated power activities.
Upstream manages the exploration for and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates infrastructure necessary to deliver them to market.
While the Upstream business delivers the energy of today, it is also funding the energy of tomorrow and will play a fundamental role in supporting Shell’s ambitious transformation.
Downstream manages different Oil Products and Chemicals activities as part of an integrated value chain that trades and refines crude oil and other feedstocks into a range of products which are moved and marketed around the world for domestic, industrial and transport use. The products we sell include gasoline, diesel, heating oil, aviation fuel, marine fuel, biofuel, lubricants, bitumen and sulphur. We also produce and sell petrochemicals for industrial use worldwide.
Our Downstream organisation also manages Oil Sands activities (the extraction of bitumen from mined oil sands and its conversion into synthetic crude oil).
PROJECTS & TECHNOLOGY
Our Projects & Technology organisation manages the delivery of our major projects and drives research and innovation to develop new technology solutions. It provides technical services and technology capability for our Integrated Gas, Upstream and Downstream activities. It is also responsible for providing functional leadership across Shell in the areas of safety and environment, contracting and procurement, wells activities and greenhouse gas management.
Technology and innovation are essential to our efforts to meet the world’s energy needs in a competitive way. If we do not develop the right technology, do not have access to it or do not deploy it effectively, this could have a material adverse effect on the delivery of our strategy and our licence to operate (see “Risk factors” on pages 23-32). Our Chief Technology Officer, who is p