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  • Overall approach
    5/10
    • Overarching commitment on deforestation
      2/4
      Overall commitment
      Zero net deforestation or, for soy, palm oil, leather and beef companies only, no deforestation of HCV and HCS forests
      2/4
      "Net-zero deforestation We have set a new commitment that we will replant forests, achieving net-zero deforestation from new activities, while maintaining biodiversity and conservation value.[...] New activities in scope have been identified, enabling us to start implementation from 2022. [...] we will share our progress annually."
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      Which initiatives?: Consumer Goods Forum Deforestation resolution (being a member of the CGF is not sufficient); World Business Council for Sustainable Development Forest Solutions Group; UN Global Compact; The Capitals Coalition
      "In June 2015, we joined the Natural Capital Coalition, that brings together a broad range of global stakeholders, including organisations from business and finance, government, academia and civil society." [...] other signatories are listed within a table on the linked site - "The table shows some of the organisations that we collaborate with globally on topics such as environmental sustainability, climate change and technology. Shell also works with many community-based organisations." Company is a signatory to the Consumer Goods Forum
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "As well as reducing and avoiding CO2 emissions, nature-based solutions (NBS) projects can protect and restore biodiversity. We are investing in protecting and enhancing natural ecosystems, such as forests, grasslands and wetlands, to capture carbon from the atmosphere and help our customers offset their emissions."
    • Deforestation as a business risk
      0/1
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: NA

      Which commodities does it apply to?: Palm oil; Soy
      "One of the four Board Committees is our Safety, Environment and Sustainability Committee (SESCo), formerly the Corporate and Social Responsibility Committee. It reviews and advises on our sustainability policies and practices to ensure that these are discussed, understood, owned and promoted at Board level. The SESCo also visits different Shell operations each year to speak with Shell employees, contractors and suppliers, as well as with community members and external stakeholders. After each visit, the SESCo shares its observations with the Board and with the management responsible for that project. The Committee’s work strengthens sustainability within our operations around the world [...] SESCo meets regularly throughout the year. It reviews and discusses a wide range of sustainability-related topics and assesses our sustainability performance, audit results and the sustainable development metrics that apply to the Executive Committee. It also monitors major issues of public concern that may be relevant to Shell."
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/1
    • Reporting on emissions from land-use change
      0/1
    • Disclosure of conservation activity
      Conservation disclosure
      Yes
      0/0
      How many hectares of conservation area are being supported or facilitated by the company on land it does not own or manage?: 1,200 hectares
      "Once barren, an area of 1,200 hectares along the Hazira peninsula now thrives with flora and fauna. The land even provides food and extra income to local residents, thanks to an eco-restoration project Shell and its partners initiated."
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
      Reduce emissions
      Yes
      0/0
      Type of climate target: Net-zero emissions

      Is this target aligned with/verified by SBTi?: No

      What is the target date for the company to achieve their climate target?: 2050
      "Shell's target is to become a net-zero emissions energy business by 2050. [...] To help step up the pace of change, in October 2021, we set a target to reduce absolute emissions by 50% by 2030, compared to 2016 levels1. This covers all emissions in Scope 1, which come directly from our operations, and in Scope 2, from the energy we buy to run our operations"
  • Commodity score
    13/90
    • Palm oil
      17/90
      • Commitment Strength
        6/17
        • Commodity-specific deforestation commitment
          4/4
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "We purchase biocomponents to blend into fuels and/or to trade. Some biofuel feedstocks are considered higher risk with regard to human rights, biodiversity or the release of carbon into the atmosphere. To help mitigate these risks, all the palm oil [...] we purchase is certified as sustainable under credible sustainability standards like the [...] Roundtable for Sustainable Palm Oil"
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: Buy 100% RSPO certified palm
            "We purchase biocomponents to blend into fuels and/or to trade. Some biofuel feedstocks are considered higher risk with regard to human rights, biodiversity or the release of carbon into the atmosphere. To help mitigate these risks, all the palm oil [...] we purchase is certified as sustainable under credible sustainability standards like the [...] Roundtable for Sustainable Palm Oil"
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: NA
            "We purchase biocomponents to blend into fuels and/or to trade. Some biofuel feedstocks are considered higher risk with regard to human rights, biodiversity or the release of carbon into the atmosphere. To help mitigate these risks, all the palm oil [...] we purchase is certified as sustainable under credible sustainability standards like the [...] Roundtable for Sustainable Palm Oil"
        • Commitment to a traceable supply chain
          0/7.5
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
      • Associated Human Rights Abuses
        5/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Other workers' rights commitments: Guaranteed safe and healthy workspaces

          Details of commitment: ILO; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association

          How far back in the supply chain does this commitment apply?: Tier 1
          "Contractors and suppliers conduct their activities in a manner that respects human rights as set out in the United Nations Universal Declaration of Human Rights and the core conventions of the International Labour Organization (ILO) including ensuring:no use of child labour; no use of forced, prison or compulsory labour; [...] Compliance with all applicable laws and regulations on freedom of association and collective bargaining; a safe, secure and healthy workplace and not tolerating discrimination, harassment or retaliation"
        • Inclusion of small-scale farmers
          No
          0/2
        • Gender equality in the supply chain
          No commitment
          0/2
        • Commitment to remediation
          No
          0/1
        • Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: NA
          "We recognise the principle of free, prior and informed consent (FPIC), as interpreted by the International Finance Corporation Performance Standards, as a safeguard for indigenous peoples’ rights. We believe our approach is consistent with the application of this principle, while respecting the laws of the jurisdictions in which we operate."
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        6/56
        • Reporting proportion of compliant volumes
          0/0
        • Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          2/2
          Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          2/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          Reporting non-certified/non-compliant volume: NA

          Total volume: 760,393 tonnes

          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA

          Reporting certified/compliant volume: 42.18%

          What product types/sectors is this in?: Oil and gas
          Shell's 2020 ACOP report states that they used 760,393 tonnes of palm oil and palm kernel oil, of which 42.18% was RSPO certified.
        • Monitor compliance for labour rights and FPIC
          No
          0/5
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Soy
      9/90
      • Commitment Strength
        4/17
        • Commodity-specific deforestation commitment
          2/4
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "We fully support the adoption of international sustainability standards for agricultural practices, and work with the Round Table on Responsible Soy, the Roundtable for Sustainable Palm Oil, Bonsucro, the Roundtable for Sustainable Biomaterials, and the International Sustainability and Carbon Certification for feedstocks."
          • Target date
            Past target date, not updated or not achieved
            0/1
            Target date
            Past target date, not updated or not achieved
            0/1
            What actions or steps are identified for time-bound implementation?: NA
            "By 2020, we aim to have 100% of the sugar-cane ethanol and South American soy biodiesel used in Shell blended biofuels certified as sustainable."
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/7.5
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
      • Associated Human Rights Abuses
        5/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Details of commitment: ILO; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association

          Other workers' rights commitments: Guaranteed safe and healthy workspaces

          How far back in the supply chain does this commitment apply?: Tier 1
          "Contractors and suppliers conduct their activities in a manner that respects human rights as set out in the United Nations Universal Declaration of Human Rights and the core conventions of the International Labour Organization (ILO) including ensuring:no use of child labour; no use of forced, prison or compulsory labour; [...] Compliance with all applicable laws and regulations on freedom of association and collective bargaining; a safe, secure and healthy workplace and not tolerating discrimination, harassment or retaliation"
        • Inclusion of small-scale farmers
          No
          0/2
        • Gender equality in the supply chain
          No commitment
          0/2
        • Commitment to remediation
          No
          0/1
        • Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: Tier 1
          "We recognise the principle of free, prior and informed consent (FPIC), as interpreted by the International Finance Corporation Performance Standards, as a safeguard for indigenous peoples’ rights. We believe our approach is consistent with the application of this principle, while respecting the laws of the jurisdictions in which we operate."
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        0/56
        • Reporting is independently verified
          No
          0/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity sourced/used
          No reporting
          0/3
        • Monitor compliance for labour rights and FPIC
          No
          0/5
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • Commitment strength
    5/17
    Avg. score
  • Implementation and Reporting
    3/56
    Avg. score
  • Associated Human Rights Abuses
    5/17
    Avg. score

Profile

Shell, headquartered in the Netherlands, is a group of energy and petrochemical companies operating globally. Segments of the business include the development of biofuels, using palm and soy products as a base. Royal Dutch Shell is selected as a powerbroker for palm oil and soy.

Sector
Industry sector 
Agricultural Products
Segments
Manufacturer
HQ
HQ 
Netherlands
Company Type
Company type 
CO
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

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Shell

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.