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  • Overall approach
    5/12
    • Overarching commitment on deforestation
      2/4
      Zero net deforestation or, for soy, palm oil, leather and beef companies only, no deforestation of HCV and HCS forests
      2/4
      Commodities (if applicable): 0
      "Our new commitments from 2021 [...] We will replant forests, achieving net-zero deforestation³ from new activities, while maintaining biodiversity and conservation value, starting implementation in 2022." ; "We will start to include these requirements into our internal processes, for example impact assessments, during 2021 and we expect to start implementation from 2022. We will share our progress in our 2022 Sustainability Report."
    • Signatory to an initiative tackling deforestation
      1/1
      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; Natural Capital 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
      Yes
      1/1
      "The world needs a range of measures to limit carbon dioxide (CO2) emissions while meeting rising energy demand. They include the protection and restoration of natural ecosystems such as forests, grasslands and wetlands."  
    • Deforestation as a business risk
      0/1
    • High-level management of deforestion
      1/1
      Yes
      1/1
      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Throughout the year, reports Annually

      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
      0/2
    • Reporting on emissions from land-use change
      0/2
    • Disclosure of conservation activity
      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
      Yes
      0/0
      Type of climate target: Net-zero emissions

      What is the target date for the company to achieve their climate target?: 2050
      "We announced a long-term target to become a net-zero emissions energy business by 2050, in step with society. This includes a target to be net zero on all emissions from the manufacture of all our products – (our Scope 1 and 2 emissions) – by 2050, and also net zero from the end use of all the energy products we sell (Scope 3 emissions)."
  • Commodity score
    24/88
    • Palm oil
      27/88
      • Commitment Strength
        10/20
        • Commitment to protect priority forests
          4/8
          • Commitment details
            Credible certification scheme
            2/6
            Commitment to protect priority forests
            Credible certification scheme
            2/6
            Which certification schemes are used?: RSPO
            "All the palm oil that we blend is certified by the Roundtable for Sustainable Palm Oil (RSPO) or International Sustainability and Carbon Certification for feedstocks or covered by offsets from theRSPO certificate trading system. We continue to participate in theRSPO and support its latest set of standards for sustainable palm oilproduction adopted in 2018."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "All the palm oil that we blend is certified by the Roundtable for Sustainable Palm Oil (RSPO) or International Sustainability and Carbon Certification for feedstocks or covered by offsets from theRSPO certificate trading system. We continue to participate in theRSPO and support its latest set of standards for sustainable palm oilproduction adopted in 2018."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "All the palm oil that we blend is certified by the Roundtable for Sustainable Palm Oil (RSPO) or International Sustainability and Carbon Certification for feedstocks or covered by offsets from the RSPO certificate trading system. We continue to participate in the RSPO and support its latest set of standards for sustainable palm oil production adopted in 2018."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
        • Commitment to protect High Carbon Stock areas and/or peatlands
          5/5
          • Commitment details
            Yes
            3/3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            3/3
            Type of commitment: HCS; Peat
            "All the palm oil that we blend is certified by the Roundtable forSustainable Palm Oil (RSPO) or International Sustainability andCarbon Certification for feedstocks or covered by offsets from theRSPO certificate trading system. We continue to participate in theRSPO and support its latest set of standards for sustainable palm oilproduction adopted in 2018."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "All the palm oil that we blend is certified by the Roundtable forSustainable Palm Oil (RSPO) or International Sustainability andCarbon Certification for feedstocks or covered by offsets from theRSPO certificate trading system. We continue to participate in theRSPO and support its latest set of standards for sustainable palm oilproduction adopted in 2018."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "All the palm oil that we blend is certified by the Roundtable forSustainable Palm Oil (RSPO) or International Sustainability andCarbon Certification for feedstocks or covered by offsets from theRSPO certificate trading system. We continue to participate in theRSPO and support its latest set of standards for sustainable palm oilproduction adopted in 2018."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
        • Commitment to a traceable supply chain
          0/6
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
      • Social Considerations
        8/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          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
          "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
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "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 resolve land conflicts
          No
      • Reporting and Implementation
        9/50
        • Reporting against commitments
          2/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            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.
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Progress reported within their 2020 ACOP report 
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          1/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which processes or groups does the company use for third party verification?: RSPO certfication

            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO certification
            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.
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO

            Which processes or groups does the company use for third party verification?: RSPO
            Progress reported within their 2020 ACOP report 
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          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
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 760,393 tonnes
          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.
        • Report verified volumes of commodity
          1-49%
          2/6
          Report verified volumes of commodity
          1-49%
          2/6
          What is the compliant volume?: 320,731 tonnes

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 42.18%

          What is the certified volume?: 320,731 tonnes
          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.
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          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
      20/88
      • Commitment Strength
        6/20
        • Commitment to protect priority forests
          6/11
          • Commitment details
            Credible certification scheme
            2.7/8
            Commitment to protect priority forests
            Credible certification scheme
            2.7/8
            Which certification schemes are used?: RTRS
            "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."
          • 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
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            "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."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2022)
            0.5/0.5
        • Commitment to a traceable supply chain
          0/9
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
      • Social Considerations
        8/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
          "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
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "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 resolve land conflicts
          No
      • Reporting and Implementation
        6/50
        • Reporting against commitments
          1/3
          • Commitment to protect priority forests
            Yes, for partial or unclear commodity exposure
            1.3/2.5
            Commitment to protect priority forests
            Yes, for partial or unclear commodity exposure
            1.3/2.5
            "Shell aims to have 100% of the sugar-cane ethanol and South American soy biodiesel used in Shell-blended or traded biofuels certified as sustainable by 2020. In 2019, 80% was certified as sustainable"
          • Commitment to a traceable supply chain
            No
            0/2.5
        • Reporting is independently verified
          2/2
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1.5/1.5
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1.5/1.5
            Which tools, approaches, third-party verification, including certification, schemes are used?: RTRS

            Which processes or groups does the company use for third party verification?: RTRS
            "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."
          • Commitment to a traceable supply chain
            No
            0/1.5
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          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
          Reporting partial volumes
          1/2
          Report volumes of commodity
          Reporting partial volumes
          1/2
          Total/partial volume reported: 377.6 kt
          Royal Dutch Shell reported their total consumption of soy to RTRS, including how much was covered by credits- "Shell purchased 377.6 kt of ‘direct’ soy derivatives for use in fuel and chemical products in 2019"
        • Report verified volumes of commodity
          1-49%
          2/6
          Report verified volumes of commodity
          1-49%
          2/6
          What is the non-certified/non-compliant volume?: 377.6 kt

          What is the certified volume?: 16,455 tons

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 4.3%
          Royal Dutch Shell reported their total consumption of soy to RTRS, including how much was covered by credits- "Shell purchased 377.6 kt of ‘direct’ soy derivatives for use in fuel and chemical products in 2019"
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          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
    8/20
    Avg. score
  • Reporting and Implementation
    8/50
    Avg. score
  • Social considerations
    8/18
    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 
Biofuel, Chemicals
Segments
Manufacturer
HQ
HQ 
Netherlands
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

Top Brands

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.