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  • Overall approach
    3/16
    • Overarching commitment on deforestation
      0/6
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      If Other Initiative, specify::

      Which initiatives?: Consumer Goods Forum; 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
      Awareness
      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
      High-level management
      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
      0/3
    • Reporting on emissions from land-use change
      0/3
    • 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?: 1,200HT
      "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
      No
      0/0
      How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 1,200HT
  • Commodity score
    34/84
    • Palm oil
      35/84
      • Commitment Strength
        18/28
        • Commitment to protect priority forests
          10/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            Which certification schemes are used?: RSPO
            "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
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "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/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            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."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            Target date is current - see 3.2
        • Commitment to protect High Carbon Stock areas and/or peatlands
          8/8
          • Commitment details
            Yes
            4/4
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            4/4
            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
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "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/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            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."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            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."
        • Commitment to a traceable supply chain
          0/8
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
      • Social Considerations
        6/18
        • 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
          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/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "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."
      • Reporting and Implementation
        11/38
        • Reporting against commitments
          4/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            2018 ACOP states that Shell used 543,864 tons of palm oil in 2018, of which 246,987 tons are RSPO-certified. Of the certified amount, 180,133 tons are are through RSPO Credits, 66,827 tons are Mass Balance, and 27 tons are Segregated.
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            Progress reported within their 2019 ACOP report
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          3/4
          • Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            For what percent of the company’s supply volume is third-party verification of performance relative to commitments conducted?: 45%

            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
            2018 ACOP states that Shell used 543,864 tons of palm oil in 2018, of which 246,987 tons are RSPO-certified. Of the certified amount, 180,133 tons are are through RSPO Credits, 66,827 tons are Mass Balance, and 27 tons are Segregated.
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Which processes or groups does the company use for third party verification?: RSPO Certification

            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO Certification
            Progress reported within their 2019 ACOP report
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
          Collaborative actions
          No
          0/2
          What is the nature of that participation?: Attending & contributing to meetings; Providing support/advice/experience/expertise

          What initiatives does the company participate in?: Cordillera Azul National Park Project, partnership with Patum Veg
          "As one of the most established traders of carbon credits in the world, Shell buys these credits from a global portfolio of nature-based projects, including Cordillera Azul National Park Project in Peru, Katingan Peatland Restoration and Conservation Project in Indonesia and GreenTrees Reforestation Project in the USA. Each carbon credit is subject to a third-party verification process and represents the avoidance or removal of 1 tonne of CO2.." [...] "In Thailand, in partnership with Patum Veg, our largest biodiesel supplier, we supported palm oil smallholder farmers to obtain certification against RSPO. In 2015, nearly 800 farmers passed an independent audit against this robust standard. We are looking at expanding its scope so more farmers in Thailand can benefit from the value RSPO certifications brings to their products."1:53But I think it could count for collab action?
        • 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 non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Which certification schemes are used?: RSPO

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 45%

          What is the certified volume?: 246,987 tons

          What is the non-certified/non-compliant volume?: 296,877 tons
          2018 ACOP states that Shell used 543,864 tons of palm oil in 2018, of which 246,987 tons are RSPO-certified. Of the certified amount, 180,133 tons are are through RSPO Credits, 66,827 tons are Mass Balance, and 27 tons are Segregated.
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          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
      32/84
      • Commitment Strength
        17/28
        • Commitment to protect priority forests
          17/17
          • Commitment details
            Zero-gross conversion
            10.7/10.7
            Commitment to protect priority forests
            Zero-gross conversion
            10.7/10.7
            (For downstream soy companies only) Does the company commitment also apply to hidden/indirect soy?: No

            Which certification schemes are used?: RTRS
            "Where possible, Shell sources biofuels that have been certified against internationally recognised sustainability standards. These include the Round Table on Responsible Soy [...] Shell aims to have 100% of the sugar-cane ethanol and South American soy biodiesel used in Shell-blended biofuels certified as sustainable by 2020."
          • Commitment applies to all regions, suppliers and operation
            Yes
            3/3
            Commitment applies to all regions, suppliers and operation
            Yes
            3/3
            If no, what is excluded?: Product line; Location
            Only applies to South American soy biodiesel - "Where possible, Shell sources biofuels that have been certified against internationally recognised sustainability standards. These include the Round Table on Responsible Soy [...] Shell aims to have 100% of the sugar-cane ethanol and South American soy biodiesel used in Shell-blended biofuels certified as sustainable by 2020."
          • Target date
            Current/2020/Pre-2020
            2/2
            Target date
            Current/2020/Pre-2020
            2/2
            "Where possible, Shell sources biofuels that have been certified against internationally recognised sustainability standards. These include the Round Table on Responsible Soy [...] Shell aims to have 100% of the sugar-cane ethanol and South American soy biodiesel used in Shell-blended biofuels certified as sustainable by 2020."
          • Interim target date
            Yes
            1/1
            Interim target date
            Yes
            1/1
            What date is given for the interim milestone(s)?: current
            Target date is current - see 3.2
        • Commitment to a traceable supply chain
          0/11
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
      • Social Considerations
        6/18
        • 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/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "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."
      • Reporting and Implementation
        9/38
        • Reporting against commitments
          3/6
          • Commitment to protect priority forests
            Yes
            3/3
            Commitment to protect priority forests
            Yes
            3/3
            "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
            0/3
        • Reporting is independently verified
          2/4
          • Commitment to protect priority forests
            Yes: third-party
            2/2
            Commitment to protect priority forests
            Yes: third-party
            2/2
            For what percent of the company’s supply volume is third-party verification of performance relative to commitments conducted?: 80%

            Which processes or groups does the company use for third party verification?: RTRS

            Which tools, approaches, third-party verification, including certification, schemes are used?: RTRS
            "Where possible, Shell sources biofuels that have been certified against internationally recognised sustainability standards. These include the Round Table on Responsible Soy [...] Shell aims to have 100% of the sugar-cane ethanol and South American soy biodiesel used in Shell-blended biofuels certified as sustainable by 2020." "In 2019, 80% was certified as sustainable."
          • Commitment to a traceable supply chain
            No
            0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
          Collaborative actions
          No
          0/2
          What initiatives does the company participate in?: Supporting Soy farms to attain certification
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
          Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Which certification schemes are used?: RTRS

          What is the non-certified/non-compliant volume?: 377.6 kt

          What is the certified volume?: 16,455 tons
          Royal Dutch Shell reported their total consumption of soy to RTRS, including how much was covered by credits.
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          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
    17/28
    Avg. score
  • Reporting and Implementation
    10/38
    Avg. score
  • Social considerations
    6/18
    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.