guide royal dutch shell plc sustainable development … · are a number of factors that could...
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Copyright of Royal Dutch Shell plc 10 October 2012 1
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SUSTAINABLE DEVELOPMENT & COMMUNITY RELATIONS
PORT HARCOURT OCTOBER 10, 2012
ROYAL DUTCH SHELL PLC
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PHILIP MSHELBILA MANAGER SUSTAINABLE DEVELOPMENT AND COMMUNITY RELATIONS
SUSTAINABLE DEVELOPMENT & COMMUNITY RELATIONS
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The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. „„Subsidiaries‟‟, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this presentation, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch 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 Royal Dutch 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 „„anticipate‟‟, „„believe‟‟, „„could‟‟, „„estimate‟‟, „„expect‟‟, „„intend‟‟, „„may‟‟, „„plan‟‟, „„objectives‟‟, „„outlook‟‟, „„probably‟‟, „„project‟‟, „„will‟‟, „„seek‟‟, „„target‟‟, „„risks‟‟, „„goals‟‟, „„should‟‟ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, 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, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (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; and (m) changes in trading conditions. All forward-looking statements contained in this presentation 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. Additional factors that may affect future results are contained in Royal Dutch Shell‟s 20-F for the year ended 31 December, 2011 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 10 October 2012. Neither Royal Dutch Shell 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 presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all. We use certain terms in this presentation, such as resources, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.
CAUTIONARY NOTE
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OUR APPROACH
The expansion of Social Performance is driven by: Deterioration in human development realities in
the Niger Delta over the decades which increased community expectations from SPDC JV
Growth of our business that increased our footprints and obligations to stakeholders
Widely recognised ineffectiveness of government in addressing development challenges
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Informing Involving Empowering Self Reliant
Community Assistance Community
Development
Sustainable Community
Development
Business Del. Framework
GMoU introduced
Focus areas
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Comm. Foundations Community owned utility companies Community Operated Ventures
$‟m
Community Health: strengthening health systems and expand opportunities for healthcare access
Education: Improving access to quality education and promoting educational excellence.
LiveWIRE: Youth and Women enterprise development to increase employment and enterprise
GMoU: Community driven local social and economic development
Micro-credit Women Programs added
Empowerment. HCD, CH and Strategic Partnership
Agric, YTS, Scholarships, Health
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SPDC JV OIL PRODUCTION thousand bbls per day
DEVELOPMENT SPEND IN THE NIGER DELTA $ million
SPDC JV SCD SNEPCO SCD
SPDC JV NDDC contribution SNEPCO NDDC contribution
SPDC JV & SNEPCO 2011 community investment >$76 million
In 2011 Shell ventures contribution to the Niger Delta Development Commission (NDDC) ~$164 million
GMoU agreements signed and being
implemented with 27 Clusters covering 290 communities; 30% of SPDC JV‟s operational areas
596 projects successfully completed using GMoUs
9 Cluster Development Boards (CDBs) registered as Foundations
Total cumulative spend on GMoUs >$79 million (2011 >$24 million)
2011 NIGERIA SDCR PERFORMANCE
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Amnesty
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NEW DELIVERY MECHANISM: GMoU
Fragmentation of communities and expansion of footprints
Pressure on engagement capacity Ineffective grievance handling
Legacy issues Frequent disruptions FTO challenges
Clustering agreed with communities, government and local institutions
Centralized community institutions for interface Comprehensive longer term agreements
Effectively addresses challenge of legacy issues Builds capacity of communities to drive development agenda Built-in grievance management systems
Multifunctional and adaptive model Engenders multi-stakeholder involvement Fosters social cohesion
Community decides
SPDC funds
Development NGO‟s build capacity
Community implemented
CLUSTER DEVELOPMENT
BOARD
(communities, SPDC, NAPIMS,
governments)
Capacity, comms & Partnership Committee
Conflict management & Peace Committee
Technical committee
Finance & resource management committee
GMoU Steering Committee
(led by State Government)
PRIOR REALITIES REALITY AFTER SUCCESSFUL GMOU
HIGH SUSTAINABILITY PROSPECTS
unsustainable
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596 projects in various sectors completed
Potential for transformation into development foundations with diverse funding
9 CDBs now registered Foundations
Demonstrated capacity to utilise business opportunities (community content, surveillance)
DELIVERING SUSTAINABLE BENEFITS - GMoU
Emergence of capable community institutions
Peaceful inter-community interaction
Increased local capacity for long term planning, project management and implementation
Local platform for engaging international development agencies
Road transport business Community health insurance scheme
Solar water projects
Marine transport
Nembe ICT centre Road construction
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Programme has trained 3,208 Niger Delta youths in enterprise development and 708 youths assisted to set up businesses
2010 SERA Award
2011 African Leadership Magazine Awards for Youth Development
2 LiveWIRE beneficiaries won the Central Bank of Nigeria‟s Entrepreneurship Awards
2 candidates won international awards, which enabled them to visit England and Dubai to network and develop business linkages, on the Go and Trade Award
Signed agreement with NDDC to expand LiveWIRE to cover the entire Niger Delta region
DELIVERING SUSTAINABLE BENEFITS - LIVEWIRE
Bioma Beregha a liveWIRE beneficiary on Go and Trade linkage in UK
SERA Award winner
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STRENGTHENING HEALTH SYSTEMS 27 SPDC supported health facilities receive
equipment, infrastructure upgrades, technical assistance and workforce training
>275,000 patients and >2,400 babies born there in 2011
Drug revolving schemes operated in 25 health facilities
Support 7 states on National Immunisation program
527 households to receive improved cook stoves in 2012
INNOVATIVE HEALTH FINANCING Community Health Insurance Scheme on the back
of GMoUs with >11,000 subscriptions
REMOVING GEOGRAPHICAL BARRIERS TO HEALTH CARE Health in Motion Program: >144,000
beneficiaries benefitted from mobile health care services
DELIVERING SUSTAINABLE BENEFITS - COMMUNITY HEALTH STRATEGIC HEALTH OBJECTIVES & INITIATIVES
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ACCESS TO EDUCATION Annual scholarship awards to secondary and
university students; 13,650 secondary and 3,400 university beneficiaries
Providing secondary school education to hard-to-reach pupils with scholarships to elite private schools; 120 pupils participating
Cradle to Career received special recognition at
the 2011 United Nations Innovation Fair QUALITY OF EDUCATION SPDC signed partnership with Discovery Channel
Global Education Partnership for 3 year period. Established 18 learning centres with audio-visual technologies as part of standard curriculum
PROMOTING EXCELLENCE Organise with INTEL Corporation and Federal
Ministry of Education an annual science fair and quiz competition for secondary schools.
DELIVERING SUSTAINABLE BENEFITS- EDUCATION STRATEGIC EDUCATION OBJECTIVES & INITIATIVES
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QUESTIONS & ANSWERS
SUSTAINABLE DEVELOPMENT & COMMUNITY RELATIONS