What strategies is Shell implementing to sustain its liquids production while reducing carbon intensity, and how are these strategies expected to impact their operations by 2030?

Shell is sustaining its liquids production by focusing exploration activities in locations where hydrocarbons have already been discovered and utilizing innovative designs in deep-water platforms to produce higher-margin and lower-carbon barrels. They aim to sustain production at least through 2030, with a target of 1.4 million barrels a day, while increasingly lowering the carbon intensity of their operations . This approach is expected to help Shell meet its sustainability goals without compromising on productivity .

Describe the governance structure that supports the implementation of Shell's strategy. What role do the CEO and the Executive Committee (EC) play in this structure?

The governance structure supporting Shell's strategy includes the CEO and the Executive Committee (EC), who play key roles. The CEO has overall responsibility for implementing the strategy approved by the Board and managing the company's operations. The EC operates under the CEO's direction, supporting his responsibilities. The structure ensures the company's strategic goals are managed across various operational facets .

How is Shell managing tax risks in light of evolving global tax landscapes, and what insights did the Audit and Risk Committee (ARC) focus on regarding tax risks in 2024?

To manage tax risks, Shell is keeping abreast of changes in the global tax environment, including windfall and minimum taxes, and understanding how different jurisdictions incentivize investments. The Audit and Risk Committee (ARC) focused on monitoring these developments, assessing Shell's tax provisions, and ensuring robust risk management strategies are in place to address differing regulatory interpretations in 2024 .

What role do government policies play in Shell's energy transition strategy, and how does Shell advocate their implementation?

Government policies are fundamental to Shell's energy transition strategy as they create a supportive framework for decarbonization and energy transition efforts. Shell advocates for these policies by promoting legislation and regulations that support the decarbonization of their customers and reduce their own emissions. They work to influence policy in areas where they can most effectively contribute to the transition, aiming to leverage their competitive strengths and regulatory support .

In what ways is Shell fostering diversity within its Board, and what progress has been made in terms of gender representation?

Shell is fostering diversity within its Board by ensuring that board appointments are managed with rigor and transparency, evaluating candidates based on merit with due regard for diversity factors. Progress in gender representation includes achieving 42% female representation on the Board, with five female directors out of twelve total directors. This progress is part of a broader commitment to diversity in terms of gender, race, ethnicity, and professional backgrounds .

What measures are included in Shell's Executive Directors' remuneration policy to align their interests with long-term company performance and shareholder value?

Shell's Executive Directors' remuneration policy includes shareholding requirements whereby directors must build up their shareholding to align their interests with long-term company performance. The CEO is required to hold shares equating to 700% of their base salary, while the CFO must hold 500%. These requirements ensure that the Executive Directors' personal wealth is tied to Shell's performance, thereby aligning their interests with those of shareholders .

What are the key areas of focus for Shell's Downstream, Renewables, and Energy Solutions business in terms of energy transition, and how does Shell plan to achieve these objectives?

Key focus areas for Shell's Downstream, Renewables, and Energy Solutions business include repurposing energy and chemicals parks, growing the electric vehicle charging business, investing in biofuels, and expanding integrated power positions. Shell plans to achieve these objectives by prioritizing value over volume, reducing emissions, and leveraging their competitive advantages. They aim to drive customer decarbonization by offering lower-carbon energy products and solutions .

How does Shell plan to address emissions from conventional fuels in its energy transition strategy?

Shell plans to address emissions from conventional fuels by implementing solutions such as carbon capture and storage (CCS) and using high-quality carbon credits to offset remaining emissions. This is part of their broader strategy to transition to low-carbon energy solutions, working with customers to decarbonize and substitute high-carbon fuels like coal with lower-carbon alternatives like LNG .

How does Shell's research and development (R&D) contribute to its net-zero emissions target, and what percentage of its R&D expenditure in 2024 was dedicated to decarbonization projects?

Shell's R&D contributes to its net-zero emissions target by focusing on projects that reduce greenhouse gas emissions, such as improving energy efficiency, developing carbon capture and storage (CCS) technologies, and producing low-carbon fuels. In 2024, Shell allocated approximately 45% of its R&D expenditure, which was around $497 million, specifically to decarbonization projects .

In what ways is Shell using carbon capture, utilization, and storage (CCUS) technologies in its operations, and what are the expected benefits?

Shell is using carbon capture, utilization, and storage (CCUS) technologies to capture emissions from its facilities and to enhance oil recovery by reusing fields. These technologies help to manage and reduce emissions from Shell's operations. The expected benefits include significant reductions in carbon emissions, aiding Shell's transition to lower-carbon energy production .

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Shell Annual Report 2024

Shell's 2024 Annual Report highlights its compliance with the EU Corporate Sustainability Reporting Directive (CSRD) and includes a Sustainability Statements section for the first time. The report outlines Shell's commitment to reducing emissions and transitioning to low-carbon energy, achieving significant progress towards its targets. Additionally, it emphasizes Shell's innovative projects, such as carbon capture and storage initiatives and advancements in sustainable aviation fuel production.

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1K views481 pages

Shell Annual Report 2024

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In anticipation of the Netherlands' transposition of The CSRD requires certain European and non-European

the EU Corporate Sustainability Reporting Directive companies (including Shell plc due to its listing on Euronext
(CSRD) into national law, Shell has for the first time Amsterdam) to make disclosures on environmental, social
in this report included a Sustainability Statements and governance topics in accordance with the ESRS. We
section (pages 341-440), prepared on a voluntary have applied the structure proposed in the ESRS, adopted
basis in accordance with the CSRD and European "incorporation by reference" and sought to integrate the
Sustainability Reporting Standards (ESRS). disclosures in other sections of this report where appropriate
and permitted. Section headers in the Sustainability Statements
The Sustainability Statements section forms an follow the structure of the ESRS. Terms and definitions used in
integral part of the management report. [A] the text are defined by Shell unless explicitly stated otherwise.

[A] The consolidated management report, as referenced in the CSRD, includes the
strategic report and governance sections of the Annual Report and Accounts.

Contents
Introduction 122 Safety Sustainability Statements
iii Terms and abbreviations 125 Living by our values 342 General
127 Our approach to sustainability 342 General disclosures (ESRS 2)
Strategic Report 134 Risk management and risk factors 364 Environment
2 Chair's message 145 Principal decisions & stakeholders 364 Climate change
4 Chief Executive Officer's review (Section 172(1) statement) 377 EU Taxonomy
6 Shell's strategy 391 Pollution
6 This is Shell Governance
395 Water and marine resources
8 How we create value 150 Introduction from the Chair
397 Biodiversity and ecosystems
10 Our strategy 152 The Board of Shell plc
404 Resource use and circular
157 Executive Committee economy
14 Progress against our longer-
term business targets 159 Governance framework 409 Social
16 Outlook 161 Board activities 409 Own workforce
18 Performance in the year 165 Understanding and engaging with 414 Workers in the value chain
18 Performance indicators our stakeholders
419 Affected communities
20 Generating shareholder value 167 Workforce engagement
425 Governance
21 Group results 169 Board evaluation
425 Business conduct
24 Liquidity and capital 170 Statement of compliance with the
427 Tax and other payments
resources UK Corporate Governance Code
to governments
28 Market overview 171 Nomination and Succession
429 Safety
Committee
31 Integrated Gas 434 Supplementary data
175 Sustainability Committee
38 Upstream 438 Independent Auditor's report
176 Audit and Risk Committee Report
47 Oil and gas information related to the Sustainability
188 Directors' Remuneration Report Statements
55 Marketing
191 Annual Report on Remuneration
60 Chemicals and Products
208 Directors' Remuneration Policy Additional Information
68 Renewables and Energy
Solutions 216 Other regulatory and statutory 442 Shareholder information
information 445 Non-GAAP measures
72 Corporate
reconciliations
74 Other central activities
Financial Statements and 454 Appendix: Significant subsidiaries
76 Our journey to net zero Supplements and other related undertakings
77 Energy transition plans 225 Independent Auditor's Report (audited)
93 Climate-related metrics related to the Consolidated and v About this Report
and targets Parent Company Financial
vii Financial calendar
Statements
107 Other regulatory disclosures
240 Consolidated Financial Statements
109 Respecting nature
313 Supplementary information - oil
114 Powering lives
and gas (unaudited)
115 Our people
333 Parent Company Financial
120 Contribution to society Statements
Terms and abbreviations
Currencies EMTN Euro medium-term note
$ US dollar
EPS earnings per share
€ euro
EPSA exploration and production sharing agreement
£ sterling
EPTB Environmental Products Trading Business
ESRS European Sustainability Reporting Standards
Units of measurement ETS24 Energy Transition Strategy 2024
acre approximately 0.004 square kilometres
EV Electric vehicle
b(/d) barrels (per day)
FCF free cash flow
bbl barrel
FID final investment decision
boe(/d) barrels of oil equivalent (per day); natural gas volumes are
GAAP generally accepted accounting principles
converted into oil equivalent using a factor of 5,800 scf
per barrel GHG greenhouse gas
GJ gigajoule HSSE health, safety, security and environment
GW gigawatt IAS International Accounting Standards
kboe(/d) thousand barrels of oil equivalent (per day); natural gas IEA International Energy Agency
volumes are converted into oil equivalent using a factor IFRS International Financial Reporting Standard(s)
of 5,800 scf per barrel
IOGP International Association of Oil & Gas Producers
kWh kilowatt-hours
IPCC Intergovernmental Panel on Climate Change
mb/d million barrels per day
Ipieca International Petroleum Industry Environmental Conservation
megajoule a unit of energy equal to one million joules
Association
MMBtu million British thermal units
IRM Information Risk Management
mtpa million tonnes per annum
ISO International Organisation for Standardisation
MW megawatt
ISSB International Sustainability Standards Board
MWh megawatt-hours
KPI Key performance indicator
Nm3 normal cubic metre
LGBT+ Lesbian, gay, bisexual and transgender
per day volumes are converted into a daily basis using a calendar year
LTIP Long-term Incentive Plan
scf(/d) standard cubic feet (per day)
NBS Nature-Based Solutions
TWh terawatt-hours
NCI net carbon intensity
NGO Non-governmental organisation
Products NOMCO Nomination and Succession Committee
GTL gas-to-liquids
NZE Net zero emissions
LNG liquefied natural gas
OECD Organisation for Economic Co-operation and Development
LPG liquefied petroleum gas
OFCF organic free cash flow
NGL natural gas liquids
OGCI Oil and Gas Climate Initiative
OML oil mining lease
Miscellaneous OPEC Organization of the Petroleum Exporting Countries
Act UK Companies Act 2006
OPEC+ 12 members of the OPEC and 11 other non-OPEC members
ADS American Depositary Share
OPL oil prospecting licence
AGM Annual General Meeting
PSC production-sharing contract
API American Petroleum Institute
PSP Performance Share Plan
APM Alternative performance measure
QRA Quarterly Results Announcement
ARC Audit and Risk Committee
R&D Research and development
CCS carbon capture and storage
REMCO Remuneration Committee
CCS earnings earnings on a current cost of supplies basis
RNG Renewable natural gas
CFFO cash flow from operating activities
RT real terms
CISO Chief Information Security Officer
SEAM Safety, Environment and Asset Management
CMD Capital Markets Day
SEC US Securities and Exchange Commission
CMF carbon management framework
SGBP Shell General Business Principles
CO2 carbon dioxide
SIAI Shell Internal Audit and Investigations
CO2e carbon dioxide equivalent
SP social performance
CRC Carbon Reporting Committee
SUSCO Sustainability Committee
CRT Commercial Road Transport
TCFD Task Force on Climate-related Financial Disclosures
CSRD Corporate Sustainability Reporting Directive
TSR total shareholder return
DE&I Diversity, equity, and inclusion
WACC weighted average cost of capital
EC Executive Committee
WTI West Texas Intermediate
Indicates information that supports TCFD disclosure

iii Shell Annual Report and Accounts 2024

Strategic
Report
2 Chair's message
4 Chief Executive Officer's review
6 Shell's strategy
6 This is Shell
8 How we create value
10 Our strategy
14 Progress against our longer-term business targets
16 Outlook
18 Performance in the year
18 Performance indicators
20 Generating shareholder value
21 Group results
24 Financial framework
28 Market overview
31 Integrated Gas
38 Upstream
47 Oil and gas information
55 Marketing
60 Chemicals and Products
68 Renewables and Energy Solutions
72 Corporate
74 Other central activities
76 Our journey to net zero
77 Energy transition plans
93 Climate-related metrics and targets
107 Other regulatory disclosures
109 Respecting nature
114 Powering lives
115 Our people
120 Contribution to society
122 Safety
125 Living by our values
127 Our approach to sustainability
134 Risk Management and Risk factors
145 Principal decisions & stakeholders Section 172(1)
statement

1 Shell Annual Report and Accounts 2024

Strategic Report

Chair's message
liquefied natural gas (LNG) and deep-water oil and gas production with
some important new projects. We announced a final investment decision
for Manatee, an undeveloped gas field in Trinidad and Tobago, which
will have a key role in providing gas to the country's Atlantic LNG facility.

Our deep-water Whale platform in the Gulf of America started

production in January 2025. At its peak, we expect that Whale will
produce around 100,000 barrels of oil equivalent a day, enough to fuel
the daily journeys of 2.7 million cars in the USA. It will operate with 30%
lower carbon intensity over its life cycle than Vito, another US deep-water
platform. In February 2025, our next-generation Penguins facility started
production in the North Sea. It will produce mostly oil but also enough
gas to heat around 700,000 UK homes a year, with around 30% lower
operational emissions than its predecessor, Brent Charlie [A].

Less emissions
We kept our focus on reducing emissions as we worked to become a
net-zero emissions energy business by 2050. In 2024, we achieved our
short-term target to reduce the net carbon intensity of the products we
sell, compared with 2016. We achieved this mainly by reducing sales
of oil products and growing power sales.

In 2024, we continued to do what Shell does best, By the end of 2024, we had achieved 60% of our target to halve
connecting energy and people. Scope 1 and 2 emissions from our operations by 2030, compared
with 2016 levels.
In total, we served around 33 million customers at Shell-branded retail
sites every day, and around 1 million business customers across more We continued to transform our business. In January 2024, we
than 70 countries. We used the power of our people, brand, technology announced the decision to stop processing crude oil into petrol, jet
and trading network to provide our customers with the oil and gas they fuel and diesel at the Wesseling site of our Energy and Chemicals Park
need today. At the same time, we increasingly helped them to make Rheinland, Germany, and to produce premium oils instead. In April
low-carbon choices, from biofuels to charging for electric vehicles. 2024, we opened our bioLNG liquefaction plant in Germany, which
can produce enough bioLNG to fuel around 5,000 LNG trucks a year.
In this second year under our Chief Executive Officer, Wael Sawan,
Technology and innovation
Shell went from strength to strength. We improved Shell's operational
Innovation remains vital for a successful transition to low-carbon
performance, and made good progress against the financial and
energy. In 2024, we spent around $500 million on projects that
climate targets and ambition we set out at our Capital Markets Day
contributed to decarbonisation, almost half of our total spending on
in 2023 and in our Energy Transition Strategy 2024.
research and development. In December, I saw some of that work for
myself when I visited the Energy Transition Campus Amsterdam in the
We demonstrated that our strategy to deliver more value with less
Netherlands. I was especially excited to see how our research is
emissions is producing strong results, and compelling shareholder
building on Shell's leadership in gas-to-liquids (GTL) technology,
returns. By the beginning of 2025, we had announced $3 billion
something we pioneered almost half a century ago.
or more in buybacks for 13 consecutive quarters.
Today, the Pearl GTL gas-to-liquids plant in Qatar uses natural gas to
New projects
produce an alternative fuel to conventional diesel for transport, as well
Shell has pioneered ways to provide energy for more than a century.
as oils and lubricants. We have also used GTL technology to develop
As the energy system and energy mix keep evolving, we will continue
immersion cooling fluids for data centres. These fluids reduce costs,
to provide the energy people need through the complex transition to
energy consumption and emissions compared with conventional
low-carbon energy.
cooling. This will be increasingly important as the growth in artificial
intelligence leads to greater use of energy-intensive data centres.
We will help to keep the world moving with oil and gas, while
developing the low-carbon alternatives our customers need to Now our scientists in Amsterdam are researching how to use that
decarbonise. To that end, we have built on our leadership positions in same GTL technology to produce sustainable aviation fuel made
from renewable power and captured carbon on a commercial scale.
[A] Based on a five-year average 2016–2020 for Brent Charlie emissions, and the highest
expected emissions for Penguins. In another exciting development for the energy transition, they are also

2 Shell Annual Report and Accounts 2024

Strategic Report | Chair's message continued

looking at how to produce synthetic methane, made from renewable

hydrogen and captured carbon, to decarbonise the production of LNG.

We are creating the business case for other pioneering solutions, such
as carbon capture and storage, which will be critical for the energy
transition. In 2024, we took a final investment decision for two projects
in Canada that will capture and store carbon from our Shell Energy
and Chemicals Park Scotford in Alberta. These build on the success
of our Quest CCS project in Canada which has captured more than
9 million tonnes of CO₂ since 2015.

The Northern Lights joint venture with Equinor and TotalEnergies in

Norway is developing the world's first project to offer commercial
carbon transport and storage as a service. The first CO2 shipments
are expected in 2025.

Unique capabilities
Our strengths go way beyond production. Through our integrated
portfolio, we can buy and blend energy products to meet our customers'
needs. We can use our unique capabilities, including trading, to connect
energy to our customers through the energy transition.

For example, we became one of the world's largest traders and

suppliers of sustainable aviation fuel in 2024. We achieved this
because of our long-term agreements with producers, the strength
of our customer relationships, and strategic investments in logistics
around key terminals and airports.

In 2024, we continued to build an organisation with an outstanding

brand, as well as outstanding people, and trading, technology and
innovation capabilities. Today, we sell nearly three times the energy
products that we produce, meeting our customers' demand for oil
and gas and low-carbon products through our integrated model.

Working together
We believe that the energy transition will be achieved by governments,
companies like Shell, and customers all working together. Governments
need to put in place effective policies to progress the energy transition,
and energy producers need to help develop the solutions of the future.
The transition also requires demand from customers who are willing to
pay for low-carbon energy. We are playing our part. I am confident
that Shell can continue to bring its deep experience to help advance
the energy transition.

In 2024, we demonstrated that you can still be sure of Shell. As a

customer, you can be sure that Shell will provide you with the right
products and solutions today and through the energy transition. And
as an investor you can be sure that this is the right management team
with the right strategy, setting Shell up for success in the years to come.
1. The Whale deep-water platform started production in January 2025.
Sir Andrew Mackenzie 2. The Northern Lights joint venture in Norway is developing the world's first project
Chair to deliver commercial carbon transport and storage as a service.

3. The Penguins facility in the North Sea will produce enough gas to heat around
700,000 UK homes a year.

3 Shell Annual Report and Accounts 2024

Strategic Report

Chief Executive
Officer's review
In 2024, the world experienced continued geopolitical
volatility. The Russia-Ukraine war entered its third year
and conflict escalated in the Middle East, bringing
personal tragedy to many. It was a time of political
change, with elections in more than 60 countries.
Energy security and affordability rose higher on political agendas, even
as the share of renewable energy grew. This came into sharp focus
during Europe's winter of 2024. Wind and solar power reached record
levels in the region, while liquefied natural gas (LNG) played a critical
role in keeping homes and businesses running when there was not
enough wind or sunlight.

With global demand for energy increasing, coupled with the challenge
of climate change, Shell continues to focus on its strategy to deliver
more value with less emissions. We believe the world needs to
maintain secure and affordable energy supplies while moving to
low-carbon energy.

In 2024, my second year as Chief Executive Officer, I am proud of

the progress we have made in putting our strategy into action. I want
2024 at a glance to thank everyone at Shell for their contribution. We are growing
shareholder returns, while working to reduce emissions from our
1.5 90.0 operations and products. We are positioning Shell to win through the
Serious injury, illness and Tier 1 and Tier 2 energy transition on our journey to become a net-zero emissions energy
fatality frequency (SIF-F) in process safety incidents business by 2050.
Shell-operated ventures (2023: 63.0)
(2023: 2.6) Integrated energy company
Our strategy aims to grow our world-leading LNG business, which
$16.5 billion $23.7 billion provides flexibility alongside renewable energy, and a lower-carbon
Income for the period Adjusted Earnings* alternative to coal. We expect that supplying LNG will be the biggest
(2023: $19.6) (2023: $28.3) contribution we will make to the energy transition over the next
decade, as we help to build the energy system of the future.
$54.7 billion $39.5 billion
Cash flow from operating Free cash flow* Building on our deep knowledge and strong partnerships, we are also
activities (2023: $54.2) (2023: $36.5) responsibly producing the oil that will be needed for decades to come,
with a focus on cost and carbon competitiveness. We intend to be the
$19.6 billion $21.1 billion most customer-focused energy marketer and trader in the world,
Capital expenditure Cash capital expenditure* providing people with the energy they need to power their lives and
(2023: $23.0) (2023: $24.4) businesses. We are developing commercial models for low-carbon
solutions, such as biofuels. My vision is for Shell to become the world's
$13.9 billion $8.7 billion leading integrated energy company, delivering impact at scale,
Share buyback programme Dividends paid connecting energy and people, matching supply to demand.
(2023: $14.6) (2023: $8.4)

We have set out to transform Shell into a more focused and more
58 million tonnes 71 gCO2e/MJ competitive energy business, and I am pleased to say that in 2024,
Scope 1 and 2 emissions CO2e Net carbon intensity (NCI) we moved forward at pace in that direction. Following our principles
(2023: 57) (2023: 72) of performance, discipline and simplification, we have made good
progress against the targets and ambition we presented at our Capital
Performance against our longer-term targets (see pages 14-15).
Markets Day in 2023 and in our Energy Transition Strategy 2024.
Key performance indicators (see pages 18-19).
* Non-GAAP measure (see page 445).

4 Shell Annual Report and Accounts 2024

Strategic Report | Chief Executive Officer's review continued

More value When it comes to our sales, we achieved our short-term target to
In 2024, we achieved our target to reduce structural costs* by $2-3 reduce the net carbon intensity of the energy products we sell with
billion by the end of 2025, against 2022, one year ahead of time. a 9% reduction compared with 2016, moving us closer to our target
We continued to make disciplined investments, and difficult choices, of a 15-20% reduction by 2030 compared with 2016 levels.
such as pausing construction of our biofuels plant in Rotterdam, the
Netherlands, to assess the most commercial way forward. By the end of 2024, we had installed more than 70,000 public charge
points for electric vehicles, a year ahead of schedule. I am encouraged
We are building a strong track record of performance. Shell reported by the progress we are making in carbon capture and storage, with
the second-highest cash flow from operations in our history in 2024, plans for two linked projects in Canada. In Norway, our Northern Lights
outperforming our target for free cash flow growth. By the end of the joint venture is ready to offer commercial carbon transport and storage
year, we had delivered at the top end of our target to distribute as a service. I saw for myself another exciting initiative, our first
30-40% of cash flow from operations to our shareholders*, mainly megawatt charger for electric trucks and ships in Amsterdam.
through buybacks.
Beyond our operations, 2024 was an important year because the
Our Prelude floating LNG facility off the coast of Australia had Court of Appeal of The Hague dismissed Milieudefensie's claim against
record production in 2024, as did our QGC natural gas business in Shell. I believe the decision was the right one for the energy transition
Queensland, Australia, boosting our operational performance. We and our company. On February 11, 2025, Milieudefensie announced
added major new projects. We took a final investment decision on that it was taking its case to the Netherlands' Supreme Court. I am
Bonga North, off the coast of Nigeria, which is expected to start up by confident in the strength of our position.
the end of the decade and reach peak production of 110,000 barrels
of oil equivalent a day. Our US deep-water platform Whale started Shell people
production in January 2025, with estimated peak production of The safety of everyone at Shell remains our top priority. I am deeply
100,000 barrels of oil equivalent a day. saddened by the deaths of four people working for Shell in 2024
and early 2025. These tragic incidents took place in India, Malaysia,
Our agreement to acquire Pavilion Energy in Singapore further the Netherlands and Nigeria. My heart goes out to the families and
strengthened our LNG portfolio with more sales and flexibility. friends of these four people. We must continue to protect everyone
I also signed an agreement in Abu Dhabi to invest in the Ruwais LNG working for Shell, and we will learn from these and other incidents.
project [A], which is designed to operate with lower carbon intensity
Shell's success depends on our people. I experienced the dynamism
than traditional LNG plants. LNG Canada is expected to start
and diversity of our teams when I visited our operations in Brazil,
producing in the middle of 2025, the largest private-sector energy
China, India, Kuwait, Oman, Poland, Qatar, and the USA. I was
investment in Canada's history.
impressed by how they are embracing the principles of performance,
discipline and simplification in their everyday work.
Another example of our transformation is the sale of Shell Pakistan,
which is helping us to achieve our aim to divest around 500 retail sites
I also spent Safety Day with our team at the Shell Polymers Monaca
every year until 2025.
chemical plant in the USA. Once again, I had the opportunity to
witness first-hand how far we have advanced our safety culture and
Less emissions
processes in recent years.
In 2024, we worked hard towards our climate goals. We abated more
than 1 million tonnes of CO2 from our operations through projects such Investment case and partner of choice
as reduced flaring and the use of renewable electricity. This allowed us I am convinced that we are the best positioned energy company to
to keep our Scope 1 and 2 emissions roughly flat compared with 2023, navigate the energy transition because of our people, our connections
despite increased oil and gas production and asset utilisation. By the to customers, and our portfolio of world-class assets. We are building on
end of 2024, we had achieved 60% of the reduction required to meet these strengths by transforming Shell. We are becoming a more focused
our 2030 Scope 1 and 2 target. and competitive business, so that we are the investment case and partner
of choice through the energy transition. We had another strong year in
Shell remains a leader in reducing emissions of methane, a potent 2024, and we have more to do. I am confident that our strategy,
greenhouse gas that can be released during oil, gas and LNG executed with conviction and determination, is working. We are on the
production. By the end of 2024, we had reduced total methane path to becoming the world's leading integrated energy company.
emissions from assets under our operational control by 76% compared
with 2016. Total routine flaring from our upstream oil and gas assets Wael Sawan
remained stable in 2024, and, as of January 1, 2025, we no longer Chief Executive Officer
routinely flare from these assets.

[A] Subject to completion.

* Non-GAAP measure (see page 445).

5 Shell Annual Report and Accounts 2024

Strategic Report | Shell's strategy

This is Shell
Shell is a global group of energy and petrochemical monitors our culture and how it is embedded in our attitudes and
behaviours, including in our activities and stakeholder relationships.
companies, employing around 96,000 people [A]
across more than 70 countries. We have activities To realise our vision, we are transforming Shell to become a more
ranging from oil and gas exploration and production focused and competitive business. Our extraordinary community of
to the marketing of fuels and lubricants, and research talent will approach the next decade of the energy transition with
and development. We are increasingly offering our courage and determination. We expect Shell's people to care about
each other, our work, and about doing business the right way with a
customers low-carbon energy solutions.
focus on safety, people and sustainability.
For more than a century, Shell has connected people and energy. We
The Shell General Business Principles set out our responsibilities to all
provide the energy people need to fuel their homes, hospitals, schools,
our stakeholders. As part of these principles, we commit to contribute
vehicles, machinery and factories. Our purpose is to power progress
to sustainable development, and we have embedded this commitment
together, by working with each other, our customers and our partners.
into our strategy, our processes and decision-making. This requires
Our vision [B] is to be the world's leading integrated energy company --
balancing short- and long-term interests, integrating economic,
delivering impact at scale, connecting energy and people, matching
environmental and social considerations into business decision-making.
supply to demand.
As we implement our strategy, we will also maintain our relentless focus
on achieving our Goal Zero ambition: to do no harm to people and to
Shell's strategy is to deliver more value with less emissions as we work
have no leaks across operations. The Shell Code of Conduct explains
to become a net-zero emissions business by 2050. As we navigate the
how employees, contractors and anyone else acting on behalf of Shell
energy transition through the next decade, we will leverage our global
must behave.
footprint, the trust in our brand, and our innovation and technology
capabilities to be the energy company that customers and countries
Strong relationships
choose to be their partner.
We seek to build strong, trusted relationships with all our stakeholders,
including our approximately 1 million commercial and industrial
Our people and values
customers, and the around 33 million people we serve daily at our
Whether they work on our platforms and pipelines, or in our offices
Shell-branded retail stations. Our stakeholders include: our employees,
and research labs, people are key to our success. They collectively
contractors and pensioners; the investor community; customers; our
determine our culture and we expect them to behave according
suppliers and strategic partners; regulators and governments; non-
to our values: honesty, integrity and respect for people.
governmental organisations, civil society, academia and think tanks;
and the communities where we work.
We expect everyone at Shell to also comply with relevant laws and
regulations to help us conduct business in an ethical and transparent [A] At December 31, 2024, and including portfolio companies.
manner. We firmly believe in the fundamental importance of trust, [B] A vision statement defines the desired future state of a company rather than a series
openness, teamwork and professionalism. The Board assesses and of firm, binding commitments.

Our core values Our guiding principles

Honesty Integrity Respect for people Performance Discipline Simplification

We encourage our We empower our We embrace We maintain a We allocate We streamline the

employees and employees and diversity, equality relentless focus shareholders' way we do things,
business partners business partners and inclusivity. on improving capital with removing complexity,
to speak up and to make the right operational discipline and make and manage the
celebrate those who decisions. and financial clear choices about portfolio to support
do the right thing. performance. where we can disciplined capital
create value. allocation.

Our Goal Zero We aim to do no harm to people and to have no leaks across our operations. We call this our Goal Zero ambition.
ambition Everyone working for Shell strives to achieve Goal Zero each day.

6 Shell Annual Report and Accounts 2024

Strategic Report | Shell's strategy | This is Shell continued

Our business directorates in 2024 Reporting segments

Integrated Gas and Upstream Integrated Gas explores for and extracts natural gas which we then process to produce
liquefied natural gas (LNG) or convert into gas-to-liquids (GTL) products. Our activities
include the operation of the upstream and midstream infrastructure that is needed to
deliver gas and gas products to the market. We earn revenues from the trading and
optimisation, marketing and distribution of LNG, GTL and natural gas. See pages 31-37
for a review of our performance.

Upstream explores for and extracts crude oil, natural gas and natural gas liquids. Shell
has activities in deep water and conventional oil and gas. The business also operates the
infrastructure necessary to transport the oil and gas to the market or to process it in our
integrated energy and chemicals parks. See pages 38-46 for a review of our performance.

Downstream, Renewables Marketing supplies fuels and lubricants, for transport, manufacturing, mining, power
and Energy Solutions generation, agriculture and construction. Shell is also a major blender and trader of
biofuels. Shell Mobility operates our retail network, including electric vehicle charging
and convenience retail. See pages 55-59 for a review of our performance.

Chemicals and Products includes manufacturing plants and refineries which we are
repurposing into energy and chemicals parks. We turn crude oil and other feedstocks into
products for households, industry and transport. The segment also includes the pipeline
business, trading and optimisation of crude oil, oil products and petrochemicals, and oil
sands activities. See pages 60-67 for a review of our performance.

Renewables and Energy Solutions generates, markets and trades power from wind, solar
and pipeline gas. The business also includes hydrogen production and marketing, commercial
carbon capture and storage (CCS) hubs, carbon credits and nature-based solutions to avoid
or reduce carbon emissions. See pages 68-71 for a review of our performance.

What sets us apart

Deep-water expertise We have almost five decades of deep-water expertise and continue to develop innovative designs for oil
and gas assets, replicating successful projects to deliver more value with less emissions. Our deep-water
business has a track record of sustained cash flow.

Integrated gas and LNG We have a world-leading LNG business with a sizeable portfolio, a global network of customers, extensive
capability shipping and storage assets, and access to regasification plants. Our diversified and global portfolio of
plants and terminals enhances our resilience to market shocks and allows us to capitalise on price volatility.

Technology and innovation Shell has a long history in technology and innovation. We have a global network of R&D centres and work
closely with our customers, suppliers and partners. We also collaborate with some of the world's leading
technology companies to deploy digital solutions at scale across our business.

Integrated business model – Shell produces energy and is also one of the world's largest and most experienced energy traders and
trading and optimisation suppliers. We can identify and meet a customer's needs quickly. Our value chains are enhanced by
purchases from third parties, and we have a leading global position in energy markets.

7 Shell Annual Report and Accounts 2024

Strategic Report | Shell's strategy Strategic Report | Shell's strategy | How we create value continued

How we
We aim to meet the world's growing need for more
and sustainable energy solutions in ways that are
economically, environmentally and socially responsible.

create value
Through our business activities we create value for our
shareholders, customers and wider society. This is a
non-exhaustive illustration of Shell's key business
activities that deliver the energy needed for today.

Our inputs [A] Business activities Outcomes and impacts for our stakeholders
Financial capital [A]
Equity attributable to Shell plc shareholders ($ billion) [B]:
Cash flow from operating activities
178 2023: 187 ($ billion):
Total debt ($ billion) [B]: 55 2023: 54
77 2023: 82 Free cash flow*
Net debt* ($ billion) [B]: ($ billion):
39 2023: 44 40 2023: 36
Average capital employed* ($ billion) [B] [E]: Shareholder distributions* [B]
($ billion):
225 2023: 234
23 2023: 23
Cash capital expenditure* ($ billion):
21 2023: 24 Adjusted Earnings* ($ billion):

Operations
24 2023: 28
Refinery and chemical plant availability:
Absolute emissions (Scope 1 and 2 –
92% 2023: 91% million tonnes of CO₂ equivalent):
Oil & gas production available for sale (kboe/d): 58 2023: 57 | 2016: 83
2,836 2023: 2,791
Net carbon intensity [C] (grams of
LNG liquefaction volumes (million tonnes): CO₂ equivalent per megajoule):
29 2023: 28 71 2023: 72 | 2016: 78
Our People Methane emissions intensity:
Number of employees (thousands) [B]:
0.04% 2023: 0.05%
96 2023: 103 Customer emissions from the use of our
Number of training days (thousands): oil products [D] (million tonnes CO₂
264 2023: 295 equivalent)
Relationships 491 2023: 517 l 2021: 569
Ranking in the Global 500 list of most valuable oil and gas
companies [C]:
1 2023: 1 Women employees in senior
leadership positions [E]:
Customers, joint arrangements, government relations, suppliers.
Number of operating countries [B]:
33% 2023: 32%
Total spend on goods and services*
>70 2023: >70
($ billion):
Intellectual capital
42 2023: 49
Research and development expenses ($ million):
1,099 2023: 1,287
Number of patents [B][D]:
8,677 2023: 8,829 Total waste disposed (million tonnes):
Natural resources 1.9 2023: 2.3
Proved oil and gas reserves (million boe) [B]: Operational spills of more than 100
kilograms (thousand tonnes):
9,620 2023: 9,787
1.23 2023: 0.37
Energy consumed (million MWh):
212 2023: 205
* Non-GAAP measure (see page 445).
** Non-GAAP
Non-GAAP measure
measure (see
(see page
page 445).
445). [A] In 2024 unless stated otherwise.
[A]
[A] In
In 2024
2024 unless
unless stated
stated otherwise.
otherwise. [B] Total shareholder distributions* were $23 billion, comprising $9 billion in
[B]
[B] At
At December
December 31,
31, 2024.
2024. cash dividends and $14 billion in share buybacks.
[C]
[C] Source:
Source: Brand
Brand Finance
Finance Global
Global 500.
500. [C] In 2024, we revised NCI from 79gCO2e/MJ (g) to 78g for 2016, and from
[D]
[D] Includes
Includes patents
patents granted
granted and
and pending
pending patent
patent applications.
applications. 74g to 72g for 2023. See page 98 for details.
[E]
[E] Reporting
Reporting methodology
methodology hashas been
been changed,
changed, see
see Non-GAAP
Non-GAAP measures
measures (page
(page 445).
445). Key performance indicators see page 18-19. [D] Scope 3, Category 11.
[E] At December 31, 2024.
Performance against our longer-term targets see page 14-15.

88 Shell
Shell Annual
Annual Report
Report and
and Accounts
Accounts 2024
2024 9 Shell Annual Report and Accounts 2024
Strategic Report | Shell's strategy

Our strategy
Our strategy is to deliver more value with less emissions.
Our vision [A] is to be the world's leading integrated energy company
and our strategy is to deliver more value with less emissions. We are
positioning Shell to become the investment case and partner of choice
through the energy transition.

More value
We are committed to enhancing value for our investors through
disciplined investments, enhanced shareholder distributions and
maintaining a strong balance sheet. Our focus remains on providing
secure and reliable products, both now and throughout the energy
transition, to meet the evolving needs of our customers. At Capital
Markets Day 2023 (CMD23), we outlined our specific targets, and the
progress we have made against these targets is presented on page 14.

Less emissions
We are committed to becoming a net-zero emissions energy business
by 2050. We have set climate targets and an ambition, outlined in our
Photo: Staff at Shell QGC's training centre in Chinchilla, Queensland, Australia.
Energy Transition Strategy 2024 (ETS24), to help us reach net zero.
ETS24 was approved by 78% of shareholders who voted at our Annual
General Meeting (AGM) in May. Progress against our climate targets We will deliver more value with less emissions by:
and ambition is presented on page 93. ￮ Growing our integrated gas and LNG business.
￮ Sustaining liquids production.
Shell aims to lead in the energy transition where we have competitive ￮ Focusing Downstream, Renewables and Energy Solutions.
strengths, see strong customer demand, and identify clear regulatory
support from governments. We will continue to provide our customers Growing our integrated gas and LNG business
with the energy and other products they need, and we will provide this We are investing in our gas production and growing our LNG business
affordably and reliably, while also increasingly offering them low- to deliver the secure energy the world needs. LNG is a critical fuel for
carbon energy solutions to help them decarbonise their activities. the energy transition because it is a lower-carbon alternative to coal in
power generation and can be easily transported to where it is needed.
Moving forward
In 2024, we delivered our strategy against the four themes of Sustaining liquids production
generating shareholder value, achieving net-zero emissions, respecting We aim to sustain liquids production of at least 1.4 million barrels a
nature and powering lives. These themes are presented on pages 12-13. day through to 2030 with increasingly lower carbon intensity. We are
focusing our exploration activities in locations where hydrocarbons
Like all businesses, we will continue to adapt how we implement our have already been discovered.
strategy as the world evolves. This adaptability is crucial for navigating
the dynamic energy landscape enabling long-term success. Focusing Downstream, Renewables
and Energy Solutions
Capital Markets Day on March 25, 2025, presents an update to our We are expanding our premium marketing businesses while
financial targets for investors. See pages 16-17. streamlining our portfolio with a focus on value over volume. We will
build on the options we have invested in for low-carbon growth through
[A] A vision statement defines the desired future state of a company rather than a series the energy transition. Our global customer reach and our supply and
of firm, binding commitments. trading capabilities position us well to deliver the low-carbon solutions
people and businesses need.

10 Shell Annual Report and Accounts 2024

Strategic Report | Shell's strategy | Our strategy continued

We are seeking to change the mix of energy products we sell to our As we implement our strategy, we will continue to focus on performance,
customers as their needs for energy change. We believe we can make discipline and simplification. This applies not only to our financial and
the greatest contribution to the energy transition by helping to enable operational outcomes, but also to safety and sustainability. Our Goal
our customers to switch to low-carbon energy products and services. Zero ambition is fundamental to the success of our company.

This is reflected in Shell's strategy to build a portfolio that seeks to: See "Safety" on page 122.
￮ develop low- and zero-carbon alternatives to traditional fuel,
including biofuels, and other low- and zero-carbon gases;
￮ provide more renewable power solutions to customers in select We believe that no business can succeed without an unwavering
markets; commitment to respecting the environment and the communities within
￮ work with customers across different sectors to help them which it works. At Shell, we seek to protect the environment, increase
decarbonise their use of energy, for example by substituting the our reuse and recycling, make a positive contribution to biodiversity
use of coal with LNG; and and use water and other resources efficiently. We also work to make
￮ address any remaining emissions from conventional fuels with a positive impact on people around the world, and power lives through
solutions such as CCS and high-quality carbon credits. our products and activities, and by supporting an inclusive society.

See "Respecting nature" on page 109, and "Powering lives" on page 114.

11 Shell Annual Report and Accounts 2024

Strategic Report | Shell's strategy | Our strategy continued

Generating Achieving net-zero

shareholder value emissions
We aim to generate more value for shareholders We have a target to become a net-zero emissions
through disciplined capital allocation, strong financial energy business by 2050 and will work with customers
performance and by maintaining a strong balance sheet. to help them decarbonise.
We seek to provide enhanced shareholder distributions through We are transforming our business, including selling more low-carbon
our progressive dividend policy and share buyback programmes. products and services. We are working with our customers and others
to help accelerate the energy transition. We advocate policies,
2024 performance legislation and regulation that will generate demand for investment
￮ Total shareholder distributions* were $23 billion, comprising in a low-carbon energy system.
$9 billion in cash dividends and $14 billion in share buybacks.
￮ Total shareholder distributions* were 41% of cash flow from 2024 performance
operating activities. ￮ Scope 1 and 2 emissions were down by 30% compared with the
￮ Cash flow from operating activities was $55 billion. 2016 reference year [A].
￮ Cash capital expenditure* was $21 billion. ￮ Methane emissions intensity of 0.04% continued to be below our
￮ Total debt was reduced to $77 billion and net debt* was 0.2% target.
$39 billion as of December 31, 2024. Net debt excluding leases* ￮ Net carbon intensity (NCI) decreased by 9.0% compared with the
was $10 billion. 2016 reference year and was within the 2024 target range.
￮ Structural cost reductions* were $3.1 billion from a 2022 baseline ￮ Routine flaring from upstream operations remained stable at 0.1
and against a $2-3 billion target by the end of 2025. million tonnes and, with effect from January 1, 2025, Shell no longer
￮ The annual dividend was $1.390 per share, and the quarterly carries out any routine flaring at its upstream operations.
dividend increased to $0.358 per share for the fourth quarter. ￮ Customer emissions from the use of our oil products (Scope 3,
Category 11) were reduced by 5% in 2024 to a total of 14%
Information on our progress against our longer-term targets included compared with 2021 [B].
at Capital Markets Day 2023 can be found on page 14.
As we implement our strategy, we will work to:
As we implement our strategy, we will work to: ￮ Achieve net-zero emissions by 2050 (Scope 1, 2 and 3).
￮ Enhance shareholder distributions from 30-40% to 40-50% of cash ￮ Reduce by 50% Scope 1 and 2 absolute emissions from activities
flow from operating activities* through the cycle. under operational control by 2030, compared with 2016 levels
￮ Increase the structural cost reduction* target from $2-3 billion by the on a net basis.
end of 2025 to a cumulative $5-7 billion by end of 2028, compared ￮ Achieve near-zero methane emissions intensity by 2030.
to 2022. ￮ Reduce net carbon intensity by 15-20% by 2030, compared with
￮ Invest for growth while maintaining capital discipline,with spend of the 2016 reference year.
cash capital expenditure lowered to $20-22 billion*per year from ￮ Reduce customer emissions from the use of our oil products by
2025-2028. 15-20% by 2030, Scope 3, Category 11 [B], compared with the
￮ Grow normalised free cash flow per share* on average by more 2021 reference year.
than 10% per year through to 2030.
Progress against our longer-term emissions targets can be found
on page 14 and in "Our journey to net zero" on page 93.

[A] Reduced from 83 million tonnes of CO2e in 2016 to 58 million tonnes of CO2e in 2024.
* Non-GAAP measure (see page 445). [B] Customer emissions from the use of our oil products (Scope 3, Category 11) were
517 million tonnes CO2e in 2023 and 569 million tonnes CO2e in 2021.

12 Shell Annual Report and Accounts 2024

Strategic Report | Shell's strategy | Our strategy continued

Powering Respecting
lives nature
We power lives through our products and activities, We seek to protect the environment, increase our reuse
and by supporting an inclusive society. and recycling, make a positive contribution to biodiversity
and use water and other resources efficiently.
We provide vital energy for homes, businesses and transport. We also
aim to create a desirable workplace that is accepting and inclusive and Our businesses use natural resources such as land and water for their
representative of the communities we are a part of. Additionally, our operations. Our activities can impact nature through discharges and
activities generate revenues for governments through the taxes and emissions to the environment, and through changes to the use of land
royalties we pay, and the taxes we collect on their behalf. and water. We assess and manage the impact of our operations on
local ecosystems and communities.
2024 performance
￮ In 2024, we spent around $42 billion on goods and services* 2024 performance
from suppliers around the world. ￮ We continued to embed respect for nature into our activities,
￮ In 2024, taxes paid* were $18 billion. standards and business processes, including by ensuring that
￮ In 2024, representation of women in Senior Leadership [A] grew these are reflected in our Safety, Environment and Asset
to 33%. Management (SEAM) Standards.
￮ As of December 31, 2024, 15% of Shell's Senior Management [B] ￮ In partnership with Monash University, we are executing an
identifies as being from an ethnic minority group. ecological restoration programme on Browse Island, Australia,
￮ Our 2024 Shell People Survey showed a result of 81 points out of to eradicate invasive alien species, improve reef health and
100 for all questions relating to diversity, equity and inclusion (DE&I). promote the return of breeding seabirds.
￮ At the Pearl GTL gas-to-liquids facility in Qatar, we diverted
As we implement our strategy, we will work to: waste to local cement kilns for use as clinker in cement production,
￮ Collaborate with suppliers that behave in an economically, thereby reducing use of raw materials and the amount of waste
environmentally and socially responsible manner. sent to landfill.
￮ Be a good neighbour through strong community engagement,
managing negative impacts from our activities and seeking to As we implement our strategy, we will work to:
enhance positive impacts [C]. ￮ Achieve net-zero deforestation from new activities
￮ Respect human rights as set out in the UN Universal Declaration of by replanting forests, while maintaining biodiversity and
Human Rights. conservation value.
￮ Continue to achieve 15% ethnic minority group representation in ￮ Achieve a net positive impact on biodiversity, based
Senior Management [B] by 2027. on reference year 2021, for new projects in critical habitats.
￮ Have at least one Board member from an ethnic minority ￮ Better understand the types of waste we generate and identify
background. options to increase circular approaches.
￮ Increase representation of women in senior leadership positions to ￮ Implement water stewardship principles across our businesses,
40% by 2030. including the sustainable management of fresh-water resources,
￮ Achieve gender balance on the Board, with at least one senior particularly in water-stressed areas.
Board position held by a woman.

[A] Senior Leadership is a Shell measure based on compensation grade levels. This measure is
distinct from "senior manager" as per statutory disclosure requirements. See "Our people" on
page 117.
[B] As per the latest Parker Review recommendations, Senior Management refers to Senior
Leadership based in the UK and is a Shell measure based on compensation grade levels.
[C] See Powering Lives for examples of how we seek to be a good neighbour.
* Non-GAAP measure (see page 445 ).

13 Shell Annual Report and Accounts 2024

Strategic Report | Shell's strategy

Progress against our

longer-term targets
In 2024, we continued to make good progress in delivering on the longer-term targets as set out at our Capital
Markets Day in June 2023 and in our Energy Transition Strategy 2024. We are ahead of schedule across the
majority of our key targets, delivering more value with less emissions.

More value
Targets included at Capital Markets Day 2023 [A]

Shareholder Price-normalised FCF

distributions 30-40% growth* > 6% per
of CFFO* through year through 2030 [C]
the cycle [B] ($ billion)
(%)

Shareholder distributions as % of CFFO is used to demonstrate Shell Price-normalised FCF growth demonstrates the growth in underlying
plc's progress on increasing returns to shareholders through the cycle. business performance and removes the impact of macroeconomic
price movements for a more comparable figure.
Total shareholder distributions* in 2024 of $23 billion comprised of $9
billion in dividends and $14 billion in share buybacks, representing 41% Average annual growth in price-normalised FCF of 27% since 2022
of CFFO. Average shareholder distributions since the end of 2022 of continued to outperform our targeted growth of more than 6% per
42% of CFFO, at the top of our target range of 30--40%. year. This reflects our improved operational performance, discipline
in cash capital expenditure and structural cost reduction.

Structural cost Price-normalised FCF

reduction* of $2-3 growth/share* > 10%
billion by end of 2025 per year through
[D] 2025 [C]
($ billion) ($/share)

Structural cost reduction is used to demonstrate how management The price-normalised FCF growth per share demonstrates the increase
drives cost discipline across the entire organisation by simplifying in cash distribution to shareholders and removes the impact of
our processes and portfolio, and streamlining the way we work. macroeconomic price movements for a more comparable figure.

Structural cost reduction* of $3.1 billion delivered since the end of Average annual growth in price-normalised FCF per share of 36% since
2022, one year ahead of our target date of end of 2025 and above 2022 continued to outperform our targeted growth of more than 10%
the range of $2-3 billion set in 2023. Of the cost reduction delivered, per year. This reflects our price-normalised FCF growth as well as a
$1.2 billion relates to portfolio changes and $1.9 billion relates to lower number of shares in issue as a result of our ongoing share
operational efficiencies across our businesses, a leaner corporate buyback programme.
centre, and faster decision-making in project development.

* Non-GAAP measure (see page 445).

[A] Targets announced at our Capital Markets Day 2025 are included in Outlook (See page
16)
FCF and shareholder distributions (taken into account as part of
[B] CFFO: cash flow from operating activities.
[C] FCF: free cash flow. Total shareholder return) are used when calculating Executive
[D] 2025 target reflects annualised savings achieved by end-2025. Directors' remuneration.

14 Shell Annual Report and Accounts 2024

Strategic Report | Shell's strategy | Progress against our longer-term targets continued

Less emissions
Targets included in our Energy Transition Strategy 2024

Net-zero emissions Halving Scope 1 and 2

by 2050 (Scope 1, emissions by 2030
2 and 3) [D], [E] under operational
(million tonnes of CO2e) control (2016
baseline) [D]
(million tonnes of CO2e)

Net-zero emissions demonstrate our progress towards achieving our We have set a target to halve the emissions from our operations
target to become a net-zero emissions energy business by 2050. (Scope 1) and the energy we buy to run them (Scope 2) by 2030
compared with 2016 levels, on a net basis.
Net absolute emissions continued to decrease in 2024, principally
driven by a reduction in our sales of oil products. Combined Scope 1 and 2 emissions in 2024 reflect a 30% reduction
compared with the 2016 baseline. The slightly higher emissions
compared to 2023 were due to higher utilisation and production,
offset by reductions from abatement projects.

Reduce the net Eliminate routing flaring from upstream operations by 2025
carbon intensity (NCI) [D], [G] and achieve near-zero methane emissions by 2030
of the products we [D], [H]
sell by 15-20% by
2030 [D], [F]
(gCO2e/MJ) Routine flaring Methane emissions intensity
(million tonnes) (%) [I]

The NCI metric is used to track progress in reducing the overall carbon
intensity of the energy products we sell, compared with a 2016 baseline.
NCI is the average intensity, weighted by sales volume of the energy
products we sell. With a reduction of 9.0% compared with the 2016
baseline, our interim target to reduce our NCI by 9-12% in 2024 is met.
In 2024, total routine flaring from our upstream oil and gas assets
remained stable compared with 2023. From January 1, 2025, our
The decrease in NCI compared with 2023 is mainly driven by a
target of ending routine flaring from upstream operations has been met
reduction in our sales of oil products, continued growth in our power
(independent of the March 13, 2025 completion of the sales of SPDC).
sales and a reduction in average oil product intensity.
We continued to deliver methane emissions intensities well below our
[D] See "Our journey to net zero" on pages 76-108. 0.2% target.
[E] Estimated total GHG emissions included in NCI (net) were revised from 1,645 to 1,615
million tonnes of CO2e for 2016, from 1,240 to 1,220 million tonnes of CO2e for 2022
In addition to these targets we have an ambition to reduce the
and from 1,185 to 1,158 million tonnes of CO2e for 2023. See page 98 for details.
[F] Grams of carbon dioxide equivalent per megajoule. In 2024, we revised NCI from customer emissions from the use of our oil products by 15-20% by
79gCO2e/MJ (g) to 78g for the 2016 base year, from 76g to 75g for 2022 and from 2030, compared with 2021 (Scope 3, Category 11). See "Our journey
74g to 72g for 2023. See page 98 for details.
[G] Subject to completion of the sale of SPDC. to net zero" on page 102.
[H] On an intensity basis.
[I] Methane emissions intensity of Shell-operated oil and gas assets with marketed gas.
This target is used to determine Executive Directors' remuneration.

15 Shell Annual Report and Accounts 2024

Strategic Report | Shell's strategy

Outlook
Capital Markets Day on March 25, 2025, presents Financial discipline and strategic focus
We will maintain our focus on performance, cost and capital discipline,
an update to our financial targets for investors.
investing in areas of competitive strength to maximise returns.
Our vision [A] is to be the world's leading integrated energy company.
Updates to our financial targets:
￮ Enhance shareholder distributions from 30--40% to 40--50% of cash
Shell is transforming to become simpler, more resilient and competitive.
flow from operations* through the cycle, continuing to prioritise
We want to become the world's leading integrated gas and LNG
share buybacks while maintaining the 4% a year progressive
business and the most customer-focused energy marketer and trader,
dividend policy [B].
while sustaining a material level of liquids production.
￮ Increase the structural cost reduction* target from $2--3 billion by
the end of 2025 to a cumulative $5--7 billion by the end of 2028,
We are building on the significant progress we have made in executing
compared with 2022.
our strategy to deliver more value with less emissions. As we do this,
￮ Invest for growth while maintaining capital discipline with cash
we will maintain our focus on performance, discipline and simplification.
capital expenditure* lowered to $20--22 billion a year for
We aim to grow returns for shareholders, while reducing our emissions
2025--2028 compared with $21 billion in 2024.
and helping our customers reduce theirs.
￮ Grow normalised free cash flow per share* on average by more
than 10% a year through to 2030.
To successfully implement our strategy, we will take a value-led
approach through a financial framework which enhances shareholder [A] A vision statement defines the desired future state of a company rather than a series
distributions, and maintains discipline in capital allocation and a of firm, binding commitments.
balance sheet with a strong investment grade rating.

Shell financial framework: Capital Markets Day 2025

Balanced capital
allocation

Total distributions Cash capital expenditure* (cash capex)

Enhanced shareholder distributions Disciplined investment
40 - 50% of CFFO* through the cycle $20 - 22 billion p.a. 2025-2028

Downstream, Renewables
Prioritising buybacks Integrated Gas and
Dividend consistency and Energy Solutions
13 consecutive quarters Upstream cash capex
+4% announced at Q4'24 cash capex
>$3 billion ~ $12--14 billion
~ $8 billion

Intrinsic value creation

>10% p.a. normalised free cash Progressive dividend Capital reallocation
flow growth per share*through 4% annual increase [B] ≥10% ROACE* across all segments [C]
to 2030

Balance sheet
Maintain strong investment grade rating

[B] Subject to Board approval as well as shareholder approval at the 2025 Annual General Meeting.
[C] Price normalised ROACE on an Adjusted Earnings plus non-controlling interest basis.

* Non-GAAP measure (see page 445).

16 Shell Annual Report and Accounts 2024

Strategic Report | Shell's strategy | Outlook continued

The Board intends to enhance shareholder distributions through a Shell will continue to deliver more value with less emissions, growing
combination of dividends and share buybacks, maintaining a 4% in areas where we have competitive strengths. We believe we are
progressive dividend policy. providing a compelling investment case for our shareholders, now,
and into the future.
When the Board sets the level of shareholder distributions, it looks
at a range of factors including the macro environment, underlying Performance culture and commitment
business earnings and Group cash flows, the current balance We will continue to embed a performance culture, empowering our
sheet, future investment, acquisition and divestment plans, and people with greater ownership and faster decision-making, helping
existing commitments. to ensure safe and responsible operations.

Growth and resilience through the energy transition Shell is committed to delivering on our promises, transforming to
Shell believes the world is facing a complex, multi-decade energy become more resilient and competitive, and driving growth and
transition in which there will be growing demand for secure, affordable value creation through disciplined execution of our strategy.
and, increasingly, low-carbon energy. We are confident in our ability to navigate the energy transition
and deliver enhanced returns for our shareholders.
In liquefied natural gas (LNG), we will reinforce our leadership position
by growing sales 4--5% a year through to 2030.

We will also grow production across our combined Upstream and

Integrated Gas business by 1% a year to 2030, sustaining our 1.4
million barrels a day of liquids production with increasingly lower
carbon intensity.

And, we will drive cash flow resilience and higher returns in

Downstream, Renewables and Energy Solutions by:
￮ Pursuing focused growth in our high-return Mobility and Lubricants
businesses.
￮ Leveraging competitive strengths to drive profitable and scalable
businesses across our lower-carbon platforms [A] where we expect
to have up to 10% of capital employed by 2030.
￮ Unlocking more value from our strong portfolio of Chemicals assets.
This will be done by exploring strategic and partnership
opportunities in the USA and through high-grading and selective
closures in Europe. We believe this will enable the business to
prosper while improving returns and reducing capital employed
by 2030. Photo: Shell employees and contractors on the Vito deep-water platform in Ingleside,
Texas, USA.
[A] Shell's lower-carbon platforms include low-carbon fuels, carbon capture and storage, and
hydrogen, as well as power which includes renewable generation and gas fired power.

17 Shell Annual Report and Accounts 2024

Strategic Report

Performance
Financial delivery
Cash flow from

in the year
operating activities
($ billion)

Total cash receipts and payments associated with oil, gas, chemicals
and other product sales. This reflects our ability to generate cash to
service and reduce debt, invest and make shareholder distributions.

2024 performance
Driven mainly by a strong operational performance.

Performance indicators See "Liquidity and capital resources" on pages 24-27.

These indicators enable management to evaluate Shell's journey in the energy transition
Shell's performance against our annual Operating Plan.
LNG volumes
They are also used as part of determining Executive (million tonnes)
Directors' remuneration. See "Directors' Remuneration
Report" on pages 188-190.

Safety Shell's share of sales of equity LNG volumes from liquefaction plants
owned by Shell subsidiaries, Shell joint ventures and associates, and
Personal safety Shell's share of LNG produced from liquefaction plants which operate
(SIF-F cases per 100 under tolling arrangements with Shell.
million working hours)
2024 performance
LNG liquefaction volumes increased mainly due to lower maintenance
in Australia.
Serious injury, illness and fatality (SIF) is defined as a serious work-
related injury or illness that resulted in a fatality or permanent See "Integrated Gas" on page 31.
impairment. For SIF Frequency (SIF-F), the number of SIF employee
and contractor incidents is divided by 100 million working hours.
Reducing operational
2024 performance emissions
Despite improvement, the result reflects two fatalities and five serious (Scope 1 and 2; thousand
injuries reported in 2024, which is too many. We will continue to tonnes CO2)
strengthen the safety culture among our employees and contract staff.
Operational emission reductions achieved from GHG abatement
Process safety projects (e.g. reduced flaring, increased energy efficiency, and use
(number of Tier 1 and Tier 2 of renewable electricity), site closures and decommissioning or
events) transformations, resulting in sustained GHG reductions.

2024 performance
This was mainly due to catalyst improvements at Pearl GTL in Qatar,
Operational process safety events are defined as the unplanned or routine flaring reduction (Forcados Yokri Gas Project) in Nigeria and
uncontrolled release of any material from a process with the greatest optimisation of the liquefaction control system at QGC in Australia.
actual consequence resulting in harm to employees, contract staff, a
neighbouring community, or damage to equipment, or exceeding a See "Our journey to net zero" on pages 76-108.
threshold quantity.
Electric vehicle (EV)
2024 performance charge points
The increase in process safety tiered events was driven by our (thousand)
Downstream and Renewables businesses. We are actively addressing
these challenges by refining our operational strategies, renewing our
focus on fundamentals and leveraging new technologies to return to
the downward trend of previous years. Number of public electric vehicle charge points owned, controlled, or
Shell branded. The definition has been revised to exclude operated
For details on our safety performance see "Safety" on pages 122-124 only charge points. Prior year figures have been restated.

2024 performance
Performance was largely due to growth in top adoption markets, and
[A] 2022 adjustment on SIF-F from 1.7 to 2.0 is due to a change in classification for one injury we achieved our goal of installing 70,000 public charge points a year
after publication of the 2023 Annual Report and Accounts. ahead of schedule.

See "Marketing" on pages 55-59.

18 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Performance indicators continued

Operational excellence
Project delivery Upstream controllable
on schedule availability
(%) (%)

Our capability to complete major projects on time, measured as the Reflects our ability to optimally run our Upstream assets and includes
percentage of projects delivered on schedule. all Shell-operated assets and selected assets not operated by Shell
but for which Shell has strategic influence. It excludes the impact of
2024 performance extreme unexpected events that are outside our control, such as
Highlights for this year include the successful start-up of 10 projects, government restrictions and hurricanes. Reliability issues, turnarounds
half of which came on-stream ahead of schedule. and maintenance at own-operated or third-party facilities impact
controllable availability.

Project delivery 2024 performance

on budget Performance improved, particularly in Kazakhstan, Nigeria, Norway,
(%) Oman and the USA, partially offset by lower performance in the UK.

Midstream
Aggregate cost against the aggregate baseline for those projects, availability
where a figure greater than 100% means over budget. (%)

2024 performance
The result was impacted by the decision to pause on-site construction
at our biofuels plant in Rotterdam. The extent to which LNG assets are ready to process product as a
comparison with capacity, considering the impact of planned and
unplanned maintenance.
Customer satisfaction
(index) 2024 performance
Improved performance, especially in Australia, Qatar and Oman.

Refinery and chemical

plant availability
This quantitative measurement of customer experience performance (%)
is calculated as a simple average of customer satisfaction scores from
the global business-to-business transactional survey programme.

2024 performance Weighted average of plants' actual uptime, as a percentage of their

The result reflects focus on prioritisation, continuous improvement of maximum possible uptime, is a measure of the operational excellence
e-commerce platforms, and the resilience of our teams. of our refinery and chemical plant facilities. The weighting is based on
the capital employed, adjusted for cash and non-current liabilities.

Brand Share 2024 performance

Preference Improvements this year were mainly in Shell Polymers Monaca in the
(%) USA and Bukom Refinery in Singapore.

See "Chemicals and Products" on page 60.

The percentage of customers answering "Shell" when asked: "Assuming

that all the fuel station companies that you would consider are
conveniently located, which one company do you prefer most?" The
responses are taken from survey respondents in more than 60 countries
covering both fuel and non-fuel retail consumers.

2024 performance
Our Brand Share Preference continued to rise, performing ahead of
expectations in all regions.

19 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year

Generating
shareholder
value
We are committed to
enhancing shareholder
distributions with a
focus on performance,
discipline and
simplification.

20 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value

Group results
Key metrics Segment earnings*[A] [B]
$ million
$ million, except where indicated
2024 2023 2022
Income attributable to Shell plc
shareholders 16,094 19,359 42,309
Income for the period 16,521 19,636 42,874
Total segment earnings*[A] [B] 16,792 20,281 41,562
Adjusted Earnings*[A] [C] 23,716 28,250 39,870
Adjusted EBITDA*[A] 65,803 68,538 84,289
Cash flow from operating activities 54,687 54,191 68,414
Cash flow from investing activities (15,155) (17,734) (22,448)
Free cash flow* 39,533 36,457 45,965
Cash capital expenditure* 21,085 24,392 24,833
Operating expenses*[D] 36,917 39,960 39,476

Underlying operating expenses*[D] 35,707 39,201 39,456

ROACE on an Adjusted Earnings plus Non-
controlling interest basis* [E] 11.3% 12.8% 18.0%
Total debt at December 31 [F] 77,078 81,541 83,795
Net debt* at December 31 [F] 38,809 43,542 44,837
Gearing* at December 31 17.7% 18.8% 18.9%
Oil and gas production available for sale
(thousand boe/d) 2,836 2,791 2,864
Proved oil and gas reserves at December 31
(million boe) 9,620 9,787 9,578
Basic earnings per share ($) 2.55 2.88 5.76
Adjusted Earnings per share* ($) 3.76 4.20 5.43
Dividend per share ($) 1.3900 1.2935 1.0375
Segment Adjusted Earnings*[A] [B]
[A] Segment earnings, Adjusted Earnings and Adjusted EBITDA are presented on a current
cost of supplies basis. $ million
[B] See Note 7 to the "Consolidated Financial Statements" which includes an explanation of
the reporting segment changes applicable from 2024.
[C] Adjusted Earnings exclude the non-controlling interest component.
[D] The most comparable GAAP financial measure is Production and manufacturing expenses
(2024: $23 billion; 2023: $25 billion).
[E] Effective first quarter 2024, the definition has been amended and comparative information
has been revised. Refer to Non-GAAP measures section for details.
[F] See Note 21 to the "Consolidated Financial Statements".
* Non-GAAP measure (see page 445).

"2024 was another year of strong

performance across Shell, with
significant progress against all
our financial targets."
Sinead Gorman
Chief Financial Officer

21 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Group results continued

We made significant progress towards the financial Marketing

targets that we set at Capital Markets Day 2023. Our focus Marketing segment earnings* in 2024 were $1,894 million, compared
on performance, discipline and simplification has been key to with $3,057 million in 2023. The decrease was mainly driven by higher
achieving these results, enabling us to deliver more value with net impairment charges and reversals, net losses related to sale of
less emissions. In 2024, we reported the second-highest cash flow assets, unfavourable tax movements and higher depreciation charges.
from operations in our history. Our operational performance has These were partly offset by higher Marketing margins including higher
also improved. We have brought a number of projects online and unit margins in Lubricants and Mobility, partly compensated by lower
we have taken disciplined final investment decisions that will help Sectors and Decarbonisation margins. Segment earnings also
strengthen Shell further. reflected lower operating expenses.

Earnings 2024-2023 See "Marketing" on page 55.

Income attributable to Shell plc shareholders in 2024 was $16,094
million, compared with $19,359 million in 2023. With non-controlling
interest included, income for the period in 2024 was $16,521 million, Chemicals and Products
compared with $19,636 million in 2023. After current cost of supplies Chemicals and Products segment earnings* in 2024 were $1,757
adjustment, total segment earnings* in 2024 were $16,792 million, million, compared with $1,482 million in 2023. The increase was
compared with $20,281 million in 2023. mainly driven by lower net impairment charges and reversals, lower
operating expenses and higher Chemicals margins. These were partly
Adjusted Earnings* in 2024 were $23,716 million, compared with offset by lower Products margins, largely due to lower refining margins,
$28,250 million in 2023. The decrease was mainly driven by lower unfavourable movements relating to an accounting mismatch due
LNG trading and optimisation margins, lower realised prices, lower to fair value accounting of commodity derivatives and unfavourable tax
refining margins as well as lower trading and optimisation margins movements.
of power and pipeline gas in Renewables and Energy Solutions,
partly offset by lower operating expenses and higher realised
See "Chemicals and Products" on page 60.
Chemicals margins.

2024 income attributable to Shell plc shareholders also included net Renewables and Energy Solutions
impairment charges and reversals of $4,371 million, reclassifications Renewables and Energy Solutions segment earnings* in 2024 were an
from equity to profit and loss of cumulative currency translation expense of $1,229 million, compared with a gain of $3,089 million in
differences related to funding structures, unfavourable movements 2023. The decrease was mainly driven by lower favourable movements
relating to an accounting mismatch due to fair value accounting relating to an accounting mismatch due to fair value accounting of
of commodity derivatives, and charges related to redundancy and commodity derivatives, lower margins, largely from trading and
restructuring. These charges, reclassifications and movements are optimisation primarily in Europe due to lower volatility and higher
included in identified items amounting to a net loss of $7,365 million. net impairment charges and reversals, partly offset by lower
operating expenses.
Integrated Gas
Integrated Gas segment earnings* in 2024 were $9,590 million,
compared with $7,057 million in 2023. The increase was mainly See "Renewables and Energy Solutions" on page 68.

driven by lower unfavourable movements relating to an accounting

mismatch due to fair value accounting of commodity derivatives, lower
Corporate
net impairment charges and reversals, higher volumes, lower operating
Corporate segment earnings* in 2024 were an expense of
expenses, and favourable deferred tax movements, partly offset by the
$2,992 million, compared with an expense of $2,944 million in
combined effect of lower contributions from trading and optimisation
2023. The increase was mainly driven by reclassifications from equity
and lower realised prices.
to profit and loss of cumulative currency translation differences related
to funding structures, partly offset by favourable tax movements,
See "Integrated Gas" on page 31. favourable net interest movements and favourable currency
exchange rate effects.

Upstream
Upstream segment earnings* in 2024 were $7,772 million, compared See "Corporate" on page 72.

with $8,540 million in 2023. The decrease was mainly driven by

unfavourable tax movements, lower realised prices and higher
exploration well write-offs, partly offset by the comparative
favourable impact relating to gas storage effects.

See "Upstream" on page 38.

* Non-GAAP measure (see page 445).

22 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Group results continued

Prior year earnings summary Production available for sale

Our earnings summary for the financial year ended December 31, Oil and gas production available for sale in 2024 was 2,836 thousand
2023, compared with the financial year ended December 31, 2022, boe/d, compared with 2,791 thousand boe/d in 2023. This increase
can be found in the Annual Report and Accounts (page 32) and was mainly driven by growth from new fields and partly offset by
Form 20-F (page 30) for the year ended December 31, 2023, divestments.
as filed with the Registrar of Companies for England and Wales
and the US Securities and Exchange Commission, respectively. Oil and gas production available for sale [A][B]

Cash flow from operating activities Thousand boe/d

Cash flow from operating activities was $54,687 million in 2024, 2024 2023 2022
compared with $54,191 million in 2023. Cash flow from operating
activities in 2024 was primarily driven by Adjusted EBITDA, and Crude oil and natural gas liquids 1,452 1,454 1,460
working capital inflow of $2,062 million, partly offset by tax payments Synthetic crude oil 51 52 46
of $12,002 million. Natural gas [C] 1,333 1,285 1,357
Total 2,836 2,791 2,864
Cash capital expenditure
Cash capital expenditure* was $21,085 million in 2024, compared Of which:
with $24,392 million in 2023. Integrated Gas 954 939 921
Upstream 1,831 1,800 1,897
See "Our journey to net zero" on page 87. Oil sands (part of Chemicals and Products) 51 52 46
[A] See "Oil and gas information".
[B] Reflects 100% of production of subsidiaries except in respect of PSCs, where the figures
Operating expenses and Underlying operating expenses shown represent the entitlement of the subsidiaries concerned under those contracts.
Operating expenses* were $36,917 million in 2024, compared [C] Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf
with $39,960 million in 2023. Underlying operating expenses* per barrel.
were $35,707 million, compared with $39,201 million in 2023.
The decrease in both Operating expenses and Underlying operating Proved reserves
expenses was mainly driven by structural cost reductions delivered The proved oil and gas reserves of Shell subsidiaries and the
through operational efficiencies across our businesses, a leaner Shell share of the proved oil and gas reserves of joint ventures and
corporate centre, faster decision-making in project development, associates are summarised in "Oil and gas information" on pages
and portfolio changes. 47-54 and set out in more detail in "Supplementary information –
oil and gas (unaudited)" on pages 313-332.
Return on average capital employed on an Adjusted
Earnings plus Non-controlling interest (NCI) basis Before taking production into account, our proved reserves increased
Our ROACE on an Adjusted Earnings plus Non-controlling interest by 917 million boe in 2024. Total oil and gas production was
basis* decreased to 11.3%, compared with 12.8% in 2023, mainly 1,084 million boe. Accordingly, after taking production into account,
driven by lower earnings. our proved reserves decreased by 167 million boe in 2024, to
9,620 million boe at December 31, 2024.
Significant accounting estimates and judgements
See Note 2 to the "Consolidated Financial Statements"
on pages 245-255.

Legal proceedings
See Note 32 to the "Consolidated Financial Statements"
on pages 308-310.

* Non-GAAP measure (see page 445).

23 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value

Liquidity and capital resources Market risk, credit risk and pension commitments
Financial risks
We use various financial instruments for managing exposure to foreign
Liquidity and capital resources
exchange and interest rate movements. Our treasury operations are
Shell generated free cash flow*of $39.5 billion in 2024, aided
highly centralised and seek to manage credit exposures associated
by disciplined capital management, portfolio simplification and
with our substantial cash, foreign exchange and interest rate positions.
operational performance improvements. Net debt* decreased to
$38.8 billion at December 31, 2024 (December 31, 2023: $43.5
Our portfolio of cash investments is diversified to avoid
billion). Total debt decreased to $77.1 billion at December 31, 2024
concentrating risk in any one instrument, country or counterparty.
(December 31, 2023: $81.5 billion). Gearing* decreased to 17.7%
Other than in exceptional cases, the use of external derivative
at December 31, 2024, compared with 18.8% at December 31, 2023.
instruments is confined to specialist trading and central treasury
organisations that have the appropriate skills, experience,
See Note 21 to the "Consolidated Financial Statements" on pages 284-285. supervision, control and reporting systems.

We operate with procedures and policies designed to ensure that

Liquidity
trading risks are managed within a prescribed control framework. The
Shell satisfies its funding, liquidity and working capital requirements by
framework sets out authorised limits and requirements that trading
using cash generated from our operations, taking on debt and through
should only be performed by employees with the appropriate skills and
divestments. In 2024, access to the international debt capital markets
experience. Senior management regularly reviews these authorised
remained strong, with Shell's debt principally financed from
trading limits. In addition, a department that is independent from our
these markets through central debt programmes consisting of:
traders monitors our market risk exposures daily, using techniques such
￮ a $10 billion global commercial paper (CP) programme, with
as value-at-risk alongside other risk metrics.
maturities between 183 days and 364 days;
￮ a $10 billion US CP programme, with maturities not exceeding
We have counterparty credit risk policies in place which seek to
397 days;
ensure that products are sold to customers with appropriate
￮ an unlimited Euro medium-term note (EMTN) programme (also
creditworthiness. These policies include detailed credit analysis and
referred to as the Multi-Currency Debt Securities Programme).
monitoring of customers against counterparty credit limits. Where
This programme lapsed in November 2024, and will be renewed
appropriate, netting arrangements, credit insurance, prepayments
in the first half of 2025 or as required to issue debt; and
and collateral are used to manage credit risk.
￮ an unlimited US universal shelf (US shelf) registration.
Management believes it has access to sufficient debt funding sources
The debt issued under the CP, EMTN and US shelf has been issued by
(capital markets) and to undrawn committed borrowing facilities to
Shell International Finance B.V., the issuance company for Shell, with its
meet foreseeable requirements.
debt being guaranteed by Shell plc. In 2023, Shell incorporated a new
US subsidiary, Shell Finance US Inc., and in 2024 a portion of the debt
A pensions forum chaired by the CFO oversees Shell's input to pension
issued by Shell International Finance B.V. was moved into this entity
strategy, policy and operation. A risk committee supports the forum in
through an exchange offer. This debt remains guaranteed by Shell plc,
reviewing the results of assurance processes with respect to pension
as will any new debt issued by Shell Finance US Inc. under the US shelf.
risk. Local trustees manage the funded defined benefit pension plans
and set the strategic asset allocation for the plans, including the extent
We also maintain an $8 billion committed credit facility maturing in
to which currency, interest rate and inflation risks are hedged, and the
2026. This remained fully undrawn at December 31, 2024. This facility
contributions paid are based on independent actuarial valuations that
was reduced from $10 billion in the third quarter of 2024 due to the
align with applicable local regulations. Pension fund liquidity is
strong liquidity position of the Group. This reduced core facility and
managed by holding appropriate liquid assets and maintaining credit
cash on balance sheet provide back-up coverage for our CP
facilities. Where appropriate, transactions to transfer pension liabilities
programmes. Other than certain borrowings by subsidiaries in their
to third parties are also considered. Our total employer contributions
local jurisdictions, we do not have any other committed credit facilities.
were $0.4 billion in 2024 and are estimated to be $0.9 billion in 2025.
Our total debt decreased by $4.5 billion to $77.1 billion at December
31, 2024. The total debt excluding lease liabilities matures as follows: See "Risk factors" on page 139, Note 24 and Note 26 to the "Consolidated Financial
14% in 2025; 8% in 2026; 5% in 2027 and 73% in 2028 and beyond. Statements" on pages 290-296 and 298-304.

The portion of debt maturing in 2025 is expected to be repaid from

some combination of cash balances, cash generated from operations,
divestments and the issuance of new debt. In 2024, we did not issue
any debt under our US shelf registration, EMTN programme or CP
programmes. The Group had no CP outstanding at December 31, 2024.

While our subsidiaries are subject to restrictions, such as foreign

withholding taxes on the transfer of funds in the form of cash dividends,
loans or advances, such restrictions are not expected to have a
material impact on our ability to meet our cash obligations.

* Non-GAAP measure (see page 445).

24 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Liquidity and capital resources continued

Capitalisation table Prior year Consolidated Statement of Cash Flows

Our Consolidated Statement of Cash Flows for the financial year
$ million ended December 31, 2023, compared with the financial year ended
December December December 31, 2022, can be found in the Annual Report and Accounts
31, 2024 31, 2023 (page 35) and Form 20-F (page 33) for the year ended December 31,
Equity attributable to Shell plc shareholders 178,307 186,607 2023, as filed with the Registrar of Companies for England and Wales
and the US Securities and Exchange Commission, respectively.
Current debt 11,630 9,931
Non-current debt 65,448 71,610
See "Consolidated Statement of Cash Flows" on page 244.
Total debt [A] 77,078 81,541
Total capitalisation 255,385 268,148
Cash flow from operating activities
[A] Of total debt of $77.1 billion (2023: $81.5 billion), $48.1 billion (2023: $53.4 billion) The most significant factors affecting Shell's cash flow from operating
was unsecured and $29.0 billion (2023: $28.2 billion) was secured; $46.0 billion is fully
and unconditionally guaranteed by Shell plc (December 31, 2023: $51.3 billion), with the activities are earnings, which are mainly impacted by: realised prices
following amounts issued by Shell Group subsidiaries: $31.8 billion by Shell International for crude oil, natural gas and LNG; production levels of crude oil,
Finance B.V., a wholly owned finance subsidiary of Shell plc (December 31, 2023: $48.4 natural gas and LNG; chemicals, refining and marketing margins;
billion); $11.4 billion by Shell Finance US Inc., a wholly owned finance subsidiary of Shell
plc (December 31, 2023: $nil billion); and $2.8 billion by BG Energy Capital plc and movements in working capital and derivative financial instruments.
(December 31, 2023: $2.9 billion).
The impact on earnings from changes in market prices depends
See Note 21 to the "Consolidated Financial Statements" for further disclosure on total on: the extent to which contractual arrangements are tied to market
debt and net debt. prices; the dynamics of production-sharing contracts; the existence of
agreements with governments or state-owned oil and gas companies
that have limited sensitivity to crude oil and natural gas prices; tax
Guarantees and other off-balance sheet arrangements impacts; and the extent to which changes in commodity prices flow
There were no guarantees or other off-balance sheet arrangements through into operating expenses. Changes in benchmark prices of
at December 31, 2024, or December 31, 2023, that were reasonably crude oil and natural gas in any particular period provide only a broad
likely to have a material impact on Shell. indicator of changes in our Integrated Gas and Upstream earnings
in that period. Changes in any factors, from within the industry or the
See Note 32 to the "Consolidated Financial Statements" on page 308 for further details on broader economic environment, can influence refining and marketing
guarantees where the potential obligations related to issuance are assessed to be remote. margins. The precise impact of any changes depends on how the oil
markets respond to them. The market response is affected by factors
such as: whether the change affects all crude oil types or only a specific
Consolidated Statement of Cash Flows grade; regional and global crude oil and refined products inventories;
Cash flow from operating activities in 2024 was $54.7 billion, and the collective speed of response of refiners and product marketers
compared with $54.2 billion in 2023. The cash flow from operating in adjusting their operations. As a result, margins fluctuate from region
activities in 2024 was primarily driven by Adjusted EBITDA and to region and from period to period.
working capital inflow of $2.1 billion (compared with working
capital inflow of $7.1 billion in 2023), partly offset by tax payments Divestment and cash capital expenditure
of $12.0 billion (compared with tax payments of $13.7 billion in The levels of divestment proceeds and cash capital expenditure in
2023). The cash flow from operating activities in 2024 also included 2024 and 2023 reflect our discipline and focus as we implement our
favourable commodity-related derivative financial instrument strategy. Proceeds from sale of property, plant and equipment and
movement of $2.5 billion (compared with unfavourable businesses were $1.6 billion for 2024, compared with $2.6 billion
movement of $5.7 billion in 2023). in 2023. Divestment proceeds* for 2024 were $2.8 billion, compared
with $3.1 billion in 2023. Cash capital expenditure split
Cash flow from investing activities in 2024 was an outflow of by segment is presented in the table below:
$15.2 billion, compared with an outflow of $17.7 billion in 2023.
The cash flow from investing activities in 2024 included cash capital Cash capital expenditure* [A]
expenditure* of $21.1 billion (compared with cash capital expenditure
of $24.4 billion in 2023), partly offset by divestment proceeds* of $ million
$2.8 billion (compared with divestment proceeds* of $3.1 billion in
2024 2023 2022
2023) and interest received of $2.4 billion (compared with interest
received of $2.1 billion in 2023). Integrated Gas 4,767 4,196 4,265
Upstream 7,890 8,343 8,143
Cash flow from financing activities in 2024 was an outflow of Marketing [B] 2,445 5,790 4,978
$38.4 billion, compared with outflows of $38.2 billion in 2023, mainly
Chemicals and Products 3,290 3,014 3,691
due to lower repurchases of shares of $13.9 billion (2023: $14.6
billion) and unfavourable debt-related derivative financial instrument Renewables and Energy Solutions [C] 2,549 2,681 3,469
movements of $0.6 billion (2023: $0.7 billion favourable movement) Corporate 144 368 287
and lower net repayment of debt of $9.6 billion (2023: $9.8 billion Total cash capital expenditure 21,085 24,392 24,833
net repayment).
[A] See Note 7 to the "Consolidated Financial Statements" which includes an explanation of
the reporting segment changes applicable from 2024.
Cash and cash equivalents were $39.1 billion at December 31, [B] Includes acquisition of Nature Energy in 2023.
2024 (December 31, 2023: $38.8 billion). [C] Includes acquisition of Sprng in 2022.

* Non-GAAP measure (see page 445).

25 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Liquidity and capital resources continued

Contractual obligations
The table below summarises Shell's principal contractual obligations at December 31, 2024, by expected settlement period. The amounts
presented have not been offset by any committed third-party revenue in relation to these obligations.

Contractual obligations

$ billion
Less than 1 Between Between 5 years
year 1 and 3 years 3 and 5 years and later Total
Debt [A] 6.9 6.4 7.9 27.6 48.8
Leases 6.4 9.5 6.3 19.8 42.0
Purchase obligations [B] 28.8 22.1 13.5 55.2 119.6
Other long-term contractual liabilities [C] 0.1 1.0 0.2 0.7 2.1
Total 42.2 39.0 27.9 103.4 212.4

[A] See Note 21 to the "Consolidated Financial Statements". Debt contractual obligations exclude interest, which is estimated to be $1.4 billion payable in less than one year, $2.4 billion
between one and three years, $2.2 billion between three and five years, and $12.2 billion in five years and later. For this purpose, we assume that interest rates with respect to variable
interest rate debt remain constant at the rates in effect at December 31, 2024, and that there is no change in the aggregate principal amount of debt other than repayment at scheduled
maturity as reflected in the table. Lease contractual obligations include interest.
[B] Purchase obligations disclosed in the above table exclude commodity purchase obligations that are not fixed or determinable and are principally intended to be resold in a short period of
time through sale agreements with third parties. Examples include long-term non-cancellable LNG and natural gas purchase commitments and commitments to purchase refined products or
crude oil at market prices. Inclusion of such commitments would not be meaningful in measuring liquidity and cash flow, as the cash outflows generated by these purchases will generally be
offset in the same periods by cash received from the related sales transactions.
[C] Includes obligations included in "Trade and other payables" and provisions related to onerous contracts included in "Decommissioning and other provisions" in "Non-current liabilities" in the
"Consolidated Balance Sheet" that are contractually fixed as to timing and amount. In addition to these amounts, Shell has certain obligations that are not contractually fixed as to timing and
amount, including contributions to defined benefit pension plans (see Note 24 to the "Consolidated Financial Statements") and obligations associated with decommissioning and restoration
(see Note 25 to the "Consolidated Financial Statements").

Shareholder distributions The buybacks completed in the first half of 2024 were in accordance
We returned $8.7 billion to our shareholders through dividends with the authorities granted by shareholders at the 2023 Annual
and $13.9 billion through share buybacks in 2024. Total shareholder General Meeting (AGM). The buybacks completed in the second
distributions represented 41% of cash flow from operating activities*. half of 2024 were in accordance with the authorities granted by
shareholders at the 2024 AGM. At the 2024 AGM, authority was
The fourth quarter 2024 dividend of $0.358 per share was paid granted for the Company to repurchase up to a maximum of 10% of
on March 24, 2025, to shareholders on the register at February 14, its issued ordinary shares, excluding treasury shares, (644.2 million
2025, and represents an increase of 4% compared with the third ordinary shares), both on and off market, allowing purchases on the
quarter of 2024. Amsterdam as well as London exchanges. As at December 31, 2024,
468 million ordinary shares could still be repurchased under the current
See Note 30 to the "Consolidated Financial Statements" on page 308.
AGM authorities. The purpose of the share repurchases in 2024 was to
reduce the issued share capital of the Company.

Purchases of securities New resolutions will be proposed at the 2025 AGM to renew the
The intent to purchase shares was announced alongside the quarterly authority for the Company to purchase its own share capital, up to
results during 2024, and covered the period up until the next quarterly specified limits, for a further year. These proposals will be described
announcement. In 2024, share buybacks of $3.5 billion were in more detail in the 2025 Notice of Annual General Meeting.
announced on February 1, $3.5 billion on May 2, $3.5 billion on
August 1 and $3.5 billion on October 31 (finalised in the first quarter Shares are also purchased by the employee share ownership
of 2025). In addition, on January 30, 2025, a further buyback of trusts and trust-like entities (see Note 28 to the "Consolidated
$3.5 billion was announced along with the fourth quarter 2024 Financial Statements" on page 305) to meet delivery commitments
results; it is intended that this will be completed by the under employee share plans. All share purchases are made in open
announcement date of the first quarter 2025 results. market transactions.

During 2024, 409.1 million ordinary shares were purchased The table on the next page provides information on purchases of shares
and cancelled. Overall, a total nominal share value of €29 million in 2024 and January 2025 by the Company and affiliated purchasers.
($34 million), 6.3% of the Company's total issued share capital at Purchases in euros and sterling are converted into dollars using the
December 31, 2023, was purchased and cancelled during 2024 for exchange rate on each transaction date.
a total cost of $13.9 billion, including expenses, at an average price
of $34.36 per share.

* Non-GAAP measure (see page 445).

26 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Liquidity and capital resources continued

Purchases of equity securities by issuer and affiliated purchasers in 2024 [A]

Euro Shares GBP Shares ADSs [B]

Number Number Number Number Number
purchased purchased Weighted purchased purchased for Weighted purchased Weighted
for employee for cancellation average for employee cancellation average for employee average
Purchase period share plans [C] price ($)[D] share plans [C] price ($)[D] share plans price ($)[D]
January 3,187,890 2,992,417 32.32 1,189,886 20,282,994 31.54 650,966 66.03
February — 20,209,031 31.72 — 20,594,628 31.35 — —
March — 11,550,631 32.41 — 11,495,330 32.05 67,764 67.37
April — 13,500,349 35.93 — 27,822,393 35.43 — —
May — 18,389,736 36.02 — 17,661,025 35.86 — —
June — 14,235,749 35.05 — 16,234,749 34.93 34,819 71.43
July — 9,320,167 36.30 — 22,056,649 36.27 — —
August — 17,386,007 35.89 — 16,989,085 35.59 — —
September — 18,341,974 33.96 — 19,439,076 25.70 36,136 69.48
October — 15,538,143 33.74 — 15,598,083 33.40 — —
November 3,161,027 15,370,794 33.00 773,600 23,427,791 32.71 — —
December 5,290,944 15,272,833 31.53 1,261,616 23,175,726 31.28 514,913 61.24
Total 2024 11,639,861 172,107,831 33.91 3,225,102 234,777,529 33.66 1,304,597 64.45
January 5,446,429 13,269,767 32.91 1,271,425 19,923,745 32.68 2,047,363 64.83
Total 2025 5,446,429 13,269,767 32.91 1,271,425 19,923,745 32.68 2,047,363 64.83

[A] Reported as at transaction date.

[B] American Depositary Shares.
[C] Under the share buyback programme.
[D] Includes stamp duty and brokers' commission.

Financial information relating to the Royal Dutch Shell On January 29, 2022, one line of shares was established through
Dividend Access Trust assimilation of each A share and each B share into one ordinary share
The results of the Royal Dutch Shell Dividend Access Trust (the Trust) of the Company. This assimilation had no impact on voting rights or
are included in the consolidated results of operations and financial dividend entitlements. Dutch withholding tax, applied previously on
position of Shell. Certain condensed financial information in respect dividends on A shares, no longer applies on dividends paid on the
of the Trust is given below. ordinary shares following the assimilation.

The Shell Transport and Trading Company Limited and BG Group In relation to the assimilation of the Company's A and B shares, the
Limited have each issued a dividend access share to Computershare Trust will continue in existence for the foreseeable future to facilitate
Trustees (Jersey) Limited (the Trustee). For the years 2024, 2023 the payment of unclaimed dividend liabilities for shareholders of the
and 2022, the Trust recorded income before tax of £nil, £nil and £nil former B shares until these are either claimed or forfeited in line with
respectively. In each period, this reflected the amount of dividends the terms outlined. Dividends which are unclaimed after six years are
payable on the dividend access shares. Dividends are also classified forfeited and unconditionally revert to The Shell Transport and Trading
as unclaimed where amounts have not cleared recipient bank accounts. Company Limited and BG Group Limited, as appropriate.

At December 31, 2024, the Trust had total equity of £nil (December 31,
2023: £nil; December 31, 2022: £nil), reflecting assets of £3 million
(December 31, 2023: £4 million; December 31, 2022: £6 million) and
unclaimed dividends of £3 million (December 31, 2023: £4 million;
December 31, 2022: £6 million). The Trust only records a liability for
an unclaimed dividend to the extent that dividend cheque payments
have not been presented within 12 months, have expired or have
been returned unpresented. As these unclaimed dividends relate to
dividends that were announced by the Company during the period the
Company was still named Royal Dutch Shell plc, and it is expected that
the Company will not announce any further dividends on the dividend
access shares, the Trust continues to be named the Royal Dutch Shell
Dividend Access Trust.

27 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value

Market overview Global prices, demand and supply

The following table provides an overview of the main crude oil
and natural gas price markers to which Shell is exposed:
Shell maintains a large and diversified business portfolio across
an integrated value chain. We are exposed to fluctuating prices of
crude oil, natural gas, oil products, chemicals and power. However, Oil and gas average industry prices [A]
our diversified portfolio provides resilience when prices are volatile.
2024 2023 2022
Our annual planning cycle and periodic portfolio reviews aim to
ensure that our levels of capital investment and operating expenses Brent ($/b) 81 83 101
are appropriate in the context of a volatile price environment. West Texas Intermediate ($/b) 76 78 95
Henry Hub ($/MMBtu) 2.2 2.5 6.4
See "Risk factors" on page 135. EU TTF ($/MMBtu) 11 13 40
Japan Customs-cleared Crude ($/b) - 3 months 88 89 98
We prepare an annual financial plan that tests different scenarios, and [A] The 2024 average price for Japan Customs-cleared Crude is based on available market
their impact on prices, on our businesses and organisation as a whole. information up to the end of the period. Brent, West Texas Intermediate and EU TTF yearly
These scenarios help us determine which issues could affect our average prices are based on daily spot prices. Henry Hub and Japan Customs-cleared
Crude yearly average prices are based on monthly average prices.
operating environment and have implications for our strategy. They also
help us to identify potential interventions to preserve our cash levels.
Crude oil and oil products
The global benchmark oil price Brent averaged $81 per barrel (bbl)
We continually assess the external environment -- the markets and the
in 2024, slightly lower than the average of $83/bbl in 2023. Prices
underlying economic, political, social and environmental drivers that
continued to be volatile, with Brent daily spot ranging between $70/
shape them -- to evaluate changes in competitive forces. We define
bbl and $93/bbl. This reflected a well-supplied market due to slower
multiple potential future scenarios and business environments by
economic growth and fuel substitution, as well as continued conflict
identifying drivers, uncertainties, enablers and constraints to our
in the Middle East and Europe.
competitiveness.
Global liquids demand growth was weaker in 2024, mainly due to
We also continually screen for new opportunities globally through
significantly less demand growth from China. In 2023, demand from
our opportunity identification process. We test the resilience of our
China increased by around 1.3 million barrels per day (mb/d) year-on-
opportunities against a range of prices and costs for crude oil,
year because of growth after COVID-19 but in 2024 this slowed to
natural gas, oil products and chemicals. These tests are based on
around 0.2 mb/d, mainly due to the country's economic slowdown and
short-, medium- and long-term market drivers, such as the extent and
partly due to the rapid uptake of electric vehicles. This has driven the
pace of the energy transition. Our opportunities are then ranked,
slowdown of overall global demand growth, from more than 2 mb/d
prioritised and tested for strategic fit and value return expectations
in 2023 to just 0.9 mb/d in 2024.
before being included in our growth funnel.
Global liquids supply growth came in slightly lower than demand
Global economic growth
growth at around 0.6 mb/d, which includes 0.2 mb/d of growth from
In 2024, the global economy has demonstrated resilience at a time
global biofuel supplies and the rest from non-OPEC crude supplies.
of geopolitical tensions, inflation and rising interest rates. The World
OPEC supply declined further, by around 0.2 mb/d year-on-year,
Economic Outlook, published by the International Monetary Fund
as OPEC maintained a production cut to keep the market balanced.
in January 2025, estimated global economic growth in 2024 to
The timing for the unwinding of curtailed production of OPEC and its
be 3.2% compared with 3.3% in 2023.
alliances has been a key factor for supply. The return of the voluntary
cut, put in place in 2023, has been repeatedly delayed due to weak
Macroeconomic performance was unevenly distributed. For example,
market conditions, and is now expected to happen in the second
growth in China disappointed, as stronger exports only partly offset
quarter of 2025 at the earliest.
a slowdown in consumption amid delayed stabilisation in the property
market. India and Indonesia saw relatively brisk growth, while growth
Conflicts in the Middle East and Europe caused some spikes in oil
in Europe was strained, largely reflecting weakness in manufacturing
prices throughout the year as the market perceived increased risks to
and goods exports. By contrast, momentum in the USA remained
oil infrastructure and key shipping routes, such as the Red Sea. But the
robust with the economy powered by strong consumption.
spikes were short-lived as the market continued to focus on demand
and supply fundamentals.
Inflation receded further toward target levels in most countries,
bolstering real incomes. From June 2024, many major central banks
In 2025, the slowdown in China is expected to continue to influence
began cutting interest rates. This has supported deal-making and
demand. The International Energy Agency (IEA) expects continued
economic activity. However, growth is likely to be limited because
below-trend growth from China and this could result in a similar rate
of protectionist trade policies and economic challenges, such as high
of growth for global oil demand as in 2024. On the supply side,
energy prices in Europe and the property market slowdown in China.
non-OPEC supply — excluding US Light Tight Oil — is expected to rise,
strongly bolstered by conventional offshore projects. Meanwhile, the
market will continue to watch the pace at which OPEC unwinds its
curtailed production.

28 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Market overview continued

Natural gas power prices remained stable relative to 2023. Solar and wind
Gas market generation continued to grow and, depending on their market
Global gas prices weakened in 2024, leading to higher demand and penetration levels, impacted the hourly price profiles. Continued
hence a modest return to growth in global gas markets in 2024. But growth in renewable energy demand is expected in 2025, driven
prices remained higher than the historical levels seen prior to the by the expansion of data centres.
Russian invasion of Ukraine. The market remained volatile because of
concerns about security of supply in Europe and limited new LNG Europe: Across Europe, power prices continued to fall for the second
supply. LNG supply increased by less than 3% in 2024, supporting year in a row from the height of the energy crisis in 2022. Germany,
relatively elevated pricing levels. The early part of 2024 saw spot LNG France, the United Kingdom and Spain saw a reduction of between
prices fall to their lowest level since early 2022, but prices recovered EUR 20/MWh and 30/MWh in their annual average wholesale power
by mid-year due to delays in the development of new supply capacity. prices in 2024, compared with 2023. This was partly due to depressed
demand, more output from wind power generation in the winter months
Title Transfer Facility (TTF): In Europe, TTF spot prices averaged and record-setting solar power output in the summer. German power
$10.95/MMBtu (17% lower year-on-year). Demand remained weak prices are still among the highest on the continent with an annual
due to warmer than normal winter weather early in the year, continued average of EUR 79/MWh. Germany is testing a new auction
lower demand from the industrial sector, and high levels of renewable mechanism for excess power to be used by flexible loads as a means
power generation. As a result, European storage levels reached of managing the increasing number of negative price hours. More than
maximum fill levels by the end of October 2024 and entered the winter 32 GW of wind capacity was awarded by European governments in
in a strong position. However, continued concerns over gas supply auctions this year. Nearly 10 GW of Europe's oldest remaining coal-
security because of geopolitical tensions resulted in a more volatile fired power stations were retired this year; the majority were retired in
price environment in the fourth quarter of the year. Europe is expected Germany, while the UK and Denmark closed their last coal plants.
to increase imports of LNG in 2025 to refill its gas storage. Power prices show an increasing dependence on solar and wind
generation, reaching more than EUR 800/MWh during a period
Japan Korea Marker (JKM): Spot LNG prices in Asia closely tracked of very low solar and wind power generation in Germany in early
the market dynamics impacting the European market. JKM prices November. In 2025, a policy shift towards economic competitiveness
averaged $11.89 (14% lower year-on-year). Through the first three is likely, potentially paired with protectionist interventions in Europe.
quarters of 2024, JKM prices traded at a premium to TTF as modest Issues such as operational flexibility and grid infrastructure are being
growth in Chinese and Indian demand drew cargoes east because of addressed by, for example, increased battery investments and market
constrained LNG supply. With storage levels high in the fourth quarter, changes, such as the transition to 15-minute trading intervals in all
JKM prices fell below TTF as cargoes were pulled to Europe. bidding zones of the European Single Day-Ahead Coupling market.

Henry Hub: The North American gas market was well supplied in Australia: The volume-weighted average prices (VWAP) in the east
2024. Higher-than-expected power generation from wind and solar coast National Electricity Market (NEM) averaged about A$130/
reduced the need for gas-fired power. Lower gas demand put MWh in 2024, increasing from around A$90/MWh in 2023. The west
downward pressure on Henry Hub spot prices to the extent that natural coast Wholesale Electricity Market (WEM) saw a more modest year-
gas producers responded by curtailing production. Henry Hub spot hit on-year VWAP increase from roughly A$90/MWh to around A$95/
a new all-time low of $1.24/MMBtu in March 2024 and then again in MWh. The VWAP of the east coast domestic gas markets (Brisbane,
November at $1.22/MMBtu. Henry Hub spot averaged $2.2/MMBtu Sydney, Adelaide and the Declared Wholesale Gas Market (DWGM))
over 2024, with a wide range of $1.22/MMBtu to $13.20/MMBtu, rose to around A$12.75/GJ in 2024 from around A$11.70/GJ
with the high mark due to a short-lived January winter storm. In the in 2023. Meanwhile, in Western Australia the average gas price
summer, temperatures averaged 1.4°C higher than the 10-year norm. rose to around A$7.10/GJ in 2024 from about A$6.15/GJ in 2023.
While this was bullish for gas power generation, it was offset by the In addition to higher power prices, price volatility also increased
impact of strong renewable generation. As such, natural gas storage compared with the previous year in both the NEM and WEM, largely
ended the summer at a five-year high. For 2025, continued growth due to increasing levels of rooftop solar generation which pushed
in renewable capacity coupled with higher dry gas production is network demand to record lows and led to prolonged periods
expected to put downward pressure on natural gas prices. of negative prices. In the NEM, cold weather, low wind and low
hydroelectric generation in the second quarter and early third
Global gas prices are expected to remain volatile in 2025. Project quarter put upward pressure on prices and led to greater reliance
delays and legacy production declines are likely to constrain supply on gas-powered generation, increasing domestic gas demand. A key
growth. However, demand has also been bolstered by economic development to watch in 2025 is the outcome of the federal election,
growth in Asia, the end of Russian gas flowing to Europe via Ukraine, given the differing policies of the incumbent and opposition parties on
and Europe's need to replenish inventories. Increased government the role of gas and power generation technologies.
intervention as well as geopolitical unrest continue to affect global
LNG trade flows and price variance. Crude oil and natural gas price assumptions
Our ability to deliver competitive returns and pursue commercial
Power opportunities depends on the accuracy of our price assumptions.
USA: In 2024, US power prices remained stable across most eastern We use a rigorous assessment of short-, medium- and long-term
markets compared with 2023. Henry Hub gas benchmark prices in market uncertainties to determine which ranges of future crude oil
North America were largely steady, staying below $3/MMBtu after and natural gas prices to use in project and portfolio evaluations.
a short-lived spike in January 2024. In the western USA, a cold start Market uncertainties include, for example, future economic conditions,
to the year drove Mid-Columbia prices to reach the $1,000/MWh geopolitics, actions by major resource holders, production costs,
soft cap multiple times in January, although the California Independent technological progress and the balance of supply and demand.
System Operator (CAISO) market was largely insulated from these
fluctuations. The ERCOT (Texas) market set a new peak of 85.5 GW on See "Risk factors" on page 135 and Note 12 to the "Consolidated Financial Statements"
August 20, 2024, but ERCOT successfully managed the high load with on pages 275-276.
much lower prices compared with 2023. In the eastern USA, including
PJM, MISO (Midcontinent), ISO-NE (New England) and NYISO,

29 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Market overview continued

Refining and chemical margins Refining margins

Refining margins declined in 2024 from the high levels seen in 2022
and 2023. Despite conflicts in the Middle East and a continuing war Global indicative refining margin [A]
in Ukraine, supply chains have adjusted to keep the Atlantic Basin well
supplied, particularly with middle distillate to Europe. There were some $/bbl
shipping disruptions in the Red Sea at the start of 2024 which reduced 2024 2023 2022
the amount of oil products coming into Europe from East of Suez. This
Indicative refining margin 7.74 12.45 18.03
led to a spike in margins when combined with a heavy first-quarter
refinery maintenance season in the Atlantic Basin. However, once the [A] The indicative refining margin (IRM) is an approximation of Shell's global gross refining
refineries came back online and supplies to Europe came in via the unit margin, calculated using price markers from third-party databases. It is based on a
simplified crude and product yield profile at a nominal level of refining performance. The
Cape of Good Hope, margins dropped to more normal levels. actual margins realised by Shell may vary due to factors including specific local market
Moreover, demand growth has been limited with the Eurozone effects, refinery maintenance, crude diet optimisation as the crudes in the IRM are
indicative benchmark crudes, operating decisions and product demand. Gross refining
economy struggling, China's lower economic growth and muted unit margin is defined as the hydrocarbon margin net of purchased/sold utilities, additives
growth in US gasoline demand. and relevant freight costs, divided by crude and feedstock intake in barrels. It is only
applicable to the impact of market pricing on refining business performance, excluding
trading margin.
The margin for 2025 is expected to be in line with 2024 levels. Oil
product demand growth is likely to be weak and concentrated in Latin
Petrochemical margins
America, South-east Asia and India as economic growth is likely to
remain sluggish in China and weak in Europe, and as electric vehicle
penetration ramps up. New refinery capacity in India and China is still Global indicative chemical margin [A]
coming online and the major Atlantic Basin projects, Olemca (Mexico)
$/tonne
and Dangote (Nigeria), will ramp up production in 2025 although
neither site is expected to reach full capacity in 2025. Some support 2024 2023 2022
for refining margins will come from announced site closures in Indicative chemical margin 151.72 132.63 48.04
California, the US Gulf Coast and Europe. In addition, US gasoline
[A] The indicative chemical margin (ICM) is an approximation of Shell's global chemical
stocks remain low and this could lead to a spike in margins if there margin performance trend (including equity-accounted associates), calculated using price
is a supply disruption. Lower crude oil prices could also support markers from third-party databases. It is based on a simplified feedstock and product yield
profile at a nominal level of plant performance. The actual margins realised by Shell may
more demand growth. vary due to factors including specific local market effects, chemical plants maintenance,
optimisation, operating decisions and product demand. Chemical unit margin is defined
Chemical cracker margins remained pressured in 2024 because of as the hydrocarbon margin net of purchased/sold utilities, additives and relevant freight
costs, divided by a nominal denominator expressed in metric tonnes. It is only applicable
global oversupply and weak demand. Asia and Europe saw slight relief to the impact of market pricing on Chemicals business performance.
with lower crude prices, but both regions remained under significant
pressure. Cracker utilisation continued to drift lower with the start-up The statements in this "Market overview" section are forward-looking
of new Asian capacity. Europe remained under strain with high energy statements based on management's current expectations and certain
costs as various producers, including LyondellBasell Industries (LB)I material assumptions and, accordingly, involve risks and uncertainties
and Dow Inc., announced closures and portfolio reviews. that could cause actual results, performance or events to differ
materially from those expressed or implied herein.
The outlook for petrochemical margins in 2025 and beyond depends
on feedstock costs and the balance of supply and demand. Global
See "About this Report" on pages v-vi and "Risk factors" on page 135.
oversupply is expected to persist through the year with a slow demand
recovery. A recovery in demand is needed to absorb excess capacity.
The supply of petrochemicals will depend on how new facilities come
online and how plant closures will impact net capacity, with utilisation
balancing the system. Product prices will reflect the cost of raw
materials, which is closely linked to crude oil and natural gas prices.
Increasing volatility driven by political and upstream price uncertainty
will present short-term localised opportunities to bolster returns.

30 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value

Integrated
Gas
Integrated Gas includes liquefied natural gas
(LNG) and the conversion of natural gas into
gas-to-liquids (GTL) fuels and other products.
It includes natural gas and liquids exploration
and extraction, and the operation of the
upstream and midstream infrastructure
necessary to deliver these to market.
Integrated Gas also includes the marketing,
trading and optimisation of LNG.

9.6 11.4
Segment earnings ($ billion) Adjusted Earnings ($ billion)
(2023: 7.1) (2023: 13.9)

16.9 954
Cash flow from operating Production (thousand boe/d)
activities ($ billion) (2023: 939)
(2023: 17.5)

29 66
LNG liquefaction volumes LNG sales volumes
(million tonnes) (million tonnes)
(2023: 28) (2023: 67)

31 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Integrated Gas continued

Integrated Gas performed well as we increased LNG liquefaction Key metrics [B]
volumes and our access to third-party volumes. We boosted our
operational performance. In Australia, Prelude and QGC achieved $ million, except where indicated
record availability, resulting in their highest ever production. During 2024 2023 2022
the year, we extended partnerships in Oman and decided to invest
Segment earnings*[C] 9,590 7,057 22,221
in the ADNOC Ruwais LNG project in Abu Dhabi [A]. We also took
final investment decisions on a number of key projects, including Identified items (1,800) (6,861) 6,075
Manatee in Trinidad and Tobago, and agreed to acquire Pavilion Adjusted Earnings* [C] 11,390 13,919 16,146
Energy in Singapore [A]. See "Outlook" on pages 16-17 for our Adjusted EBITDA* [C] 20,978 23,773 26,581
Capital Markets 2025 investor update.
Cash flow from operating activities 16,909 17,520 27,692
Business conditions Cash capital expenditure* 4,767 4,196 4,265
For the business conditions relevant to Integrated Gas, see "Market Liquids production available for sale
overview" on pages 28-30. (thousand b/d) 132 128 128
Natural gas production available for sale
(million scf/d) 4,769 4,700 4,600
Financial delivery Total production available for sale
(thousand boe/d) 954 939 921
Earnings 2024-2023
LNG liquefaction volumes (million tonnes) 29.1 28.3 29.7
Segment earnings increased by $2,533 million compared with
2023. This was a result of higher volumes (increase of $514 million), LNG sales volumes (million tonnes) 65.8 67.1 66.0
lower operating expenses (decrease of $478 million), and favourable [B] See Note 7 to the "Consolidated Financial Statements" which includes an explanation of
deferred tax movements ($399 million) compared with 2023. the reporting segment changes applicable from 2024.
Furthermore, this included the combined effect of lower contributions [C] Segment earnings, Adjusted Earnings, and Adjusted EBITDA are presented on a current
cost of supplies basis.
from trading and optimisation and lower realised prices (decrease of
$3,819 million compared with 2023), partly offset by a comparative Cash flow from operating activities
help relating to fair value accounting of commodity derivatives Cash flow from operating activities for 2024 was primarily driven by
(unfavourable movement of $1,088 million in 2024 compared with Adjusted EBITDA and working capital inflows of $467 million, partly
an unfavourable movement of $4,407 million in 2023 which are offset by tax payments of $2,955 million and net cash outflows related
part of identified items). Segment earnings in 2024 also included to derivatives of $1,466 million.
net impairment charges and reversals of $363 million
(2023: $2,247 million), which are part of identified items. Shell's policy is to settle the inter-segment use of tax attributes between
business segments. This settlement is usually made in cash but in certain
As part of Shell's normal business, commodity derivative hedge instances there is no cash settlement. In 2024, the Integrated Gas
contracts are entered into for mitigation of economic exposures segment's deferred tax assets ($974 million) were mainly used by the
on future purchases, sales and inventory. Upstream ($759 million) and Chemicals and Products ($183 million)
segments, for which no cash settlement was made.
Adjusted Earnings and Adjusted EBITDA were driven by the same
factors as the segment earnings, and adjusted for identified items. Cash capital expenditure
Our cash capital expenditure in 2024 was higher than in 2023. The
Prior year earnings summary increase was mainly a result of maturation of projects in Trinidad and
Segment earnings in 2023 were lower in comparison to 2022 and Tobago and Australia, as well as higher maintenance in Pearl GTL. Our
reflected the net effect of lower realised prices and higher contributions cash capital expenditure* is expected to be around $6 billion in 2025
from trading and optimisation (a decrease of $1,143 million), lower in Integrated Gas.
volumes (a decrease of $466 million), and unfavourable deferred tax
movements (a decrease of $728 million).

Segment earnings included identified items: mainly unfavourable

Operational performance
movements of $4,407 million due to the fair value accounting of Production available for sale
commodity derivatives and net impairment charges and reversals of Our natural gas production increased by 2% in 2024 compared
$2,247 million. In 2022, identified items included favourable with 2023, mainly due to the ramp-up of fields in Oman and Australia.
movements of $6,273 million due to the fair value accounting of In this period, natural gas and liquids made up 86% and 14% of total
commodity derivatives and net impairment reversals of $779 million. In production, respectively.
2022, these were partly offset by other impacts of $608 million, mainly
loan write-downs, as well as charges of $387 million as provisions for LNG liquefaction and sales volumes
onerous contracts. Our LNG liquefaction volumes increased by 3% compared with the
previous year, mainly due to lower maintenance in Australia.
Adjusted Earnings and Adjusted EBITDA were driven by the same
factors as the segment earnings, and adjusted for identified items. LNG sales volumes decreased primarily because of lower purchases
from third parties, coupled with higher inventory at the end of the year.
[A] Transaction subject to completion.
* Non-GAAP measure (see page 445).

32 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Integrated Gas continued

Integrated Gas data table

LNG liquefaction volumes

Million tonnes
2024 2023 2022
Australia 14.4 13.3 13.2
Brunei 1.2 1.1 1.2
Egypt — 0.3 0.5
Nigeria 3.5 3.3 3.6
Oman 2.8 2.7 2.8
Peru 0.9 0.8 0.8 Shell completes its largest ever turnaround at Pearl GTL
In 2024, more than 16,000 workers converged on the Pearl GTL
Qatar 2.3 2.4 2.4
gas-to-liquids facility in Qatar to carry out maintenance and
Russia — — 0.9 repair work over 56 days on Pearl GTL's Train 2 production line.
Trinidad and Tobago 4.0 4.3 4.3 The turnaround was completed on schedule and at a
Total 29.1 28.3 29.7
competitive cost – a clear example of how Shell, the operator,
is focusing on performance and discipline as we implement
our strategy.

Strategic progress Turnaround events, like this one, are planned, periodic
shutdowns of a manufacturing facility for maintenance and
Portfolio and business developments repair work that cannot be conducted while the facility is fully
Significant portfolio and business developments: operational. These events are crucial for maintaining the integrity
￮ In June 2024, we agreed to acquire 100% of the shares in and reliability of the facility. Throughout the turnaround, Pearl
Singapore-based Pavilion Energy Pte. Ltd. from Carne Investments GTL's Train 1 remained operational, ensuring continuous supply
Pte. Ltd., a wholly owned subsidiary of Temasek. Pavilion Energy of GTL products used by global customers in sectors from
includes a global LNG trading business with about 6.5 mtpa of industry to transport.
contracted supply volume [A].
￮ In July 2024, we took the final investment decision (FID) on the Planning for the event started more than three years prior, and
Manatee project, a gas field in the East Coast Marine Area (ECMA) during the execution phase teams worked around the clock,
in Trinidad and Tobago. making it a 24/7 event. The effective execution included nearly
￮ In July 2024, we signed an agreement to invest in the Abu Dhabi 10,000 heavy lifts, more than 14,000 flanges opened, and
National Oil Company's (ADNOC) Ruwais LNG project through a 2,700 field welds completed, resulting in over 9 million exposure
10% participating interest [A]. The project will consist of two 4.8 hours with no significant incidents.
mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa. LNG
deliveries are expected to start in 2028. In recent years, Pearl GTL has been operating with high safety,
￮ In August 2024, Arrow Energy, an incorporated joint venture reliability and availability performance. In 2024, Pearl achieved
between Shell (50%) and PetroChina (50%), announced the its second-best year for reliability with unplanned downtime at
sanction of Phase 2 of Arrow Energy's Surat Gas Project in 1.4%. In the same year, Pearl also achieved its lowest
Queensland, Australia. greenhouse gas (GHG) intensity since start-up and was the
largest GHG abatement contributor to the Shell scorecard.
During 2024, we continued to grow our world-leading LNG business.
We invested in our existing assets, for example taking a final Learning from the previous turnaround in 2022, Pearl GTL
investment decision on the Manatee gas project in Trinidad and reduced flaring by approximately 19% during this event.
Tobago and by going ahead with projects to supply gas at our LNG Overall, Pearl GTL has reduced total flaring by 75% since 2016.
facilities in Australia, such as Surat Gas Project North.
Despite the challenge of a turnaround this size, we continued to
Manatee is expected to start production in 2027 and, once online, is place a strong emphasis on worker welfare. This was a critical
expected to reach peak production of about 104,000 barrels of oil success factor in ensuring we had a healthy and focused team
equivalent per day (boe/d) (604 MMscf/d). It will provide backfill for when it mattered most – on the job, at the point of risk.
the country's Atlantic LNG facility and to the petrochemical sector.
Increasing utilisation at existing LNG plants is an important lever to This turnaround was conducted in close partnership with Qatar's
maximise potential from Shell's existing assets. We also undertook the state energy company – QatarEnergy. Collaborating and
Phase 1 of the commercial restructuring of Atlantic LNG in Trinidad and consulting during every phase of the project ensured successful
Tobago in 2024 in an effort to simplify the structure of the project. The completion, supporting reliable and safe future operations.
remaining phases are expected to be completed by 2027.
Photo: Pearl GTL Plant, Qatar.

[A] Transaction subject to completion.

33 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Integrated Gas continued

The Surat Gas Project Phase 2 is expected to contribute around agreement to invest in the Ruwais LNG project that will use an
22,400 barrels of oil equivalent per day (or 130 million standard cubic electric-powered liquefaction system and has access to nuclear and
feet per day) at peak production and first gas is expected in 2026. The solar power. The transaction is still subject to completion.
gas from the project will flow to the Shell-operated Queensland Curtis
LNG (QCLNG) facility on Curtis Island, near Gladstone, to meet long- Finally, in 2024, we made good progress at LNG Canada, the single
term contracts and supply domestic customers. largest private-sector energy investment in Canada's history. The facility
is expected to initially export up to 14 million tonnes of LNG per
We announced the investment in new projects such as Pavilion Energy annum, contributing up to 5.6 mtpa to Shell's global LNG supply
in Singapore, which will add to our current sales and bring flexibility to portfolio. The project is on track to ship its first cargoes to global
our portfolio, as well as additional access to strategic gas markets in markets by the middle of 2025. LNG Canada has also been designed
Asia and Europe. The 10-year LNG supply agreement that we signed with energy-efficient natural gas turbines and is expected to use
with Boru Hatları ile Petrol Taşıma AŞ (BOTAS) of Turkey in 2024, will renewable power from an electric utility in the province of British
also increase the diversity and flexibility of our portfolio. Columbia.

We also continued growing our portfolio through the construction of

new lower-carbon intensity LNG plants, for example with the
Business and property
Integrated Gas
A complete list of LNG and GTL plants in operation and under construction in which we have an interest is provided below.

LNG liquefaction plants in operation at December 31, 2024 [A]

100% capacity
Asset Location Shell interest (%) (mtpa) [B] Shell-operated
Asia
Brunei Brunei LNG Lumut 25 7.6 No
Oman Oman LNG Sur 30 7.1 No
Qalhat LNG [C] Sur 11 3.7 No
Qatar QatarEnergy LNG N(4) [D] Ras Laffan 30 7.8 No
Oceania
Australia Australia North West Shelf [D] Karratha 16.7 16.9 No
Gorgon LNG [D] Barrow Island 25 15.6 No
Prelude [D] Browse Basin 67.5 3.6 Yes
Queensland Curtis LNG T1 [D] Curtis Island 50 4.3 Yes
Queensland Curtis LNG T2 [D] Curtis Island 97.5 4.3 Yes
Africa
Egypt Egyptian LNG T1 Idku 35.5 3.6 No
Egyptian LNG T2 Idku 38 3.6 No
Nigeria Nigeria LNG T1-T6 Bonny 25.6 24.1 No
South America
Peru Peru LNG Pampa Melchorita 20 4.5 No
Trinidad and Tobago Atlantic LNG T1/T2/T3 [E] Point Fortin 47.15 9.3 No
Atlantic LNG T4 Point Fortin 51.1 5.2 No

[A] We have offtake rights via a lease to 100% of the capacity (2.5 mtpa) of the Kinder Morgan-operated Elba Island liquefaction plant in Georgia, USA.
[B] 100% capacity represents the total capacity that all trains can process as reported by the operator.
[C] The interest is held via an indirect shareholding through Oman LNG.
[D] These assets are clustered as integrated assets and have onshore or offshore upstream production.
[E] Shell % applies from October 1, 2024, as result of the agreement between Shell, the government of Trinidad and Tobago, and Atlantic LNG and its shareholders to restructure the Atlantic
LNG facility. Prior to the restructuring, Shell's equity was 46% in T1 and 57.5% in T2/T3.

34 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Integrated Gas continued

LNG liquefaction plants under construction at December 31, 2024 [A]

100% capacity
Asset Location Shell interest (%) (mtpa) [B] Shell-operated
Africa
Nigeria Train 7 [C] Bonny 25.6 7.6 No
North America
Canada LNG Canada T1-2 [D] Kitimat 40.0 14.0 No
Asia
Qatar QatarEnergy LNG NFE(2) [E] Ras Laffan 25.0 8.0 No
QatarEnergy LNG NFS(2) [F] Ras Laffan 25.0 6.0 No

[A] In July 2024, we agreed to invest in the Ruwais LNG project in Abu Dhabi through a 10% participating interest. The Ruwais LNG project, which is already under construction, will consist of
two 4.8 mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa. LNG deliveries are expected to start in 2028. The deal is subject to completion.
[B] 100% capacity represents the total capacity that all trains are expected to process as reported by the operator.
[C] First LNG is expected in the second half of the 2020s.
[D] Construction started in October 2018 and first LNG is expected by mid-2025.
[E] Shell holds 25% in the joint venture, which owns 25% of the North Field East expansion project, which has a nameplate capacity of 32 mtpa. First LNG is expected in the second half of the 2020s.
[F] Shell holds 25% in the joint venture, which owns 37.5% of the North Field South expansion project, which has a nameplate capacity of 16 mtpa. First LNG is expected in the second half of the 2020s.

GTL plants in operation at December 31, 2024

100% capacity
Asset Location Shell interest (%) (b/d) [A] Shell-operated
Asia
Malaysia Shell MDS Bintulu 72.0 14,700 Yes
Qatar Pearl Ras Laffan 100.0 140,000 Yes

[A] 100% capacity represents the total capacity of the plant.

LNG regasification terminals Bolivia

In 2024, we held interests in regasification terminals: Dragon LNG in We have a 37.5% interest in the Repsol-operated Caipipendi block
the UK (Shell interest 50%), Shell Energy India Pvt Ltd (Shell interest where natural gas is produced and delivered to domestic and export
100%) and Shell LNG Gibraltar (Shell interest 51%). We had rights in markets. We also have a 25% interest in the Tarija XX West block
other regasification terminals in Mexico (Shell capacity rights 2.7 which produces from the Itaú field.
mtpa), the Netherlands (Shell capacity rights 4.6 mtpa), Singapore
(mainly licences to import LNG and sell regasified LNG in Singapore Canada
with no volume cap) and the USA (total Shell capacity rights 24.7 We produce and market natural gas, natural gas liquids and
mtpa). Total Shell regasification capacity rights were 7.7 mtpa in condensate. We hold mineral acres, primarily in the Montney play in
Europe, 27.4 mtpa in North America and 6 mtpa in Asia. British Columbia and Alberta. We operate four natural gas processing
facilities at our Groundbirch asset in British Columbia with another
Oil and natural gas production, exploration and development natural gas processing facility that will be commissioned and
Australia operational in early 2025. Shell's working interest across the
We operate the Queensland Curtis LNG (QCLNG) venture's natural Groundbirch acreage ranges from 88% to 92%.
gas operations in the onshore Surat Basin. Our interests range from
44% to 74% in 25 field compression stations and six central processing
plants. Gas from the Surat Basin is supplied to the QCLNG liquefaction
plant and the domestic gas market. Also in Queensland, we have a
50% interest in the Arrow joint venture with China National Petroleum
Corporation (CNPC). Arrow owns coalbed methane assets and a
domestic power business. In August 2024, we announced plans to
develop Phase 2 of Arrow Energy's Surat Gas Project.

Shell has interests in offshore production, LNG liquefaction and

exploration licences in the Browse Basin, and in the North West Shelf
(NWS) and Greater Gorgon areas of the Carnarvon Basin. Woodside
operates the NWS joint venture (Shell interest 16.7%). We have a 25%
interest in the Chevron-operated Gorgon LNG joint venture that
includes offshore production. In the Browse Basin, Shell operates the
Prelude field (Shell interest 67.5%), the Crux gas and condensate
development field (Shell interest 84.5%) and other backfill projects for Photo: Shell Canada Integrated Gas employees at work on a pipeline project,
Fort St. John, British Columbia.
the Prelude FLNG.

35 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Integrated Gas continued

China Trinidad and Tobago

We develop and produce from the onshore Changbei tight-gas We have interests in three concessions with producing fields: Central
field under a PSC with China National Petroleum Corporation. Block (Shell interest 65%), North Coast Marine Area (Shell interest
80.5%) and East Coast Marine Area (Shell interest 100%), where in
Egypt July 2024 we took an FID on the Manatee project.
We have a range of venture and concession interests. The Burullus Gas
Company joint venture (Shell interest 25%) operates the West Delta In 2024, we signed a Sales and Purchase Agreement (SPA) with
Deep Marine concession (Shell interest 50%) and supplies gas to the Touchstone Exploration Trinidad Limited for the sale of our interest in
domestic market and an Egyptian LNG plant. The Rashid Petroleum the Central Block facility. We expect to complete this transaction in the
Company (Rashpetco) joint venture (Shell interest 50%) operates the first half of 2025.
Rosetta concession (Shell interest 100%). The El Burg Offshore
Company (EBOC) joint venture (Shell interest 30%) operates the El We have a 100% interest in exploration blocks 5(c)REA, 5(d) and 6(d).
Burg offshore concession (Shell interest 60%). We also have a 50% interest in exploration blocks 25a, 25b and 27 in
the Columbus Basin. We operate Block 27 and bp is the operator of
We also have interests in several exploration concessions in the Nile the remaining two. Furthermore in 2024, we signed the PSC for
Delta and the wider East Mediterranean. modified block U(c) (Shell share 100%).

Oman Other
We have a concession agreement for the development and production We also have interests in Barbados, Colombia, Cyprus, Tanzania and
of natural gas and condensate in the Shell-operated Block 10 (Shell Venezuela.
interest 53.45%). We have a separate gas sales agreement and oil
supply agreement for production from the block. We also have an Trading and Optimisation
exploration and production-sharing agreement for the exploration and Our trading organisation markets and sells a portion of our share of
appraisal of natural gas and condensate in the Shell-operated Block 11 equity production of LNG and third-party LNG through our UK, UAE
(Shell interest 67.5%). and Singapore trading hubs. We have term sales contracts for most of
our LNG liquefaction and term purchase contracts. Our shipping
Qatar network, regasification terminals, and ability to buy and deliver spot
Under a development and production-sharing contract with the cargoes from third parties enable us to optimise the income we
government, we operate the fully integrated Pearl GTL plant (Shell generate from our LNG cargoes. For example, if a customer no longer
interest 100%). Pearl GTL has the capacity to produce, process and needs a scheduled cargo, we can deliver it to another customer.
transport 1.6 billion standard cubic feet per day (scf/d) of gas from Similarly, if a customer needs an additional cargo not available from
Qatar's North Field. our own production, we contract with third parties to deliver that
cargo. We conduct paper trades, primarily to manage commodity
We have a 30% interest in QatarEnergy LNG N(4), an integrated price risk related to sales and purchase contracts.
onshore gas-processing facility operated by QatarEnergy LNG, which
can produce around 1.4 billion scf/d of gas from Qatar's North Field.
We also have a 25% interest in the QatarEnergy LNG NFE(2) joint
venture, which owns a 25% interest in the North Field East (NFE)
project. Shell's ownership of NFE via the joint venture is 6.25%. In
addition, we have a 25% interest in the QatarEnergy LNG NFS(2) joint
venture which owns a 37.5% interest in the North Field South (NFS)
project. Shell's ownership of NFS via the joint venture is 9.375%.

Russia
In 2022, Shell announced its intent to withdraw in a phased manner
from its involvement in all Russian hydrocarbons, including crude oil,
petroleum products, gas and LNG. Shell still holds a 27.5% (minus one
share) interest in Sakhalin Energy Investment Company Ltd. (SEIC), a
Bermudan entity, which purportedly no longer holds any licences, rights
and obligations in Sakhalin-2. Shell still holds one long-term LNG
purchase contract with a Novatek entity.

36 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Integrated Gas continued

Increasing natural
Shell QGC has long used advanced technology such as sensors,
drones and satellites to detect potential methane leaks from its
extensive infrastructure and improve emissions reporting. This

gas and LNG

has helped QGC reduce reported methane emissions by 70%
compared with 2016. Shell's aim is to maintain methane emissions
intensity for global operated oil and gas assets below 0.2%,

production in
which we met in 2024, and achieve near-zero methane emissions
by 2030 [A].

Australia
Shell QGC contributes significantly to Australia's economy through
the stable supply of gas for power generation, manufacturing and
transport. It also supports local communities through employment
programmes and initiatives, and provides educational support, skills
development training and economic development assistance for
We continue to grow our natural gas and liquefied natural First Nations people and communities. In 2024 alone, Shell QGC
gas (LNG) businesses in Queensland, Australia, by supplying spent AUD 322 million with local suppliers in regional Queensland.
increasing volumes of natural gas to the domestic market and
LNG to customers in Asia.

Shell QGC (Shell interest between 44% and 74%) produces

natural gas from wells drilled into coal seams in the Surat Basin.
Extending across several thousand square kilometres, Shell QGC's
operations span around 3,500 wells (gross), gas processing
infrastructure and the two-train Shell-operated QCLNG facility
on Curtis Island.

In 2024, QGC celebrated 10 years of LNG production

and export by achieving its highest production levels ever.

We also announced plans to develop Phase 2 of Arrow

Energy's Surat Gas Project (Shell interest 50%, non-operated)
in Queensland, which is expected to contribute around 22,400
barrels of oil equivalent (130 million standard cubic feet) per day
at peak production. First gas is expected in 2026. Gas from the
project will flow to Shell's QCLNG facility to meet long-term
contracts and supply domestic customers. 1. Shell QGC is a leading natural gas producer in Queensland, Australia.
QGC includes a two-train LNG facility (pictured), which produces LNG for
international markets.
Long-term supplies of Australian LNG can help support the energy
security and net-zero emission ambitions of countries in Asia. 2. Staff at Shell QGC's training centre in Chinchilla, Queensland. Shell QGC
QCLNG has shipped more than 1,100 cargoes of LNG to has employed more than 400 apprentices and trainees in the past decade.
customers since it began operating in 2014. The increase in
[A] On an intensity basis.
production capacity at QGC and Arrow Energy will make a
significant contribution to Shell's plan to grow its LNG business.

37 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value

Upstream
The Upstream segment includes exploration
and extraction of crude oil, natural gas and
natural gas liquids. It also markets and
transports oil and gas, and operates the
infrastructure necessary to deliver them
to the market. Shell has activities in deep
water and conventional oil and gas.

7.8 8.4
Segment earnings ($ billion) Adjusted Earnings ($ billion)
(2023: 8.5) (2023: 9.8)

21.2 1,831
Cash flow from operating Production (thousand boe/d)
activities ($ billion) (2023: 1,800)
(2023: 21.5)

38 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Upstream continued

In 2024, Upstream delivered consistent performance through Key metrics [A]

improved operations, cost reductions, portfolio optimisation and
strategic investments. Our assets improved their availability and $ million, except where indicated
reliability, and we completed several major scheduled maintenance 2024 2023 2022
activities ahead of time, paving the way for higher production. We Segment earnings*[B] 7,772 8,540 16,258
reached several milestones as part of our strategy to focus on high-
margin basins, including investments in projects like the Atapu-2 Identified items (623) (1,267) (1,096)
field, which will increase our offshore production capacity in Brazil, Adjusted Earnings* [B] 8,395 9,806 17,355
and achieving first gas from Malaysia's Jerun field. We also took Adjusted EBITDA* [B] 31,264 30,622 42,144
the final investment decision on the Vito waterflood project in the
Cash flow from operating activities 21,244 21,450 29,641
Gulf of America, and on Bonga North in the Gulf of Guinea —
demonstrating how we can secure long-term value from existing Cash capital expenditure* 7,890 8,343 8,143
assets. Our Whale platform, also in the Gulf of America, started Liquids production available for sale
production in January 2025 and is an example of how we are (thousand b/d) 1,320 1,325 1,333
building on four decades of deep-water expertise and replicating Natural gas production available for sale
innovative projects for more value. See "Outlook" on pages 16-17 (million scf/d) 2,964 2,754 3,272
for our Capital Markets 2025 investor update. Total production available for sale
(thousand boe/d) 1,831 1,800 1,897
Business conditions
[A] See Note 7 to the "Consolidated Financial Statements" which includes an explanation of
For the business conditions relevant to Upstream, see "Market the reporting segment changes applicable from 2024.
overview" on pages 28-30. [B] Segment earnings, Adjusted Earnings, and Adjusted EBITDA are presented on a current
cost of supplies basis.

Financial delivery Cash flow from operating activities

Cash flow from operating activities for 2024 was primarily driven by
Earnings 2024-2023 Adjusted EBITDA, partly offset by tax payments of $7,851 million and
Segment earnings decreased by $768 million compared with 2023. This the timing impact of dividends (net of profits) from joint ventures and
reflected unfavourable tax movements ($1,289 million), lower realised associates of $946 million.
prices (a decrease of $949 million) and higher well write-offs (an increase
of $541 million), partly offset by the comparative favourable impact of Shell's policy is to settle the inter-segment use of tax attributes between
$962 million mainly relating to gas storage effects. Segment earnings in business segments. This settlement is usually made in cash but in certain
2024 also included a loss of $325 million related to the impact of the instances there is no cash settlement. In 2024, the Integrated Gas
weakening Brazilian real on a deferred tax position, net impairment segment's deferred tax assets ($974 million) were mainly used by the
charges and reversals of $323 million and charges of $214 million Upstream ($759 million) and Chemicals and Products ($183 million)
related to redundancy and restructuring, partly offset by gains of $638 segments, for which no cash settlement was made.
million related to the impact of inflationary adjustments in Argentina on a
deferred tax position. These charges and gains are part of identified items Cash capital expenditure
and compare with 2023, where segment earnings included net Cash capital expenditure in 2024 was lower compared with 2023. The
impairment charges and reversals of $642 million, and net charges of decrease was mainly a result of projects ramp-up in the Gulf of America
$295 million related to the impact of the weakening Argentine peso and and Brazil in 2023. This was partially offset by higher spend from
strengthening Brazilian real on a deferred tax position. projects in Nigeria and the UK in 2024. Cash capital expenditure* is
expected to be around $7 billion in 2025.
Adjusted Earnings and Adjusted EBITDA were driven by the same
factors as the segment earnings and adjusted for identified items. Operational performance
Prior year earnings summary Production available for sale
Segment earnings, compared with 2022, mainly reflected lower In 2024, liquids production was flat and natural gas production
realised oil and gas prices (decrease of $5,696 million) and lower increased by 8%, compared with 2023.
volumes (decrease of $2,001 million).
Total production, compared with 2023, increased mainly due to new
Segment earnings in 2023 also included net impairment charges and liquids and gas production, partly offset by field decline.
reversals of $642 million, and net charges of $295 million, which related
to the impact of the weakening Argentine peso and strengthening
Brazilian real on a deferred tax position. These charges and gains are Strategic progress
part of identified items and compare with 2022, where segment earnings
included net impairment reversals and charges of $853 million, and Portfolio and business developments
charges of $1,385 million relating to the EU solidarity contribution and Significant portfolio and business developments:
$802 million relating to the UK Energy Profits Levy. ￮ In May 2024, the Petrobras-operated Atapu consortium (Shell interest
16.7%) announced a final investment decision (FID) for the Atapu-2
Adjusted Earnings and Adjusted EBITDA were driven by the same project, a second floating production, storage and offloading (FPSO)
factors as the segment earnings and adjusted for identified items. vessel to be deployed at the Atapu field in Brazil's offshore Santos basin.
￮ In July 2024, first gas was achieved at the Jerun field (Shell interest
* Non-GAAP measure (see page 445). 30%) in Malaysia. Jerun is operated by SapuraOMV Upstream
(40%) in partnership with our subsidiary Sarawak Shell Berhad and
PETRONAS Carigali Sdn Bhd (30%).
￮ In August 2024, we announced an FID on a waterflood project at
our Vito asset in the Gulf of America. Water will be injected into the
reservoir formation to displace additional oil.

39 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Upstream continued

￮ In October 2024, we announced the start of production of the FPSO ￮ Lease agreements, which are typically used in North America and
Marechal Duque de Caxias in the Mero field, in the pre-salt area of are usually governed by terms similar to licences. Participants may
the Santos Basin, offshore Brazil. Also known as Mero-3, the FPSO include governments or private entities. Royalties are paid either in
has an operational capacity of 180,000 barrels of oil per day (Shell cash or in kind.
share 19.3%). ￮ Production-sharing contracts (PSCs) entered into with a government,
￮ In December 2024, we, along with Equinor ASA, announced to state-owned company or government-run oil and gas company. PSCs
combine our UK offshore oil and gas assets and expertise to form a generally oblige the independent oil and gas company, as
new company which will be the UK North Sea's biggest independent contractor, to provide all the financing and bear the risk of
producer. On deal completion, the new independent producer will exploration, development and production activities in exchange for
be jointly owned by Equinor (50%) and Shell (50%). Completion of a share of the production. Usually, this share consists of a fixed or
the transaction remains subject to approvals and is expected by the variable part that is reserved for the recovery of the contractor's cost
end of 2025. (cost oil). The remaining production is split with the government,
￮ In December 2024, we announced a final investment decision (FID) on state-owned company or government-run oil and gas company on a
Bonga North, a deep-water project off the coast of Nigeria. Shell (55%) fixed or volume/revenue-dependent basis. In some cases, the
operates the Bonga field in partnership with Esso Exploration and government, state-owned company or government-run oil and gas
Production Nigeria Ltd. (20%), Nigerian Agip Exploration Ltd. (12.5%), company will participate in the rights and obligations of the
and TotalEnergies Exploration and Production Nigeria Ltd. (12.5%), on contractor and will share in the costs of development and
behalf of the Nigerian National Petroleum Company Limited. production. Such participation can be across the venture or on a
￮ In January 2025, we announced the start of production at the Shell- field-by-field basis. Additionally, as the price of oil or gas increases
operated Whale floating production facility in the Gulf of America. above certain predetermined levels, the independent oil and gas
The Whale development is owned by Shell (60%, operator) and company's entitlement share of production normally decreases, and
Chevron U.S.A. Inc. (40%). vice versa. Accordingly, its interest in a project may not be the same
￮ In February 2025, we announced production restart at the Penguins as its entitlement.
field in the UK North Sea with a modern floating, production,
storage and offloading (FPSO) facility (Shell 50%, operator; NEO Europe
Energy 50%). The previous export route for this field was via the Germany
Brent Charlie platform, which ceased production in 2021 and is Shell is a 50% shareholder in BEB Erdgas und Erdoel GmbH & Co.
being decommissioned. KG (BEB), which owns interests in various concessions, mainly in
￮ In February 2025, we signed an agreement to acquire a 15.96% Lower Saxony. ExxonMobil Production Deutschland GmbH has a
working interest from ConocoPhillips Company (COP) in the Shell- service contract with BEB, under which it provides operating services
operated Ursa platform in the Gulf of America. Shell's working to BEB for most of the concessions.
interest in the platform, pipeline and associated fields will increase
from around 45.39% to a maximum of 61.35%. The transaction is Italy
subject to regulatory and other conditions, and is expected to be Shell has a 39% interest in the Val d'Agri producing concession,
completed by the end of the second quarter of 2025. operated by ENI S.p.A., and a 25% interest in the Tempa Rossa
￮ On March 13, 2025, we completed the sale of The Shell Petroleum producing concession, operated by TotalEnergies EP Italia S.p.A.
Development Company of Nigeria Limited (SPDC) to Renaissance.
Netherlands
Business and property Shell and ExxonMobil are 50:50 shareholders in Nederlandse
Our subsidiaries, joint ventures and associates are involved in all Aardolie Maatschappij B.V. (NAM). NAM holds a 60% interest in the
aspects of upstream activities. These activities include land tenure and onshore low-calorific Groningen gas field (the remaining 40% interest
the exploration, development and production of crude oil, natural gas is held by EBN, a Dutch government entity), the Schoonebeek oil
and natural gas liquids. They also include the marketing and field, some 25 smaller hydrocarbon production licences and two
transportation of oil and gas, as well as the operation of the underground gas storage facilities.
infrastructure necessary to deliver them to market.
Historical production from the Groningen field induces earthquakes
The conditions of the leases, licences and contracts under which oil and which have led to damage claims, security concerns, and a
gas interests are held vary from country to country. In almost all cases strengthening operation to make buildings earthquake resistant.
outside North America, legal agreements are generally granted by, or
entered into with, a government, state-owned company, government- In June 2018, NAM's shareholders and the Dutch government signed a
run oil and gas company or agency. The exploration risk usually rests Heads of Agreement (HoA) to inter alia reduce, and eventually cease,
with the independent oil and gas company. In North America, these production from the Groningen field. Under the terms of the HoA, it
agreements may also be with private parties that own mineral rights. was agreed that the Dutch government would pass on to NAM costs
Of these agreements, the following are most relevant to our interests: insofar as the costs corresponded to NAM's liability. Further
￮ Licences (or concessions), which entitle the holder to explore for agreements were signed to implement the HoA. Shell has put in place
hydrocarbons and exploit any commercial discoveries. Under a an appropriate security to fulfil its obligation under the HoA.
licence, the holder bears the risk of exploration, development and
production activities, and is responsible for financing these activities. In NAM is working with the Dutch government to fulfil its financial
principle, the licence holder is entitled to the totality of production less obligations for earthquake costs. These include compensating for
any royalties in kind. The government, state-owned company or damage caused by the earthquakes and paying to strengthen houses
government-run oil and gas company may sometimes enter into a joint where this is required for safety. In 2022, NAM started arbitrations with
arrangement as a participant, sharing the rights and obligations of the the Dutch government to have its financial liability determined for the
licence but usually without sharing the exploration risk. In a few cases, costs the Dutch government has charged to NAM in relation to the
the state-owned company, government-run oil and gas company or strengthening operation and the handling of claims for physical damage
agency has an option to purchase a certain share of production. to property. The outcomes of these arbitrations are expected in 2025.

40 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Upstream continued

On the instructions of the Dutch government, production at the Session (Outer House) in Scotland ruled, in legal proceedings brought
Groningen field ceased on October 1, 2023, and a law was passed to by the non-governmental organisation, Greenpeace, that the original
shut down the field permanently from April 19, 2024. On July 18, consents for Jackdaw are no longer valid, though importantly, work on
2024, NAM signed an agreement to divest OneGas East, its offshore the project can continue while new consents are being sought. This
asset in the Dutch North Sea, to Tenaz Energy. The transaction is ruling has not been appealed.
expected to be completed by mid-2025.
Within Shell's UK exploration portfolio, there is an ongoing judicial
See Note 32 NAM (Groningen gas field) litigation in the "Consolidated Financial
review by Oceana UK challenging the award of tranche three of the
Statements" on page 309.
33rd licensing round awards (including two licences awarded to Shell
in the Mid-North Sea High area) which is expected to be heard by the
High Court in March 2025.
Norway
Shell holds participating interests in 15 production licences on the In July 2024, Shell signed an agreement with RockRose Energy Limited,
Norwegian continental shelf, and is the operator of three of these. In a subsidiary of Viaro Energy, to divest its equity stake in 11 gas fields
2024, Shell was awarded one new licence, relinquished four licences and one exploration prospect in the UK Southern North Sea, as well as
and divested the Linnorm gas field. Shell has participating interests in the onshore gas processing terminal in Bacton, England. The sale is
two producing gas fields in Norway: Shell-operated Ormen Lange subject to regulatory approvals and is expected to complete in 2025.
(Shell interest 17.8%) and Equinor-operated Troll (Shell interest 8.19%).
In 2024, significant projects were executed at both assets. The Troll B In July 2023, the UK government announced that the Acorn carbon
and C platforms were partially electrified, which is expected to reduce capture, utilisation and storage project (Shell interest 30%) had been
annual emissions of CO2 by 250,000 tonnes. At Ormen Lange, subsea selected as one of two clusters to enter Track 2 of the UK's cluster
compression, powered from shore, is being installed to enhance gas sequencing process for carbon capture and storage (CCS). In 2024,
recovery. Shell had expected to start more detailed discussions about the project
with the UK government, but these have not yet commenced in earnest.
Additionally, Shell holds a 10% participating interest in the Irpa gas
discovery, operated by Equinor, which is under development. We The Offshore Petroleum Regulator for Environment and Decommissioning
operate two licences which are being decommissioned: Knarr and (OPRED) continues to assess the Brent Field decommissioning
Gaupe. We are also the technical service provider for the Nyhamna programme for the Brent gravity-based substructures. The Brent Charlie
gas facility, operated by Gassco, which processes and exports gas topside was lifted and transported to shore in July 2024.
from several Norwegian fields.
Decommissioning of the Heather A platform and Curlew FPSO asset
UK continued in 2024. Shell is also continuing with the campaign of
Shell operates a number of assets on the UK continental shelf, mostly subsea well plug and abandonment activity to decommission 25 wells
under unincorporated joint-venture agreements. Shell also has non- in the Central North Sea which began in 2023.
operated positions in the West of Shetland area, including the Clair
(Shell interest 27.97%) and Schiehallion (Shell interest 44.89%) fields, Rest of Europe
which are both operated by bp. Shell also has interests in Albania.

In December 2024, Shell, along with Equinor ASA, announced a Asia (including the Middle East)
combination of our UK offshore oil and gas assets and expertise to Brunei
form a new company which will be the UK North Sea's biggest Shell and the Brunei government are 50:50 shareholders in Brunei
independent producer. On deal completion, the new independent Shell Petroleum Company Sendirian Berhad (BSP). BSP has long-term
producer will be jointly owned by Equinor (50%) and Shell (50%). onshore and offshore oil and gas concession rights and sells most of its
Completion of the transaction remains subject to approvals and is gas production to Brunei LNG Sendirian Berhad, with the remainder
expected by the end of 2025. sold in the domestic market.

In April 2023, Shell restarted operations at the Pierce field (Shell interest In addition to our interest in BSP, we have a non-operated 35%
92.5%) in the North Sea after a major redevelopment to enable gas interest in the offshore Block B concession, which is operated by
production after years of the field producing only oil. The Haewene Brim Hibiscus Petroleum. The gas and condensate are produced from the
floating production, storage and offloading (FPSO) vessel, which Maharaja Lela field.
produces from the Pierce field, was shut down between August 2023
and April 2024 to allow completion of mooring lines integrity works. The We have a non-operated 20% interest under a PSC in a gas-holding
FPSO vessel is fully operational and back in production. area for deep-water Block CA2, which is operated by Petronas.

The operated Penguins FPSO vessel (Shell interest 50%) was We operate the deep-water Block CA1 (Shell interest 86.95%) in which
successfully moored in the northern North Sea in September 2024 with the Jagus East field is located and forms part of the unitised GKGJE
first oil in February 2025. field under a PSC. As referred to in the Malaysia section the unitised
GKGJE field is operated by Shell Malaysia.
Victory (Shell interest 100%), a subsea tieback to the Total-operated
Greater Laggan Area facilities, is on track for an expected start-up in See "Integrated Gas" on pages 31-37.
2026. Priority work activities for 2024 were delivered ahead of
schedule with new subsea pipelines installed in preparation for well
execution in 2025. Iraq
Shell has a 44% interest in the Basrah Gas Company, which gathers,
Significant progress has also been made on the Jackdaw project (Shell treats and processes associated gas that was previously flared from
interest 100%) in the North Sea and it is expected to become the Rumaila, West Qurna 1 and Zubair fields. Processed gas and
operational in the mid-2020s. On January 29, 2025, the Court of associated products, such as condensate and LPG, are sold to the
domestic and international markets.

41 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Upstream continued

We have several matters in dispute involving non-operated ventures and

the Republic of Kazakhstan, including court proceedings in respect of a
sulphur permitting outcome and two arbitrations under the applicable
production-sharing agreements. There remains a high degree of
uncertainty regarding the outcomes, as well as the potential effect on
future operations, earnings, cash flows and Shell's financial condition.

See Note 32 to the "Consolidated Financial Statements" on pages 308-310.

Kuwait
Shell Kuwait Exploration and Production B.V. (Shell interest 100%)
holds three enhanced technical service agreements (ETSA) with
Karachaganak Expansion Project 1A completed Kuwait Oil Company. The ETSA Jurassic Gas runs to 2026, the ETSA
Karachaganak is one of the world's largest gas and condensate Heavy Oil and ETSA Conventional Oil run to 2027.
fields. It produces around 260,000 barrels of oil and
condensate per day, which are processed by Karachaganak Malaysia
Petroleum Operating B.V. (KPO) for export. Shell is the joint Shell explores for and produces oil and gas off the coast of Sabah
operator, along with Eni, of the Karachaganak field (Shell and Sarawak under 20 PSCs, in which our interests range from 20%
interest 29.3%). to 92.5%.

In 2024, KPO completed the Karachaganak Expansion Project Offshore Sabah

1A (KEP1A) to maintain production levels and extend the field's We operate two producing oil fields: the Malikai deep-water field
long productive life by reinjecting gas into the reservoir through (Shell interest 35%) in the Block G PSC, and the unitised Gumusut-
a new fifth gas compressor. Around 7,000 local people were Kakap Geronggong-Jagus East (GKGJE) field in the Block J PSC which
employed during construction. straddles the Malaysia-Brunei border (Shell interest 37.89%).

The project was completed one month ahead of schedule, after We hold a 50% operated participating interest in exploration phase
starting in December 2020, and was delivered within budget. Block 2W, Block X, Block ND6 and Block ND7 PSCs. Our exploration
This success can be attributed to the resilience of the team who activities in Block ND6 and Block ND7 PSCs were suspended in 2005
worked hard to achieve the result, despite the disruption caused because of Malaysia's border disputes with Indonesia.
by the COVID-19 pandemic and the nearby Russia‒Ukraine war.
Our non-operated portfolio includes two producing fields: the unitised
KEP1A is a key example of Shell's focus on performance and Siakap North-Petai deep-water field in Block G PSC (Shell interest
discipline. 21%) and the Kebabangan Cluster PSC (Shell interest 30%). We also
hold interests in exploration phase Block SB 2K, Block N and Block
KPO is now working on the installation of a sixth gas reinjection 2V PSCs, which range from 25.1% to 40%. In 2024, we signed a new
compressor as part of Karachaganak Expansion Project 1B to non-operated PSC for Ubah Cluster, a deep-water project off the
maintain pressure in the reservoir and keep production levels coast of Sabah (Shell interest 35%).
stable. The project is scheduled for completion in 2026.
Photo: Staff at Karachaganak, Kazakhstan. Offshore Sarawak
We are the operator of four PSCs producing gas and oil, holding
interests ranging from 30% to 75% under the MLNG, SK308, SK408
and SK318 PSCs. Nearly all the gas produced offshore Sarawak is
Kazakhstan
supplied to Malaysia LNG (MLNG) and to our gas-to-liquids plant in
Shell is the joint operator with ENI S.p.A. of the onshore Karachaganak
Bintulu. We also continue to explore in the MLNG PSC.
oil and condensate field (Shell interest 29.3%) in north-west
Kazakhstan which covers more than 280 square kilometres.

We also have a 16.8% interest in the North Caspian Sea PSA, which
includes the Kashagan field in the Kazakh sector of the Caspian Sea.
The North Caspian Operating Company is the operator. This shallow-
water field covers around 3,400 square kilometres.

Shell has a 7.4% interest in the Caspian Pipeline Consortium (CPC),

which owns and operates an oil pipeline running from the Caspian
Sea to the Black Sea across parts of Kazakhstan and Russia. We hold
our interest in the CPC via three legal entities. Two of these are wholly
owned by Shell and the other is a joint venture with Rosneft, Rosneft-
Shell Caspian Ventures Ltd (Cyprus) (RSCV) (Shell interest 49%),
which was formed in 1996 to own and manage pipeline capacity
rights. We continue to manage our interest in CPC held through RSCV
in full compliance with applicable laws, including sanctions. Photo: The Jerun offshore gas field (Shell interest 30%) in Malaysia achieved first gas
in July 2024, adding to Shell's contribution to Malaysia's offshore gas production.

42 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Upstream continued

The SK318 PSC contains the Timi field (Shell interest 75%), the unitised Africa
Rosmari field (Shell interest 68%) and the unitised Marjoram field (Shell Nigeria
interest 72%). Rosmari-Marjoram is a natural gas project situated In 2024, Shell operated a number of interests in onshore and offshore
around 220 kilometres off the coast of Bintulu, comprising a remotely oil exploration and production assets in Nigeria.
operated offshore platform and onshore gas plant. These fields will
mainly be powered by renewable energy from solar power offshore See "Risk factors" on pages 138.
and hydroelectric power onshore.

We hold participating interests ranging from 45% to 92.5% in the Onshore

exploration phase Block SK437, Blocks SK439/440 and Block 3B The Shell Petroleum Development Company of Nigeria Limited (SPDC)
PSCs. In 2024, we signed a new PSC for Block 5E (Shell interest 50%), is the operator of the SPDC joint venture (SPDC JV, Shell interest 30%)
a deep-water block off the coast of Sarawak. which has 15 Niger Delta onshore oil mining leases (OMLs) and three
shallow-water leases (OML 74, 77 and 79).
In our non-operated portfolio, we hold a 20% interest in the Pegaga
field under the Block SK320 PSC and a 30% interest in the Jerun, Larak On March 13, 2025, Shell completed the sale of SPDC to Renaissance.
and Bakong fields which are part of the SK408 PSC. Jerun achieved As part of the transaction and ongoing business arrangements, Shell
first gas in July 2024. provided loan facilities for amounts up to $2.5 billion. Shell will
continue to support Renaissance in the development of its gas reserves
See "Integrated Gas" on pages 31-37. and retain an interest in the performance of the export feedgas
business.

Oman Offshore
Shell has a 34% interest in Petroleum Development Oman (PDO), Our main offshore deep-water activities are carried out by our wholly
which operates the Block 6 oil concession. Shell is entitled to 34% of oil owned subsidiary Shell Nigeria Exploration and Production Company
produced from Block 6 through its interest in Private Oil Holdings Limited (SNEPCo). SNEPCo has interests in three deep-water blocks
Oman Ltd. The government of Oman has a 60% interest in PDO and that are under PSC terms: the producing assets Bonga (OML 118) and
the Block 6 oil concession through its wholly owned company, Energy Erha (OML 133), and the non-producing asset Bolia Chota (OML 135).
Development Oman (EDO). PDO operates a concession area of about SNEPCo operates OML 118 (Shell interest 55%), including the Bonga
90,000 square kilometres and has more than 200 producing oil fields. field FPSO vessel. We also operate OML 135 (Shell interest 55%),
encompassing the Bolia and Doro fields. We have a 43.8% non-
We have a 50% interest in Block 42 under an exploration and operated interest in OML 133 (including the Erha FPSO). In addition,
production-sharing agreement (EPSA) where Shell is the operator. We SNEPCo holds a 40% interest in a non-producing shallow-water lease
also operate in Block 55 under an EPSA (Shell interest 100%). We are (OML 144) that is held in a joint venture with Sunlink Energies.
in the process of relinquishing our interests in Block 42 and Block 55 to
the government. In December 2024, we announced a final investment decision (FID) on
Bonga North (OML 118), a deep-water project off the coast of Nigeria.
See "Integrated Gas" on pages 31-37.
Authorities have investigated our involvement in the 2011 settlement
of litigation pertaining to OPL 245. In January 2020, criminal charges
Syria alleging disobeying direction of law related to tax waivers were filed
Shell holds a 65% interest in Syria Shell Petroleum Development B.V. in Nigeria against Shell Nigeria Ultra Deep Ltd., SNEPCO, and third
(SSPD), a joint venture between Shell and the China National Petroleum parties including Nigeria Agip Exploration Limited (NAE). In March
Corporation. SSPD holds a 31.25% interest in Al Furat Petroleum 2024, the Court approved the defendant's no-case submission and
Company, a Syrian joint stock company whose role was to perform dismissed the charges against all defendants.
petroleum operations. Shell also holds a 70% interest in two exploration
licences via Shell South Syria Exploration B.V. In December 2011, in
See Note 32 to the "Consolidated Financial Statements" on pages 308-310 for more
compliance with international sanctions on Syria, including European
information about OPL 245.
Council Decision 2011/782/CFSP, Shell suspended all exploration and
production activities in Syria as well as its participation and/or support in
activities related to Al Furat Petroleum Company. SSPD continued to fulfil Business update
minimum contractual obligations towards the Syrian finance and labour Security issues, sabotage and crude oil theft in the Niger Delta
ministries, in compliance with applicable trade control laws. In 2024, as continued and remained significant challenges to our onshore
part of the minimum contractual obligations, payments for taxes related operations in 2024. We will continue to monitor the situation closely
to salary and social security amounted to $282. In addition, in 2024, in and evaluate implications for the integrity of our infrastructure and the
compliance with applicable sanctions on Syria, we reimbursed an sustainability of our current operations. We continue to put the safety
employee $713.05 for the renewal of his and his son's Syrian passport, of our employees and contractors first.
which was paid to the Syrian Embassy in Kuwait.
In our Nigerian operations, we face various risks and adverse
Rest of Middle East and Asia conditions which could have a significant adverse effect on our
Shell has certain interests in the United Arab Emirates including a 15% operational performance, earnings, cash flows and financial condition.
shareholding in the Abu Dhabi Gas Industries Limited ("ADNOC Gas
Processing") operating joint venture which is a key supplier of natural
See "Respecting nature" on pages 109-113.
gas in the country.

43 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Upstream continued

There are limitations to the extent to which we can mitigate these risks. We continue to produce from the Coulomb field (Shell interest 100%),
We monitor the security situation and liaise with host communities, and which ties into the Na Kika platform (Shell interest 50%) and which is
governmental and non-governmental organisations to help promote co-owned and operated by BP Exploration and Production Inc.
peaceful and safe operations for our people and local communities.
We test the economic and operational resilience of our Nigerian We continued exploration, development and decommissioning
projects against a range of assumptions and scenarios. When we activities in the Gulf of America in 2024.
participate in joint ventures in Nigeria, we require that they operate in
accordance with good industry practice. We seek to proportionally In February 2024, we began production at Rydberg (Shell interest
share risks and funding commitments with joint-venture partners. As a 80%), a subsea tie-back to the Shell-operated Appomattox production
result of the completion of the sale of SPDC, our exposure to the risks hub (Shell interest 79%). Rydberg is expected to produce up to 16,000
arising from onshore operations is expected to reduce. Shell has other barrels of oil equivalent per day (boe/d) at peak rates expected
businesses in Nigeria that are outside the scope of the announced between September 2025 to January 2026.
transaction.
In August 2024, an FID was taken on a waterflood project at Vito
See "Risk factors" on page 138.
where water will be injected into the reservoir formation to displace
additional oil. The process is due to begin in 2027 and is expected to
enhance volume capacity at the Vito field.
We support the Nigerian government's efforts to improve the efficiency,
functionality and domestic benefits of Nigeria's oil and gas industry. In December 2024, FID was announced on a Phase 3 Silvertip project,
We report spills and how we respond to spills, including those that are which will deliver two wells to boost production at the Shell-operated
caused by third-party interference. We implement a maintenance Perdido spar. These wells, located in the Silvertip Frio reservoir (Shell
strategy to support sustainable equipment reliability and we have a interest 40%), are expected to collectively produce up to 6,000 barrels
multi-year programme to reduce routine flaring of associated gas. of oil equivalent per day (boe/d) at peak rates. First production is
expected in 2026.
See "Our journey to net zero" on page 95.
In January 2025, we began production at the Shell-operated Whale
stand-alone host (Shell interest 60%). Whale is expected to produce
Rest of Africa up to 100,000 boe/d at peak rates in 2027.
Shell also has interests in Algeria, Namibia, São Tomé and Príncipe,
South Africa and Tunisia. In February 2025, we signed an agreement to acquire a 15.96%
working interest from ConocoPhillips Company (COP) in the Shell-
In 2021, Shell announced plans to hand back upstream assets operated Ursa platform in the Gulf of America. Shell's working interest
associated with the Miskar and Hasdrubal concessions to the in the platform, pipeline and associated fields will increase from around
government of Tunisia. In June 2022, Shell handed back the Miskar 45.39% to a maximum of 61.35%. The transaction is subject to
concession upon its expiry. Discussions are ongoing with the regulatory and other conditions, and is expected to be completed by
competent authorities for the hand-back/relinquishment of Hasdrubal the end of the second quarter of 2025.
concession.
Rest of North America
North America Shell also has deep-water licences and one shallow-water licence
USA in Mexico, and we are in the process of relinquishing them to the
The majority of our oil and gas interests in the USA comprise leases government.
for federal offshore blocks in the deep waters of the Gulf of America.
Such leases usually have a fixed primary term and, once production South America
is established, remain in effect through continued production, subject Argentina
to compliance with the relevant terms and provisions (including Shell has interests in the onshore Vaca Muerta Basin in the Neuquén
applicable laws and regulations). Province. We are the operator of the Cruz de Lorena, Sierras Blancas,
Coiron Amargo Sur Oeste (Shell interest 90% in each), and Bajada de
In 2024, we relinquished our interest in one licence in the North Slope Añelo (Shell interest 50%) areas. We have non-operated interests in
area of Alaska. the areas of Rincon La Ceniza and La Escalonada (Shell interest 45% in
each), both operated by Total Austral S.A., and in the Bandurria Sur
Gulf of America area (Shell interest 30%), operated by YPF S.A. Shell has a
Shell's major production area in the USA is the Gulf of America. We participating interest in the oil pipeline connecting Sierras Blancas and
have a total of 304 active federal offshore leases where Shell is the the regional distribution network and is the administrator in the joint
operator, and 62 active federal offshore leases where Shell has a property agreement that regulates its operation (Shell interest 60%).
non-operated interest. Shell also has a participating interest in the oil pipeline in the northern
area of the basin which connects to the Pacific Evacuation Route (Shell
We are the operator of 10 production hubs: Mars (Shell interests interest 13.3%), operated by YPF S.A.
33.7% to 100%), Olympus (Shell interests 71.5% to 100%), Auger
(Shell interests 27.5% to 100%), Perdido (Shell interests 33.3% to In the north-western Argentina basin, we have a non-operated interest
40%), Ursa (Shell interests 45.4% to 100%), Enchilada/Salsa (Shell in the onshore Acambuco area (Shell interest 22.5%), operated by Pan
interests 37.5% to 75%), Appomattox (Shell interests 79% to 80%), American Energy.
Vito (Shell interest 63.1%), Stones (Shell interest 100%) and Whale
(Shell interest 60%). We also have an interest in the West Delta 143 In addition to the producing interests, we are the operator of two
offshore processing facilities (Shell interest 71.5%). frontier exploration blocks offshore Argentina (Shell interest 60% in
each), and we have a non-operated interest in an adjacent block (Shell
interest 30%) operated by Equinor.

44 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Upstream continued

Brazil
Shell's operates the Bijupirá and Salema fields (Shell interest 80% in
each), which are being decommissioned; the producing BC-10 field
(Shell interest 50%) in the Campos Basin; and the Gato do Mato and
adjacent Sul de Gato do Mato areas in the Santos Basin (Shell interest
50%), which are subject to unitisation and with development options
under evaluation. We also hold interests in 11 exploration blocks in the
Santos Basin (Shell interests 70%), six exploration blocks in the
Barreirinhas Basin (Shell interests 50% to 100%), three in the Campos
Basin (Shell interests 40% to 100%) and one in the Potiguar Basin
(Shell interest 100%).

Our non-operated portfolio consists of eight producing fields in the

offshore Santos Basin:
￮ the Sapinhoá field (Shell interest 30%, operated by Petrobras and
straddling the BM-S-9 and Entorno de Sapinhoá blocks already
unitised);
￮ the Lapa field (Shell interest 30% in Block BM-S-9A, operated by
TotalEnergies);
￮ the Berbigão and Sururu fields (Shell interest 25% in Block BM-S-11A,
operated by Petrobras and subject to ongoing unitisation agreement
discussions);
￮ the Atapu field (Shell interest 16.7% and straddling the BM-S-11A
and Atapu PSC area already unitised);
￮ the Tupi field (Shell interest 23%, already unitised, in Block BM-S-11
and operated by Petrobras);
￮ the Iracema field (Shell interest 25% in Block BM-S-11 and operated
by Petrobras); and
￮ the Mero field in the Libra PSC area (Shell interest 19.3%, already
unitised with an adjoining open area and operated by Petrobras).

In addition to the producing assets, we hold interests in 33 non-

operated exploration blocks: two in the Santos Basin (Shell interests
20% to 40%, operated by Petrobras), two in the Potiguar Basin
(Shell interests 40%, both operated by Petrobras) and 29 blocks in
the Pelotas Basin (Shell interests 30%, all operated by Petrobras).

In October 2024, production started at the Marechal Duque de

Caxias FPSO in the Mero field. Mero is expected to receive one more
FPSO and start producing from it by the end of 2025.

Rest of South America

Shell also has interests in Suriname and Uruguay.

Trading and Supply

Shell markets and trades equity crude oil from its Upstream operations
through our main trading offices in the UK, Singapore, the USA, The
Bahamas and Canada. We are active in most crude oil markets and,
with our global network of supply and distribution activities and shipping
and maritime capabilities, we manage and optimise the supply of crude
to Shell's refineries, and the sale of crude to third-party customers.

45 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Upstream continued

Whale produces Most of Whale's operations can be managed from New Orleans,
which is about 600 kilometres away from the platform. Engineers

first oil in the Gulf

use virtual reality headsets to carry out checks. They also deploy
drones to inspect other areas, keeping the number of people
needed on the platform to a minimum.

of America Whale has been designed to hold just 60 people, compared with
the 180 people that can live on the Shell-operated Appomattox
platform in the Gulf of America, which started production in 2019.
Weighing around 25,000 tonnes, Whale is a third of the weight of
The simplified and cost-efficient Whale platform started oil Appomattox. The smaller scale helped designers to cut the cost of
production in the Gulf of America in January 2025. Whale, building the facility.
operated by Shell, has an estimated peak production of 100,000
barrels of oil equivalent per day -- enough to fuel the daily journeys The Whale development is owned by Shell Offshore Inc. (60%)
of 2.7 million cars in the USA. and Chevron U.S.A. Inc. (40%) and lies 320 kilometres south
of Houston.
Whale is a close replica of the Shell-operated Vito platform, which
started production in the Gulf of America in early 2023. Vito is
significantly smaller than its original design, resulting in lower costs
and emissions. Whale will operate with around 30% lower carbon
intensity over its life cycle than Vito.

Investments in oil and gas platforms such as Whale are needed to

meet the world's energy demand while low-carbon alternatives are
developed and made commercially available. Energy companies
like Shell are finding ways to produce oil and gas with lower
greenhouse gas emissions.

Power turbines are one of the biggest producers of emissions on

offshore platforms. To reduce emissions on Whale, engineers have
fitted waste-heat recovery units to all its power turbines. These units
capture energy that would otherwise be lost to the atmosphere.
This energy is then reused to heat the raw fluids so they can be
exported from the platform.

The process of compressing gas before it is exported to the shore

is another contributor to emissions on offshore facilities. To reduce 1. The Shell-operated Whale platform has a smaller footprint and lower carbon
these emissions on Whale, engineers have installed compressors intensity over its life cycle than earlier platforms.

which use less energy than a typical system. 2. Whale is controlled by remote from New Orleans, some 600 km away.
With just 60 people on board and a simplified, more energy-efficient design,
Whale is reducing costs and emissions.

46 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value

Oil and gas information

This section sets out information about Shell's oil and gas exploration and production activities, which include the extraction of oil, condensates,
natural gas liquids, oil sands and natural gas from their natural reservoirs. These activities are undertaken within the Integrated Gas, Upstream and
the Chemicals and Products (includes oil sands) segments. They do not represent the full extent of the activities of these segments, and exclude
GTL processing, some LNG activities, trading and optimisation, as well as other non-extractive activities.

Proved developed and undeveloped reserves of Shell subsidiaries and Shell share of joint ventures and associates

Crude oil and

natural gas liquids Synthetic crude oil Natural gas Total
(million barrels) (million barrels) (thousand million scf) (million boe)
Shell subsidiaries
At January 1, 2024 3,512 757 23,276 8,283
Increase/(decrease) in 2024:
Revisions and reclassifications 408 (13) (82) 381
Improved recovery 48 — 7 49
Extensions and discoveries 52 — 1,983 394
Purchases and sales of minerals in place 13 16 100 46
Total before taking production into account 521 3 2,008 870
Production [A] (507) (19) (2,726) (997)
Total 14 (16) (718) (127)
At December 31, 2024 3,526 741 22,558 8,156
Shell share of joint ventures and associates
At January 1, 2024 392 — 6,453 1,504
Increase/(decrease) in 2024:
Revisions and reclassifications (5) — 148 21
Improved recovery — — — —
Extensions and discoveries — — 149 26
Purchases and sales of minerals in place — — — —
Total before taking production into account (5) — 297 47
Production [B] (24) — (366) (87)
Total (29) — (69) (40)
At December 31, 2024 363 — 6,384 1,464
Totals
At January 1, 2024 3,904 757 29,729 9,787
Increase/(decrease) before taking production into account 516 3 2,305 917
Production (531) (19) (3,092) (1,084)
Increase/(decrease) (15) (16) (787) (167)
At December 31, 2024 [C] [D] [E] 3,889 741 28,942 9,620
Reserves attributable to non-controlling interest in
Shell subsidiaries at December 31, 2024 — 370 — 370

[A] Includes 41 million boe consumed in operations (natural gas: 238 thousand million scf; synthetic crude oil: 1 million barrels).
[B] Includes 5 million boe consumed in operations (natural gas: 27 thousand million scf).
[C] On March 13, 2025, Shell completed the sale of its Nigerian onshore subsidiary The Shell Petroleum Development Company of Nigeria Limited (SPDC) which holds a 30% interest in the
SPDC JV to Renaissance. As of December 31, 2024, Shell had proved reserves of 453 million boe in SPDC.
[D] Pursuant to Shell's 2017 agreement with Canadian Natural Resources Limited, its remaining mining interest and associated synthetic crude oil reserves will be swapped for an additional 10%
interest in the Scotford Upgrader and Quest CCS project. The transaction is expected to close by the end of the first half of 2025, subject to regulatory approvals. The associated proved
reserves as of December 31, 2024 were 741 million barrels (of which 50% attributable to non-controlling interest).
[E] On December 5, 2024, Shell and Equinor ASA, announced the combination of their UK offshore oil and gas assets and expertise to form a new company which will be the UK North Sea's
biggest independent producer. On deal completion, the new independent producer will be jointly owned by Equinor (50%) and Shell (50%) and 157 million boe (as of December 31, 2024)
of Shell's proved reserves will be contributed to the new joint venture alongside proved reserves contributed by Equinor. Subsequently, Shell will report 50% of the proved reserves of the new
joint venture as part of Shell's share of proved reserves from joint ventures and associates.

47 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Oil and gas information continued

Proved reserves changes, which were mainly because of the decrease of 137 million
Before taking production into account, our proved reserves increased boe in Groundbirch due to low average Alberta Energy Company
by 917 million boe in 2024. This consisted of an increase of 870 million (AECO) prices in 2024, an increase of 102 million boe due to an FID
boe from Shell subsidiaries and an increase of 47 million boe from the on an additional FPSO in Atapu, Brazil, and a decrease of 36 million
Shell share of joint ventures and associates. After taking production spread across other fields. These were offset by an increase of 7 million
into account, our proved reserves decreased by 167 million boe in boe due to de-maturation of PD to PUD, an increase of 420 million boe
2024 to 9,620 million boe at December 31, 2024. due to extensions and discoveries, mainly 286 million boe in Manatee
(T&T), and 134 million boe spread across other fields, an increase
Shell subsidiaries of 49 million boe due to improved recovery, and a net increase
Before taking production into account, Shell subsidiaries' proved of 11 million boe due to purchases and sales of minerals in place.
reserves increased by 870 million boe in 2024. This consisted of an
increase of 521 million barrels of crude oil and natural gas liquids, In addition to the maturation of 617 million boe from PUD to PD,
an increase of 346 million boe (2,008 thousand million scf) of natural 61 million boe were matured to PD as through PUD as a result of
gas and an increase of 3 million barrels of synthetic crude oil. The project execution during the year.
870 million boe increase comprised an increase of 394 million boe
from extensions and discoveries, a net increase of 381 million boe PUD held for five years or more (PUD5+) on December 31, 2024,
from revisions and reclassifications, an increase of 49 million boe amounted to 138 million boe, a decrease of 74 million boe compared
from improved recovery and a net increase of 46 million boe with the end of 2023. The decrease in PUD5+ during 2024 was
related to purchases and sales of minerals in place. driven mainly by changes in Tupi (Brazil), Gbaran (Nigeria) and
Kolo Creek (Nigeria).
After taking into account production of 997 million boe (of which 41
million boe were consumed in operations), Shell subsidiaries' proved The fields with the largest PUD5+ on December 31, 2024, were Assa
reserves decreased by 127 million boe in 2024 to 8,156 million boe. In North (Nigeria) and Penguins (UK). These PUD5+ remain undeveloped
2024, Shell subsidiaries' proved developed reserves (PD) increased by because of delays in drilling operations and security incidents impacting
25 million boe to 6,346 million boe and proved undeveloped reserves facility construction (Nigeria) and due to project delays (UK).
(PUD) decreased by 152 million boe to 1,810 million boe.
During 2024, we spent $8.2 billion on development activities related
Shell share of joint ventures and associates to PUD maturation.
Before taking production into account, the Shell share of joint ventures
and associates' proved reserves increased by 47 million boe in 2024. Delivery commitments
This consisted of an increase of 52 million boe (297 thousand million We sell crude oil and natural gas from our producing operations under
scf) of natural gas, and a decrease of 5 million barrels of crude oil and a variety of contractual obligations. Most contracts generally commit
natural gas liquids. The 47 million boe increase comprised an increase us to sell quantities based on production from specified properties,
of 26 million boe from extensions and discoveries and a net increase although some natural gas sales contracts specify delivery of fixed
of 21 million boe from revisions and reclassifications. and determinable quantities, as discussed below.

After taking into account production of 87 million boe (of which 5 In the past three years, we met our contractual delivery commitments,
million boe were consumed in operations), the Shell share of joint with the notable exceptions of Egypt, Trinidad and Tobago, and
ventures and associates' proved reserves decreased by 40 million Malaysia. The delivery commitments for Egypt and Trinidad and
boe to 1,464 million boe at December 31, 2024. Tobago have been renegotiated. In the period 2025-2027, we are
contractually committed to deliver to third parties, joint ventures and
The Shell share of joint ventures and associates' PD increased by associates a total of some 4,945 billion scf of natural gas from our
9 million boe to 517 million boe, and PUD decreased by 49 million subsidiaries, joint ventures and associates. The sales contracts contain
boe to 947 million boe. a mixture of fixed and variable pricing formulae that are generally
referenced to the prevailing market price for crude oil, natural gas
See "Supplementary information - oil and gas (unaudited)" on pages 313-332 for more or other petroleum products at the time of delivery.
information about proved oil and gas reserves of Shell subsidiaries and the Shell share of
the proved oil and gas reserves of joint ventures and associates. In the period 2025-2027, we expect to meet our delivery commitments
for almost all the areas in which they are carried, with an estimated
74% coming from PD, 4% through the delivery of gas that becomes
Proved undeveloped reserves available to us from paying royalties in cash, and 22% from the
In 2024, Shell subsidiaries' and the Shell share of joint ventures and development of PUD as well as other new projects and purchases. In
associates' PUD decreased by 201 million boe to 2,757 million boe. Malaysia Sabah, one of the third-party gas supply lines remains non-
There were decreases of 617 million boe as a result of maturation to operational. New contracts for Domestic and LNG Markets were
PD, mainly 305 million boe in Kashagan (Kazakhstan), 65 million boe agreed and signed in 2024, resulting in no shortfall in the period
in Mero (Brazil), 38 million boe in Mabrouk North-East (Oman), and 2025-2027.
209 million boe spread across other fields and a net decrease of 71
million boe as a result of revisions, reclassifications and entitlement

48 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Oil and gas information continued

Summary of proved oil and gas reserves of Shell subsidiaries and Shell share of joint ventures and associates
(at December 31, 2024)

Based on average prices for 2024

Crude oil and

natural gas liquids Natural gas Synthetic crude oil Total (million
(million barrels) (thousand million scf) (million barrels) boe) [A]
Proved developed
Europe 116 2,142 — 485
Asia 1,318 9,548 — 2,964
Oceania 43 4,786 — 868
Africa 216 1,072 — 401
North America — — — —
USA 285 226 — 324
Canada — — 741 741
South America 886 1,120 — 1,080
Total proved developed 2,864 18,894 741 6,863
Proved undeveloped
Europe 43 454 — 121
Asia 405 5,243 — 1,309
Oceania 22 1,304 — 246
Africa 78 880 — 230
North America — — — —
USA 152 272 — 199
Canada — — — —
South America 325 1,895 — 652
Total proved undeveloped 1,025 10,048 — 2,757
Total proved developed and undeveloped
Europe 159 2,596 — 606
Asia 1,723 14,791 — 4,273
Oceania 65 6,090 — 1,114
Africa 294 1,952 — 631
North America — — — —
USA 437 498 — 523
Canada — — 741 741
South America 1,211 3,015 — 1,732
Total [B] 3,889 28,942 741 9,620
Reserves attributable to non-controlling interest in Shell subsidiaries — — 370 370

[A] Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel.
[B] See footnote C, D and E in the proved developed and undeveloped reserves table on page 47.

Exploration Key exploration portfolio developments

Shell continues to explore for and mature hydrocarbons across our UK
Integrated Gas and Upstream businesses. Exploration may result in The UK government ratified 13 licences that we were awarded in the
discoveries of oil and gas that we can develop, helping maintain 33rd Offshore Licensing Round (Shell interests 50% to 100%), of which
energy security and contributing to our strategy. three are non-operated (Shell interests 50%). We relinquished two
Shell-operated licences (Shell interests 70% and 100%), and one non-
We use our integrated exploration, development and project operated licence (Shell interest 33%). We also acquired an additional
commercial and technical expertise to mature these opportunities and 15% interest in two licences, bringing our interest in each to 65%.
actively manage non-technical risks. We benchmark our projects
internally and externally to make sure our proposals are competitive. Malaysia
We review the maturation progress of our various opportunities and We signed one exploration PSC for an operated offshore Sarawak
perform post-investment reviews to extract learnings for implementation block (Shell interest 50%).
in future opportunities.

In 2024, hydrocarbons were found in Brunei, Oman and the Gulf of

America.

49 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Oil and gas information continued

Oman Location of oil and gas exploration and production

We are in the process of relinquishing to the government our operated activities
interest in two blocks (Shell interests 50% and 100%).
Location of oil and gas exploration and production
Egypt activities [A] (at December 31, 2024)
The Egyptian government ratified an agreement in which we
farmed out 40% of our participating interest in one operated Development
and/or Shell
concession (Shell retained interest 60%). We were directly Exploration Production operator [B]
awarded one concession in the West Nile Delta, which is pending
government approval (Shell interest 100%, operator). We also Europe
relinquished five operated concessions (Shell interests 21% to Albania ● ● ●
100%) and one non--operated concession (Shell interest 30%). Cyprus ●
Germany ●
Gulf of America
In Lease Sale 261, we acquired 63 operated leases (Shell interest Italy ●
100%). We sold our operated interest in 14 leases (Shell interests Netherlands ● ● ●
55.88% to 66.66%) and non-operated interest in 32 leases (Shell Norway ● ● ●
interests 33.33%). We also relinquished 33 operated leases (Shell
UK ● ● ●
interests 50% to 100%) and 11 non-operated ones (Shell interests 25%
to 40%). Asia
Brunei ● ● ●
Brazil
China ● ●
We farmed out 30% of our interest in four operated Santos Basin
blocks, retaining an interest of 70% in each. The Brazilian government Kazakhstan ●
ratified 29 Petrobras-operated Pelotas Basin blocks (Shell interests Malaysia ● ● ●
30%), which were secured in the 4th Permanent Offer Concession Bid- Oman ● ● ●
Round in 2023.
Qatar ● ●

Trinidad and Tobago Oceania

Near the Eastern Coast area, we signed one PSC for one operated Australia ● ● ●
block (Shell interest 100%). We are also in the process of relinquishing Africa
to the government one operated licence (Shell interest 100%).
Egypt ● ● ●
Other Namibia ● ●
In Mauritania, we relinquished two operated blocks (Shell interests Nigeria ● ● ●
90% and 50%).
São Tomé and Príncipe ● ●

In São Tomé and Príncipe, we signed one operated exploration PSC South Africa ● ●
(Shell interest 85%). Tanzania ● ●
Tunisia ●
In Barbados, we relinquished one non-operated licence (Shell interest
North America
40%) and we are in the process of relinquishing another non-operated
one (Shell interest 40%). Barbados ●
Canada ● ● ●
In Uruguay, the government ratified one non-operated exploration Mexico ● ●
block secured in the 2022 Open Uruguay Round (Shell interest 50%).
USA ● ● ●
South America
See "Supplementary information - oil and gas (unaudited)" on pages 313-332.
Argentina ● ● ●
Bolivia ●
Brazil ● ● ●
Colombia ● ● ●
Suriname ● ●
Trinidad and Tobago ● ● ●
Uruguay ● ●
Venezuela ● ●

[A] Includes joint ventures and associates. Where a joint venture or an associate has
properties outside its base country, those properties are not shown in this table.
[B] In several countries where "Shell operator" is indicated, Shell is the operator of some
but not all exploration and/or production ventures.

50 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Oil and gas information continued

Oil and gas production available for sale

Crude oil and natural gas liquids [A]

Thousand barrels

2024 2023 2022

Shell share of Shell share of Shell share of
Shell joint ventures Shell joint ventures Shell joint ventures
subsidiaries and associates subsidiaries and associates subsidiaries and associates
Europe
Italy 8,551 — 8,373 — 9,091 —
UK 22,910 — 23,458 — 23,905 —
Other [B] 2,730 526 2,493 524 3,722 621
Total Europe 34,191 526 34,324 524 36,718 621
Asia
Brunei 1,148 15,987 1,271 14,395 3,256 16,282
Kazakhstan 37,744 — 38,765 — 29,667 —
Malaysia 11,763 — 12,630 — 16,759 —
Oman 86,235 — 82,849 — 82,006 —
Russia — — — — 10,955 1,963
Other [B] 24,068 7,392 25,240 7,443 24,965 7,498
Total Asia 160,958 23,379 160,755 21,838 167,608 25,743
Oceania
Australia 12,775 — 10,370 — 9,391 —
Total Oceania 12,775 — 10,370 — 9,391 —
Africa
Nigeria 39,758 — 37,137 — 27,554 —
Other [B] 978 — 1,084 — 1,855 —
Total Africa 40,736 — 38,221 — 29,409 —
North America
USA 108,090 — 112,912 — 121,690 —
Canada 538 — 597 — 687 —
Total North America 108,628 — 113,509 — 122,377 —
South America
Argentina 15,610 — 12,152 627 9,023 2,587
Brazil 133,355 — 136,825 — 127,862 —
Other [B] 1,240 — 1,425 — 1,583 —
Total South America 150,205 — 150,402 627 138,468 2,587
Total 507,493 23,905 507,581 22,989 503,971 28,951

[A] Reflects 100% of production of subsidiaries except in respect of production-sharing contracts (PSCs), where the figures shown represent the entitlement of the subsidiaries concerned under
those contracts.
[B] Comprises countries where production was lower than 10,100 thousand barrels or where specific disclosures are prohibited.

Synthetic crude oil

Thousand barrels
2024 2023 2022
Shell Shell Shell
subsidiaries subsidiaries subsidiaries
North America - Canada 18,548 19,102 16,949

51 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Oil and gas information continued

Natural gas [A]

Million standard cubic feet

2024 2023 2022
Shell share of Shell share of Shell share of
Shell joint ventures Shell joint ventures Shell joint ventures
subsidiaries and associates subsidiaries and associates subsidiaries and associates
Europe
Netherlands — 37,601 — 55,351 — 133,210
Norway 176,629 — 150,318 — 174,523 —
UK 61,098 — 70,585 — 69,647 —
Other [B] 36,570 38,774 — 45,159 —
Total Europe 274,297 37,601 259,677 55,351 289,329 133,210
Asia
Brunei 15,276 144,410 13,531 136,684 15,328 138,007
China 39,592 — 48,170 — 56,008 —
Kazakhstan 75,668 — 75,521 — 57,932 —
Malaysia 219,485 — 173,638 — 200,249 —
Oman 83,520 — 55,675 — — —
Russia — — — — 2,085 37,897
Other [B] 354,653 118,375 369,125 118,252 378,313 118,435
Total Asia 788,194 262,785 735,660 254,936 709,915 294,339
Oceania
Australia 736,482 39,281 700,248 29,773 693,293 22,577
Total Oceania 736,482 39,281 700,248 29,773 693,293 22,577
Africa
Egypt 27,737 — 21,434 — 49,618 —
Nigeria 129,533 — 96,967 — 118,032 —
Other [B] 3,022 — 3,423 — 11,966 —
Total Africa 160,292 — 121,824 — 179,616 —
North America
USA 100,971 — 104,079 — 112,560 —
Canada 152,576 — 137,660 — 122,753 —
Total North America 253,547 — 241,739 — 235,313 —
South America
Bolivia 33,453 — 35,432 — 40,360 —
Brazil 66,534 — 71,162 — 73,975 —
Trinidad and Tobago 159,937 — 199,877 — 186,150 —
Other [B] 17,942 — 14,204 857 12,912 2,227
Total South America 277,866 — 320,675 857 313,397 2,227
Total 2,490,678 339,667 2,379,823 340,917 2,420,863 452,353

[A] Reflects 100% of production of subsidiaries except in respect of PSCs, where the figures shown represent the entitlement of the subsidiaries concerned under those contracts.
[B] Comprises countries where production was lower than 41,795 million scf or where specific disclosures are prohibited.

52 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Oil and gas information continued

Average realised price by geographical area

Crude oil and natural gas liquids

$/barrel
2024 2023 2022
Shell share of Shell share of Shell share of
Shell joint ventures Shell joint ventures Shell joint ventures
subsidiaries and associates subsidiaries and associates subsidiaries and associates
Europe 70.82 76.61 77.19 79.10 94.52 91.26
Asia 76.13 79.77 76.57 82.24 88.69 100.81
Oceania 63.98 — 58.31 — 78.37 —
Africa 79.63 — 84.33 — 104.84 —
North America - USA 74.07 — 75.07 — 92.89 —
North America - Canada 38.52 — 46.45 — 62.10 —
South America 71.85 — 71.93 67.98 85.84 71.21
Total 74.04 79.70 75.12 81.75 90.06 97.80

Synthetic crude oil

$/barrel
2024 2023 2022
Shell Shell Shell
subsidiaries subsidiaries subsidiaries
North America - Canada 68.35 69.26 86.93

Natural gas

$/thousand scf
2024 2023 2022
Shell share of Shell share of Shell share of
Shell joint ventures Shell joint ventures Shell joint ventures
subsidiaries and associates subsidiaries and associates subsidiaries and associates
Europe 12.76 9.63 17.47 18.89 27.24 39.11 [A]
Asia 2.62 7.23 2.84 7.60 3.74 10.88
Oceania 10.47 6.40 11.05 6.23 13.21 6.75
Africa 3.02 — 3.25 — 7.08 —
North America - USA 3.50 — 3.74 — 8.46 —
North America - Canada 1.19 — 2.25 — 4.08 —
South America 4.13 — 5.10 3.69 8.71 3.90
Total 6.47 7.44 7.40 9.78 10.88 17.59 [A]

[A] As revised, following a reassessment.

53 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Oil and gas information continued

Average production cost by geographical area

Crude oil, natural gas liquids and natural gas [A]

$/boe

2024 2023 2022

Shell share of Shell share of Shell share of
Shell joint ventures Shell joint ventures Shell joint ventures
subsidiaries and associates subsidiaries and associates subsidiaries and associates
Europe 17.05 28.54 20.93 25.33 24.83 12.25
Asia 6.33 9.10 6.35 9.64 6.75 8.06
Oceania 7.85 19.49 9.01 21.23 10.32 24.97
Africa 11.95 — 11.12 — 13.66 —
North America - USA 10.11 — 9.62 — 11.03 —
North America - Canada 9.30 — 9.70 — 11.15 —
South America 7.51 — 7.36 9.03 6.91 7.74
Total 8.74 11.60 9.08 12.29 10.20 9.59

[A] Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel.

Synthetic crude oil

$/barrel
2024 2023 2022
Shell Shell Shell
subsidiaries subsidiaries subsidiaries
North America - Canada 17.00 19.47 23.05

54 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value

Marketing
Marketing comprises the Mobility, Lubricants,
and Sectors and Decarbonisation businesses.
Mobility operates Shell's retail network,
including electric vehicle charging services
and the wholesale commercial fuels business,
which provides fuels for transport, industry
and heating. The Lubricants business produces,
markets and sells lubricants for road transport,
and machinery used in manufacturing, mining,
power generation, agriculture and
construction. The Sectors and Decarbonisation
business sells fuels, speciality products and
services including low-carbon energy solutions
to commercial customers including the
aviation, marine, and agricultural sectors.

1.9 3.9
Segment earnings ($ billion) Adjusted Earnings ($ billion)
(2023: 3.1) (2023: 3.3)

7.4 2,843
Cash flow from operating Marketing sales volumes
activities ($ billion) (thousand b/d)
(2023: 5.6) (2023: 3,045)

55 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Marketing continued

Our Marketing business grew as a result of higher margins in Key metrics [A]
fuels and lubricants as we focused on high-value customers and
profitable market segments. We have been the leading finished $ million, except where indicated
lubricants supplier in the world for 18 years, according to Kline 2024 2023 2022
& Company data for 2023. Mobility continued to focus on key
Segment earnings*[B] 1,894 3,057 2,292
markets and we completed the sale of Shell Pakistan. We have also
installed more than 70,000 electric vehicle public charge points Identified items (1,991) (254) (612)
globally achieving yet another aim one year ahead of schedule. Adjusted Earnings* [B] 3,885 3,312 2,905
As an example of our focus on discipline, we have paused on-site Adjusted EBITDA* [B] 7,476 6,337 5,613
construction work at our planned biofuels facility in Rotterdam
Cash flow from operating activities 7,363 5,561 3,810
to address project delivery and ensure future competitiveness. See
"Outlook" on pages 16-17 for our Capital Markets 2025 investor Cash capital expenditure* 2,445 5,790 4,978
update. Marketing sales volumes (thousand b/d) 2,843 3,045 3,043

[A] See Note 7 to the "Consolidated Financial Statements" which includes an explanation of
Business conditions
the reporting segment changes applicable from 2024.
For the business conditions relevant to Marketing, see "Market [B] Segment earnings, Adjusted Earnings, and Adjusted EBITDA are presented on a current
overview" on pages 28-30. cost of supplies basis.

Segment earnings in 2023 included impairment charges of

Financial delivery $466 million and charges of $113 million related to redundancy and
restructuring, partly offset by gains of $298 million related to indirect
Earnings 2024-2023 tax credits. These charges and gains are part of identified items and
Segment earnings decreased by $1,163 million compared with 2023. compare with 2022, which included net impairment charges and
This reflected higher Marketing margins (increase of $483 million) reversals of $321 million; net losses of $122 million related to the sale
including higher unit margins in Lubricants and Mobility. This was partly of assets; and provisions for onerous contracts of $62 million.
offset by lower Sectors and Decarbonisation margins. Segment earnings
also reflected lower operating expenses (decrease of $449 million). Adjusted Earnings increased by $407 million compared with 2022,
These were partly offset by unfavourable tax movements ($157 million) as a result of the following:
and higher depreciation charges (increase of $142 million). The 2024 ￮ Mobility (including wholesale commercial fuels) Adjusted Earnings
segment earnings also included net impairment charges and reversals of were $73 million lower, mainly as a result of higher operating
$1,423 million, mainly related to an asset in the Netherlands, net losses expenses and higher depreciation. This was partly offset by better
of $386 million related to the sale of assets and charges of $215 million margins;
related to redundancies and restructuring. These charges are part of ￮ Lubricants Adjusted Earnings were $339 million higher, mainly
identified items and compare with the full year 2023, which included because of higher margins due to lower feedstock costs; and
net impairment charges and reversals of $466 million, and charges ￮ Sectors and Decarbonisation Adjusted Earnings were $141 million
of $113 million related to redundancies and restructuring, partly higher, mainly because of increased volumes and higher earnings
offset by gains of $298 million related to indirect tax credits. in joint ventures.

Adjusted Earnings increased by $573 million, compared with 2023, Cash flow from operating activities
as a result of the following: Cash flow from operating activities in 2024 was primarily driven
￮ Mobility (including wholesale commercial fuels) Adjusted Earnings by Adjusted EBITDA, working capital inflows of $998 million,
were $392 million higher, mainly as a result of higher unit margins and dividends (net of profits) from joint ventures and associates
and lower operating expenses. This was partly offset by higher of $262 million. These inflows were partly offset by tax payments
depreciation and higher taxes; of $562 million, non-cash cost of supplies adjustment of $254 million,
￮ Lubricants Adjusted Earnings were $329 million higher, mainly and outflows from the timing impact of $221 million in payments
because of higher margins; and related to emission certificates and biofuel programmes.
￮ Sectors and Decarbonisation Adjusted Earnings were $148 million
lower, mainly because of lower earnings in joint ventures partly Cash capital expenditure
offset by lower operating expenses. Cash capital expenditure* of $2.4 billion in 2024 reflected $0.8 billion
in low-carbon energy solutions, compared with $3.3 billion in 2023.
Prior year earnings summary
Segment earnings in 2023 were 33% higher than in 2022, reflecting Cash capital expenditure in low-carbon energy solutions was higher
higher margins (increase of $1,482 million), including higher unit in 2023, mainly due to the acquisition of Nature Energy and the
margins in Mobility, higher margins in Lubricants because of lower expansion of our Mobility electric vehicle charging business.
feedstock costs, and higher volumes in Sectors and Decarbonisation.
Our cash capital expenditure* is expected to be in the range of $2-3
These increases were partly offset by higher operating expenses billion in 2025.
(increase of $730 million) and higher depreciation charges
(increase of $267 million), mainly due to asset acquisitions.

* Non-GAAP measure (see page 445).

56 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Marketing continued

Operational performance As we work to provide more low-carbon alternatives to our customers,

we also continue to develop traditional fuels for drivers of internal
combustion engine vehicles. Aided by our partnership with Scuderia
Marketing sales
Ferrari, we have concentrated on developing fuels with special
Marketing sales volumes, which comprise hydrocarbon sales,
formulations designed to clean engines and improve performance.
decreased compared with 2023. This was mainly as a result of reduced
An example of this is Shell V-Power. We sold fuels under the Shell
sales volumes in Mobility because of our focus on value over volume.
V-Power brand in 72 markets in 2024.
Number of electric vehicle charge points
In 2024, the number of electric vehicle charge points owned or Shell-
branded was almost 73,000 compared with 54,000 in 2023.

Strategic progress
Portfolio and business developments
Significant portfolio and business developments:
￮ In July 2024, we announced that we had paused on-site construction
work at the biofuels facility at the Shell Energy and Chemicals Park
Rotterdam in the Netherlands to assess the most commercial way
forward for the project.
Partnering with Ferrari in motorsport
Business and property
We are the lead technical partner to the Scuderia Ferrari F1™
Mobility
team, with the partnership being one of the longest and most
Shell Mobility is where we connect with individual customers on a
successful in motorsport. The partnership is the ultimate test bed
personal level. Shell Mobility is one of the world's largest mobility
for our products, challenging them to perform in some of the most
retailers by number of sites, with more than 44,000 Shell-branded
extreme conditions and ensuring our customers are getting the
mobility sites, including service stations, in more than 80 markets at the
very best. In October 2024, a multi-year renewal was announced.
end of 2024. We operate different models across these markets, from
Taking effect on January 1, 2026, the partnership will encompass
full ownership of sites to brand licensing agreements. In line with our
Scuderia Ferrari HP, Ferrari Hypercar and the Ferrari Challenge
strategy to focus on markets that provide high returns on investment,
Series. We are helping to shape the future of fuels by supporting
we are continuing with our plan to divest around 500 low-return Shell-
Scuderia Ferrari with the development of an advanced sustainable
owned sites (including joint ventures) each year until 2025. The sale
race fuel for the 2026 F1™ World Championship season. The fuel
of Shell Pakistan in 2024 has helped us achieve our aim.
will meet FIA requirements of achieving greenhouse gas emissions
savings, relative to fossil-fuel-derived petrol, of at least 65%.
Every day, around 33 million retail customers visit Shell-branded
mobility sites for a range of quality fuels, electric vehicle charging, and Photo: Imagery of Scuderia Ferrari HP driver Charles Leclerc driving at the 2024
Singapore Grand Prix, Round 18.
convenience and non-fuel products and services. Through Shell Fleet
Solutions, our business customers can obtain fuel cards, road services
and carbon-offset offers, among other products and services.
Shell Commercial Road Transport (CRT) is also working to help
We are expanding our convenience and non-fuel retail offer to cater to drive the decarbonisation of the transport sector by providing fuels,
our customers' needs. At many of our sites, we offer convenience items, lubricants and digital services to customers with heavy-duty vehicles
including beverages and fresh food, and services, such as lubricant in their fleets. We have a public electric vehicle charging facility for
changes and car washes. At the end of 2024, Shell operated 13,000 trucks in Hamburg, Germany, which has four fast-charging stations.
convenience stores worldwide. We have upgraded more than 2,500
stores with our Shell Café premium fresh coffee and food offer since We also offer drivers using heavy-duty LNG-fuelled trucks access
launching in 2021. to Shell-operated and partner networks in Europe. We have LNG
refuelling sites in Austria and Hungary.
Low-carbon products and services
Shell Mobility offers customers lower-emission products and services,
including biofuels and electric vehicle charging. We are focusing on
growing our presence in China, Europe and the USA. At the end of
2024, we had almost 73,000 public charge points globally at Shell
forecourts, on-street locations, mobility hubs and other sites, such as
supermarkets. This was an increase from around 54,000 at the end of
2023. As part of our value over volume focus, we no longer set a
volumetric target for the number of charge points by 2030.

Shell's global electric vehicle charging business is not yet profitable.

However, we remain committed to investing in this sector as we
anticipate future profitability. The timeline and extent of this profitability
will be influenced by factors, such as network accessibility, market
competition, customer demand, advancements in cost-related
technologies and supportive government policies. Photo: A heavy-duty LNG-fuelled truck on Shell and IVECO's "On the road to net-zero
emissions" bioLNG tour of Europe in 2023.

57 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Marketing continued

In April 2024, we opened our bioLNG liquefaction plant at the Shell Marine
Energy and Chemicals Park Rheinland. This can produce 100,000 Shell Marine serves customers whose vessels range from ocean-going
tonnes of bioLNG per annum, which will help around 5,000 LNG tankers to fishing boats. We supply seven types of fuel, more than
trucks reduce their carbon emissions. Since 2022, our customers 300 grades of lubricants and low-carbon solutions. Our global supply
in the Netherlands have been able to opt for a bioLNG blend. network covers key bunkering locations. Shell Marine also supplies
chemical products, and marine-related technical and digital services.
Trading and Supply Our lubricants are used in around 10,000 vessels and are available
Through our main trading and supply offices in London, Houston, in more than 700 ports across more than 50 countries.
Singapore and Rotterdam, we trade low-carbon fuels, refined products,
chemical feedstocks and environmental products. We trade in physical Biofuels
and financial contracts, and have wholesale commercial fuel activities. Shell and the non-operated joint venture Raízen (Shell interest 44%)
Shell Wholesale Commercial Fuels provides fuels for transport, industry are, together, one of the world's largest blenders and distributors of
and heating — from reliable main-grade fuels to premium products. biofuels. Biofuels, along with natural gas, will play a key role in
With about 180 Shell and joint-venture (including pipeline) terminals reducing emissions from heavy-duty transport.
and operating in around 25 countries, our infrastructure is well
positioned to make deliveries around the world. In 2024, around 10.37 billion litres of biofuels (2023: 9.7 billion litres)
were blended into Shell's sale of fuels worldwide, which includes the
Lubricants Shell share of sales made by Raízen. Raízen produced, on a 100%
Shell Lubricants has been the number one global finished lubricants basis, around 3.16 billion litres of ethanol in 2024 (2023: 3.12 billion
supplier in terms of market share for 18 consecutive years, according litres). The cellulosic ethanol plant at Raízen's Costa Pinto mill in Brazil
to Kline & Company data for 2023. Shell lubricants are available produced 61 million litres of second-generation ethanol in 2024 (2023:
across more than 175 markets for passenger cars, motorcycles, 30 million litres). Expansion began in 2024, with the start-up at a new
trucks, coaches, and machinery used in manufacturing, mining, plant and commissioning of two further plants at the end of 2024. The
power generation, agriculture and construction. majority of the ethanol and cellulosic ethanol produced by Raízen is
sold unblended to international customers in markets such as the USA,
In addition to making premium lubricants for conventional vehicles, Europe and Japan. Raízen also produced around 5.1 million tonnes of
we also make Shell E-fluids for electric vehicles from base oils made sugar from sugar cane (2023: 5.8 million tonnes).
from natural gas at Pearl gas-to-liquids (GTL) plant in Qatar.
Renewable natural gas (RNG), also known as biogas or biomethane, is
Our global lubricants supply chain has a network of 32 lubricants gas derived from processing organic waste in a controlled environment
blending plants, four base oil plants (one of which we operate), until it is fully interchangeable with conventional natural gas.
10 grease plants and five GTL base oil storage hubs.
Nature Energy, which Shell acquired in 2023, is one of Europe's largest
Sectors and Decarbonisation producers of RNG. In 2024, Nature Energy opened its first biogas
The Sectors and Decarbonisation business sells fuels, speciality plant in France. The Sécalia plant is operated in partnership with
products and services including low-carbon energy solutions to a the Dijon Céréales consortium of 150 farmers. It is France's largest
broad range of commercial customers including the aviation, marine, renewable gas plant with annual production of 230 GWh of biogas.
and agricultural sectors. Together with its partners, Nature Energy also owns and operates
13 biogas plants in Denmark and one in the Netherlands.
Shell Bitumen supplies customers across several markets and provides
enough bitumen to resurface 500 kilometres of road lanes every day. In March 2024, we started operations at Shell Downstream Bovarius,
which is one of two facilities at the Bettencourt Dairies in Wendell,
Shell Sulphur Solutions manages the value chain of sulphur from Idaho, USA, where we are converting dairy manure to RNG. Bovarius
refining to marketing. It provides sulphur for use in applications, is expected to produce around 400,000 MMBtu a year of RNG. The
such as fertiliser, mining and chemicals. It also licenses Shell Thiogro second facility, Shell Downstream Friesian, is expected to produce
technologies to create sulphur-enhanced fertilisers. around 350,000 MMBtu a year of RNG and operations are expected
to start in 2025.
Aviation
Shell Aviation provides aviation fuel, lubricants and low-carbon Marketing data tables
solutions globally. Shell's Avelia platform is one of the world's first
blockchain-powered sustainable aviation fuel (SAF) book-and-claim
Branded mobility locations [A]
solutions for business travel. It is designed to help trigger demand for
SAF — increased demand would help encourage investment in SAF 2024 2023 2022
production. Wider production and supply, driven by increased
Europe 8,227 8,346 8,260
demand, could help lower the price point for these fuels. Since launch,
Avelia has injected more than 18 million gallons of SAF into the fuel Asia [B] 7,742 10,824 10,470
network at nine airports around the world and supported more than Oceania [B] 1,047 1,087 1,083
36 airlines and corporate customers in accessing the environmental Africa 2,994 2,917 2,815
attributes of SAF.
Americas [C] 24,099 23,830 23,597
Total [D] 44,109 47,004 46,225

[A] Includes different models, from full-ownership retail sites, and sites operated by joint
ventures, through to trademark licensing agreements, and excludes sites closed for more
than six months.
[B] Asia includes Turkey; Oceania includes French Polynesia, Guam, Palau and New Caledonia.
Decrease in sites is primarily due to exit from Japan market.
[C] 2024 includes around 8,138 sites operated by the Raízen joint venture.
[D] 2024 includes 8,030 sites operated through trademark licensing agreements.

58 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Marketing continued

Marketing sales volumes [A][B][C][D]

Thousand b/d
2024 2023 2022
Europe
Mobility 611 626 614 [E]
Lubricants 16 16 16
Sectors and Decarbonisation 192 186 176 [E]
Total 819 828 806
Asia
Mobility 594 607 635 [E]
Lubricants 40 39 38
Sectors and Decarbonisation 104 138 113 [E]
Total 738 784 786
Africa
Mobility 63 74 86 [E]
Lubricants 2 3 3
Sectors and Decarbonisation 6 9 8 [E]
Total 71 86 97
Americas
Mobility 790 919 938 [E]
Lubricants 23 24 25
Sectors and Decarbonisation 402 404 390 [E]
Total 1,215 1,347 1,354
Total product sales
Mobility 2,057 2,226 2,274 [E]
Lubricants 82 82 83
Sectors and Decarbonisation 704 737 686 [E]
Total 2,843 3,045 3,043
Gasolines 1,282 1,321 1,307
Kerosenes 391 386 345
Gas/Diesel oils 960 1,012 1,057
Fuel oil 22 23 24
Other products [F] 188 303 310
Total 2,843 3,045 3,043

[A] Excludes deliveries to other companies under reciprocal sale and purchase arrangements, that are in the nature of exchange contracts.
[B] Includes the Shell share of Raízen's sales volumes and other joint ventures' sales volumes.
[C] Excludes sales volumes from markets where Shell operates under trademark licensing agreements.
[D] From the first quarter 2024, wholesale commercial fuels forms part of Mobility with inclusion in the Marketing segment (previously Chemicals & Products segment). Prior period comparatives
have been revised to conform with current year presentation with an offsetting impact between Marketing and Chemicals and Products segments.
[E] Previously reported within the Sectors and Decarbonisation class of business, with effect from July 1, 2023, the Commercial Road Transport business (CRT) is part of Mobility and Customer
Operations is part of Lubricants. Comparative information has been revised.
[F] Includes LPG sales volumes of 26 thousand b/d (2023: 29 thousand b/d; 2022: 33 thousand b/d).

59 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value

Chemicals
and Products
Chemicals and Products includes chemical
manufacturing plants with their own marketing
network, and refineries which turn crude oil
and other feedstocks into a range of oil
products which are moved and marketed
around the world for domestic, industrial and
transport use. The segment also includes the
pipeline business, trading and optimisation of
crude oil, oil products and petrochemicals, and
the extraction of bitumen from mined oil sands
and its conversion into synthetic crude oil.

1.8 2.9
Segment earnings ($ billion) Adjusted Earnings ($ billion)
(2023: 1.5) (2023: 3.6)

7.3 1,344
Cash flow from operating Refinery processing intake
activities ($ billion) (thousand b/d)
(2023: 7.5) (2023: 1,349)

1,052 11,875
Product sales volumes Chemicals sales volumes
(thousand b/d) (thousand tonnes)
(2023: 1,078) (2023: 11,245)

60 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Chemicals and Products continued

We announced the decision to stop processing crude oil into Key metrics [A]
petrol, jet fuel and diesel at our Wesseling site in Germany, and
to produce premium oils instead. We also opened our first bioLNG $ million, except where indicated
liquefaction plant in Germany. In Chemicals, we saw improved 2024 2023 2022
utilisation thanks to the ramp-up of operations at Shell Polymers
Segment earnings*[B] 1,757 1,482 4,380
Monaca, USA, and we took a final investment decision to expand
our CSPC petrochemicals joint venture with CNOOC in Daya Identified items (1,177) (2,135) (213)
Bay, China. See "Outlook" on pages 16-17 for our Capital Markets Adjusted Earnings*[B] 2,934 3,617 4,592
2025 investor update. Adjusted EBITDA*[B] 6,783 7,489 8,305
Cash flow from operating activities 7,253 7,513 11,472
Business conditions
For the business conditions relevant to Chemicals and Products, Cash capital expenditure* 3,290 3,014 3,691
see "Market overview" on pages 28-30. Chemicals manufacturing plant utilisation (%) 76% 68% 79%

Financial delivery Refinery utilisation (%) 85% 85% 86%

Refinery processing intake (thousand b/d) 1,344 1,349 1,402
Earnings 2024-2023 Product sales volumes (thousand b/d) 1,052 1,078 1,160
Segment earnings in 2024 increased by $275 million compared with Chemicals sales volumes (thousand tonnes) 11,875 11,245 12,281
2023. This reflected lower operating expenses (a decrease of $812
million) and higher Chemicals margins (increase of $602 million). These [A] See Note 7 to the "Consolidated Financial Statements" which includes an explanation of
the reporting segment changes applicable from 2024.
were partially offset by lower Products margins (a decrease of $1,832 [B] Segment earnings, Adjusted Earnings, and Adjusted EBITDA are presented on a current
million), mainly driven by lower refining margins and unfavourable tax cost of supplies basis.
movements ($248 million). Segment earnings in 2024 also included:
￮ net impairment charges and reversals of $1,176 million mainly These charges and gains are part of identified items and compare
relating to assets in Singapore; with 2022, which included:
￮ charges of $142 million related to redundancy and restructuring; and ￮ net impairment charges and reversals of $226 million;
￮ unfavourable movements of $86 million relating to an accounting ￮ legal provisions of $149 million;
mismatch due to fair value accounting of commodity derivatives, ￮ unfavourable movements of $142 million related to the fair value
partly offset by favourable deferred tax movements of $114 million. accounting of commodity derivatives;
￮ tax charges relating to the EU solidarity contribution of $74 million;
These charges and movements are part of identified items, and partly offset by gains of $210 million, related to the sale of assets; and
compare with the full year 2023 which included net impairment ￮ gains of $104 million, related to the remeasurement of redundancy
charges and reversals of $2,195 million mainly relating to the and restructuring costs.
Chemicals assets in Singapore, and charges of $82 million related to
redundancy and restructuring partly offset by favourable movements In 2023, Adjusted Earnings from Chemicals accounted for (43)%,
of $214 million relating to an accounting mismatch due to fair value Refining for 67% and Trading and Optimisation including pipelines for
accounting of commodity derivatives. 76%. The decrease in Adjusted Earnings of $975 million was driven by
the following:
In 2024, Adjusted Earnings from Chemicals accounted for (15)%, ￮ Products Adjusted Earnings were $758 million lower than in 2022,
Refining for 34% and Trading and Optimisation including pipelines for mainly driven by lower refining and oil sands margins and partly
81%. The decrease in Adjusted Earnings of $683 million was driven by offset by higher margins from Trading & Optimisation.
the following: ￮ Chemicals negative Adjusted Earnings were $217 million more than
￮ Products Adjusted Earnings were $1,818 million lower than in 2023, in 2022, mainly because of higher depreciation and operating
mainly driven by lower refining and oil sands margins and expenses, partly offset by higher margins and Income from
unfavourable tax movements, higher depreciation partly offset by associates.
lower operating expenses.
￮ Chemicals negative Adjusted Earnings were $1,135 million lower Cash flow from operating activities
than in 2023, mainly because of higher margins and lower operating Cash flow from operating activities in 2024 was primarily driven by
expenses, and lower depreciation. Adjusted EBITDA, working capital inflows of $524 million, dividends
(net of profits) from joint ventures and associates of $304 million and
Prior year earnings summary net cash inflows relating to commodity derivatives of $219 million.
Segment earnings in 2023 were 66% lower than in 2022, reflecting These inflows were partly offset by cash outflows relating to legal
lower Products margins (a decrease of $1,545 million), mainly driven provisions of $215 million, tax payments of $146 million, cash
by lower refining margins and partly offset by higher margins from outflows relating to the timing impact of payments relating to
trading and optimisation. The segment earnings also reflected higher emission certificates and biofuel programmes of $114 million,
depreciation charges (an increase of $543 million) due to the start-up and a non-cash cost of supplies adjustment of $109 million.
of operations at Shell Polymers Monaca in the USA. These losses were
partly offset by higher Chemicals margins (an increase of $612 million). Shell's policy is to settle the inter-segment use of tax attributes between
Segment earnings in 2023 included the following: business segments. This settlement is usually made in cash but in certain
￮ net impairment charges and reversals of $2,195 million, mainly instances there is no cash settlement. In 2024, the Integrated Gas
related to the Chemicals assets in Singapore; and segment's deferred tax assets ($974 million) were mainly used by the
￮ charges of $82 million related to redundancy and restructuring, Upstream ($759 million) and Chemicals and Products ($183 million)
partly offset by favourable movements of $214 million related segments, for which no cash settlement was made.
to the fair value accounting of commodity derivatives.
Cash capital expenditure
* Non-GAAP measure (see page 445). Cash capital expenditure* increased by $0.3 billion in 2024 to $3.3
billion mainly because of growth projects in China. Our cash capital
expenditure* is expected to be around $3 billion in 2025.

61 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Chemicals and Products continued

Operational performance Our Pennsylvania chemical project, Shell Polymers Monaca, which
commenced operations in November 2022, was not fully functional
during 2023 due to operational and start-up challenges. The facility
Chemicals manufacturing plant utilisation
has since ramped up operations since the first quarter of 2024.
Utilisation is defined as the actual use of the plants as a percentage of
the rated capacity. Chemicals manufacturing plant utilisation was
We are expanding our product portfolio to include chemicals
8 percentage points higher than in 2023, mainly due to economic
made from circular feedstocks, and more intermediates
optimisation in 2023. The increase was also driven by the ramp-up of
and performance chemicals, such as polyethylene and polycarbonate.
Shell Polymers Monaca and lower unplanned maintenance in 2024.
We operate chemical plants worldwide and have a balance of
Refinery utilisation
locations, feedstocks and products. In 2024, we began production at
Utilisation is defined as the actual use of the plants as a percentage
our new pyrolysis oil upgrader at the Shell Chemicals Park Moerdijk in
of the rated capacity. Refinery utilisation of 85% was in line with 2023.
the Netherlands. The unit improves the quality of pyrolysis oil, a liquid
made from hard-to-recycle plastic waste, and turns it into chemical
Chemicals and Products sales
feedstock. The plant has the capacity to process up to 50,000 tonnes
Chemicals sales volumes were 6% higher than in 2023, mainly due to
of pyrolysis oil per year.
higher polyethylene volumes partly offset by lower intermediate volumes.
Products – Refining and Trading
Products sales volumes were 2% lower than in 2023 due to lower Trading
Refining
sales volumes in Europe partly offset by increases in the USA and Asia. We have interests in eight refineries, with a total capacity to process
1.6 million barrels of crude oil a day. The distribution of our refining
capacity is 60% in Europe, 26% in the Americas and 14% in Asia.
Strategic progress
In 2024, we took an FID to convert the hydrocracker of the Wesseling
Portfolio and business developments site at the Energy and Chemicals Park Rheinland in Germany into a
Significant portfolio and business developments: production unit for Group III base oils. These mineral base oils have
￮ In January 2024, we took an FID to convert the hydrocracker of a very high viscosity index, which meets transport industry standards,
the Wesseling site at the Energy and Chemicals Park Rheinland and are produced with hydrocracking technology. The market for high-
in Germany into a production unit for Group III base oils. quality engine and transmission oils, as well as electric vehicle fluids
￮ In May 2024, we agreed to sell our Energy and Chemicals Park in and cooling fluids, some of which are made from these oils, is expected
Singapore to CAPGC Pte. Ltd., a joint venture company between to grow. Crude oil processing will end at the Wesseling site in 2025
Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd. but continue at the Godorf site.
The transaction will transfer all of Shell's interests in Shell Energy and
Chemicals Park Singapore to CAPGC [A].
￮ In June 2024, we took an FID for Polaris, a carbon capture project
at the Shell Energy and Chemicals Park Scotford in Alberta, Canada.
We also took an FID to proceed with the Atlas Carbon Storage Hub
which will store CO2 captured by the Polaris project.
￮ In January 2025, CNOOC and Shell Petrochemicals Company
Limited (CSPC), a 50-50 joint venture between Shell Nanhai B.V and
CNOOC Petrochemicals Investment Ltd, took an FID to expand its
petrochemical complex in Daya Bay, Huizhou, south China.

Business and property

Energy and chemicals plants
We are repurposing our refineries into energy and chemicals parks to
focus on meeting customers' low-carbon and sustainability needs. This
is underway at Norco in the USA, Scotford in Canada, Rotterdam in
the Netherlands and Rheinland in Germany. We continue to explore Photo: Barges at the Shell Energy and Chemicals Park Rheinland in Germany.
options for the former Convent Refinery in Louisiana, USA, which has
been shut down, and we have agreed to sell our Energy and Chemicals Trading and Supply
Park in Singapore. As we transform our refineries, we are building new Through our main trading offices in London, Houston, Singapore
facilities or converting existing units to support low-carbon products, and Rotterdam, we trade crude oil, low-carbon fuels, refined
while dismantling units that do not deliver sustainable long-term value. products, chemical feedstocks and environmental products.
We trade in physical and financial contracts, lease storage and
Chemicals transportation capacities, and manage global shipping activities.
Products made from chemicals are used in everyday life, including
in medical equipment, construction, transport, electronics, agriculture Shipping and Maritime enables the safe delivery of our contracts and
and sports. Our plants produce a range of base chemicals, including this includes supplying feedstock for our refineries and chemical plants,
ethylene, propylene and aromatics, and intermediate chemicals, such and finished products such as gasoline, diesel and aviation fuel to our
as styrene monomer, propylene oxide, solvents, linear alpha olefins, Marketing segment and customers.
detergent alcohols, ethylene oxide, ethylene glycol and polyethylene.
We have the capacity to produce around 8.1 million tonnes of ethylene
a year (including the Shell share of capacity entitlement (offtake rights)
of joint ventures and associates, which may be different from nominal
equity interest).

[A] Transaction subject to completion.

62 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Chemicals and Products continued

Pipelines Products sales volumes [A][B][C]

We own and operate three tank farms across the USA through Shell
Pipeline Company LP (Shell interest 100%). It transports around 1.5 Thousand b/d
billion barrels of crude oil, refined products and chemicals a year 2024 2023 2022
through around 5,500 kilometres of pipelines in the Gulf of America
Europe 507 560 574
and nine US states. Our non-operated ownership interests provide
another 13,000 kilometres of pipeline. Asia 248 240 274
Africa — — —
Our pipelines carry more than 40 types of crude oil and more than Americas 297 278 312
20 grades of fuel and chemicals, including petrol, diesel, aviation
Total 1,052 1,078 1,160
fuel and chemicals including ethylene.
Gasolines 141 154 264
We own, operate, develop and acquire pipelines and other midstream Kerosenes 94 104 93
and logistics assets. Our assets include interests in entities that own
Gas/Diesel oils 321 346 291
crude oil and refined products pipelines and terminals that serve as
key infrastructure to: Fuel oil 200 221 257
￮ transport onshore and offshore crude oil production to US Gulf Other products [D] 296 252 256
Coast and Midwest refining markets; and Total 1,052 1,078 1,160
￮ deliver refined products from those markets to major demand
centres. [A] Excludes deliveries to other companies under reciprocal sale and purchase arrangements,
which are in the nature of exchanges. Sales of condensate are included.
[B] Certain contracts are held for trading purposes and reported net rather than gross.
Our assets also include interests in entities that own natural gas and The effect in 2024 was a reduction in refining and trading sales of around 1,286 thousand
b/d (2023: 1,202 thousand b/d; 2022: 1,197 thousand b/d).
refinery gas pipelines that transport offshore natural gas to market [C] From the first quarter 2024, Wholesale Commercial Fuels forms part of Mobility with
hubs and deliver refinery gas from refineries and plants to chemical inclusion in the Marketing segment (previously Chemicals and Products segment). Prior
sites along the US Gulf Coast. period comparatives have been revised to conform with current year presentation with
an offsetting impact between Marketing and Chemicals and Products segments.
[D] Includes LPG sales volumes of 54 thousand b/d (2023: 55 thousand b/d; 2022:
Oil Sands 48 thousand b/d).
Synthetic crude oil is produced by mining bitumen-saturated sands,
extracting the bitumen and transporting it to a processing facility where Cost of crude oil processed or consumed [A]
hydrogen is added to make a wide range of feedstocks for refineries.
The Athabasca Oil Sands Project (AOSP) in Alberta, Canada, includes $/barrel
the Albian Sands mining and extraction operations, the Scotford 2024 2023 2022
Upgrader and the Quest Carbon Capture and Storage (CCS) facility.
Total 77.97 71.13 84.39
Quest CCS captures about 1 million tonnes per year of CO2 from the
hydrogen manufacturing units within the upgrader. Since opening in [A] Includes Upstream and Integrated Gas margins on crude oil supplied by Shell subsidiaries,
joint ventures and associates.
2015, Quest CCS has safely stored more than 9 million tonnes of CO2.

We have a 50% interest in 1745844 Alberta Ltd. (formerly known Crude distillation capacity [A]
as Marathon Oil Canada Corporation), which holds a 20% interest
Thousand b/stream day [B]
in the Athabasca Oil Sands Project.
2024 2023 2022
Pursuant to our 2017 agreement with Canadian Natural Resources Europe 975 975 990
Limited, our remaining mining interest and associated synthetic Asia 237 237 237
crude oil reserves will be swapped for an additional 10% interest
Africa — — 23
in the Scotford Upgrader and Quest CCS project. The transaction
is expected to close by the end of the first half of 2025, subject Americas 435 435 449
to regulatory approvals. Total 1,646 1,646 1,698

[A] Average operating capacity for the year, excluding mothballed capacity.
Chemicals and Products data tables [B] Stream day capacity is the maximum capacity with no allowance for downtime.
The tables below reflect Shell subsidiaries and instances where Shell
owns the crude oil or feedstocks processed by a refinery. Other joint Crude oil processed [A]
ventures and associates are only included where explicitly stated.
Thousand b/d
2024 2023 2022
Europe 742 732 715
Asia 165 168 184
Africa — — 16
Americas 359 322 353
Total 1,266 1,222 1,268

[A] Includes natural gas liquids, share of joint ventures and associates and processing
for others.

63 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Chemicals and Products continued

Refinery processing intake [A] Refinery processing outturn [A]

Thousand b/d Thousand b/d

2024 2023 2022 2024 2023 2022
Europe 742 764 763 Gasolines 486 489 477
Asia 166 171 184 Kerosenes 162 168 166
Africa — — 16 Gas/Diesel oils 506 516 512
Americas 437 414 439 Fuel oil 80 88 90
Total 1,344 1,349 1,402 Other 186 149 193

[A] Includes crude oil, natural gas liquids and feedstocks processed in crude distillation units Total 1,419 1,410 1,438
and in secondary conversion units.
[A] Excludes own use and products acquired for blending purposes.

Manufacturing plants at December 31, 2024

Refineries

Thousand barrels/stream day, 100% capacity [B]

Thermal
Crude cracking/
Shell interest distillation visbreaking/ Catalytic Hydro-
Location Asset class (%) [A] capacity coking cracking cracking
Europe
Germany Miro [C] 32 313 40 96 —
Rheinland 100 339 32 — 87
Schwedt [C] 38 234 46 57 —
Netherlands Pernis 100 447 — 53 104
Asia
Singapore Pulau Bukom[D] 100 237 — — 61
Americas
Argentina Buenos Aires [E] 44 112 14 22 —
Canada
Alberta Scotford 100 100 — — 83
Ontario Sarnia 100 85 5 21 10
USA
Louisiana Norco 100 250 29 119 44

[A] Shell interest is rounded to the nearest whole percentage point; Shell share of production capacity may differ.
[B] Stream day capacity is the maximum capacity with no allowance for downtime.
[C] Not operated by Shell.
[D] Refinery has been classified as held for sale.
[E] Owned through Raízen joint venture.

Integrated refinery and chemical complex

Refinery complex with cogeneration capacity
Refinery complex with chemical unit(s)

64 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Chemicals and Products continued

Chemicals data tables

The tables below reflect Shell subsidiaries and instances where Shell owns the crude oil or feedstocks processed by a refinery. Other joint ventures
and associates are only included where explicitly stated.

Ethylene capacity [A]

Thousand tonnes/year
2024 2023 2022
Europe 1,713 1,710 1,710
Asia 2,542 2,542 2,542
Americas [B] 3,821 3,821 3,821
Total 8,076 8,073 8,073

[A] Includes the Shell share of capacity entitlement (offtake rights) of joint ventures and associates, which may be different from nominal equity interest. Nominal capacity is quoted
at December 31, 2024.
[B] Shell Polymers Monaca, which commenced operations in November 2022, was not fully functional during 2023 due to operational and start-up challenges. The facility has since ramped
up operations since the first quarter of 2024.

Chemicals sales volumes [A]

Thousand tonnes/year
2024 2023 2022
Europe
Base chemicals 2,113 1,741 2,809
Intermediates and other chemical products 1,889 1,848 1,955
Total 4,001 3,589 4,764
Asia
Base chemicals 1,198 1,190 825
Intermediates and other chemical products 1,744 1,917 2,147
Total 2,943 3,107 2,972
Americas
Base chemicals 1,366 1,508 2,125
Intermediates and other chemical products 3,566 3,041 2,420
Total 4,932 4,549 4,545
Total product sales
Base chemicals 4,677 4,439 5,759
Intermediates and other chemical products 7,199 6,806 6,522
Total 11,875 11,245 12,281

[A] Excludes feedstock trading and by-products.

65 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Chemicals and Products continued

Major chemical plants [A]

Thousand tonnes/year, Shell share capacity [B]

Styrene Ethylene Higher olefins Additional
Location Ethylene Polyethylene monomer glycol [C] products
Europe
Germany Rheinland 324 — — — — A
Netherlands Moerdijk 974 — 817 154 — A, I
UK Mossmorran [D] 415 — — — — O
Asia
China Nanhai [D] 1,100 605 645 415 — A, I
Singapore Jurong Island [E][F] 281 40 1,069 924 — A, I, P, O
Pulau Bukom [F] 1,161 — — — — A
Americas
Canada Scotford — — 475 462 — A, I
USA Monaca 1,500 1,600 — — —
Deer Park 889 — — — — A, I
Geismar — — — 400 1,390 I
Norco 1,432 — — — — A
Total 8,076 2,245 3,006 2,355 1,390

[A] Major chemical plants are large integrated chemical facilities, typically producing a range of chemical products from an array of feedstocks.
[B] Shell share of capacity of subsidiaries, joint arrangements and associates (Shell- and non-Shell-operated), excluding capacity of the Infineum additives joint ventures.
[C] Higher olefins are linear alpha and internal olefins (products range from C4 to C2024).
[D] Not operated by Shell.
[E] The polypropylene and olefins production mentioned refers to Shell share of capacity of our non-operated joint ventures Petchem Corporation of Singapore (PCS) and The Polyolefin
Company (TPC) which are on Jurong Island.
[F] The plant has been classified as held for sale.

A Aromatics, lower olefins

I Intermediates
P Polypropylene
O Other

Other Chemicals locations [A]

Location Products
Europe
Germany Karlsruhe A
Schwedt A
Netherlands Rotterdam A, I, O
Americas
Argentina Buenos Aires I
Canada Sarnia A, I

[A] Other chemical locations reflect locations with smaller chemical units, typically serving more local markets.

A Aromatics, lower olefins

I Intermediates
O Other

66 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Chemicals and Products continued

Progressing CCS to Carbon dioxide captured by customers in industries that are

difficult to decarbonise is liquefied, transported by ship to a

help decarbonise
receiving terminal on the Norwegian coast, then piped 100 km
offshore for safe, permanent storage 2,600 metres under the
North Sea. Agreements have already been signed with Yara,

our and customers'

the crop nutrition company, and Ørsted, the renewable energy
company, to transport and store CO2 from production facilities
in the Netherlands and Denmark respectively.

activities Northern Lights has the capacity to store around 1.5 million tonnes
of CO2 per year. It is part of the Norwegian government's Longship
project to develop a decarbonisation value chain, from carbon
capture to transport and storage, for companies in Norway and
As part of our strategy to deliver more value with less emissions, we across Europe.
are investing in carbon capture and storage (CCS) projects to help
decarbonise our own operations, as well as those of our customers. CCS hubs developed to offer CCS-as-a-service to our customers are
reported in the Renewable and Energy Solutions segment. Where
In June 2024, we took a final investment decision to proceed with existing or future CCS projects may help to decarbonise our own
the Polaris carbon capture project (Shell interest 100%) at the Shell assets, they will be reported in the segment where the asset sits.
Energy and Chemicals Park Scotford in Alberta, Canada. Polaris
is designed to capture an estimated 650,000 tonnes of CO2
annually. We also took a final investment decision to proceed with
the Atlas Carbon Storage Hub which will store the CO2 captured
by the Polaris project.

Both Polaris and Atlas are expected to begin operations towards

the end of 2028. A future additional phase of Atlas that could
potentially store carbon for the partners and other companies is
subject to a future possible investment decision.

Polaris and Atlas will build on the success of the Quest Carbon
Capture and Storage (CCS) facility (Shell interest 10%) at Scotford,
which has captured and stored more than 9 million tonnes of CO2
since 2015 (as at the end of 2024). The CO2 captured by Quest
CCS from the hydrogen manufacturing units within the upgrader is
stored in a saline aquifer more than 2 kilometres underground.

Northern lights shipments due in 2025

In September 2024, our Northern Lights joint venture in Norway 1, 2. The Northern Lights receiving terminal in Norway. CO2 is transported by ship,
(Shell interest 33.3%) with Equinor and TotalEnergies, completed then piped 100 km offshore and stored 2,600 metres under the North Sea.
the onshore and offshore facilities for the world's first project to
offer commercial carbon transport and storage as a service.
The first marine CO2 shipments are expected in 2025.

67 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value

Renewables
and Energy
Solutions
Renewables and Energy Solutions (R&ES)
includes activities such as renewable power
generation, the marketing and trading and
optimisation of power and pipeline gas, as
well as carbon credits and digitally enabled
customer solutions. It also includes the
production and marketing of hydrogen,
development of commercial carbon capture
and storage hubs, investment in nature-based
projects that avoid or reduce carbon
emissions, and Shell Ventures, which invests
in companies that work to accelerate the
energy and mobility transformation.

(1.2) (0.5)
Segment earnings ($ billion) Adjusted Earnings ($ billion)
(2023: 3.1) (2023: 0.8)

3.8 306
Cash flow from operating External power sales
activities ($ billion) (terawatt hours)
(2023: 3.0) (2023: 279)

652
Sales of pipeline gas
to end-use customers
(terawatt hours)
(2023: 738)

68 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Renewables and Energy Solutions continued

In 2024, we continued to develop our portfolio of renewable Key metrics [A]

and low-carbon solutions, with an increased focus on energy
storage, flexible generation and, increasingly, on power trading. $ million, except where indicated
We started commercial operations at an offshore wind park in the 2024 2023 2022
Netherlands and at two solar parks in Italy and the USA. We also Segment earnings*[B] (1,229) 3,089 (1,027)
agreed to acquire a combined-cycle gas turbine power plant to
strengthen our power business in New England, USA. We made Identified items (732) 2,333 (2,805)
progress in carbon capture and storage by taking the final Adjusted Earnings*[B] (497) 756 1,778
investment decisions to proceed with two projects in Canada, Adjusted EBITDA*[B] (22) 1,481 2,503
while our Northern Lights joint venture completed its onshore
Cash flow from operating activities 3,798 2,984 (6,394)
and offshore facilities in Norway for the world's first commercial
carbon transport and storage project. See "Outlook" on pages Cash capital expenditure* 2,549 2,681 3,469
16-17 for our Capital Markets 2025 investor update. External power sales (terawatt hours) [C] 306 279 243
Sales of pipeline gas to end-use customers
Business conditions (terawatt hours) [D] 652 738 843
For the business conditions relevant to Renewables and Energy
Solutions, see "Market overview" on pages 28-30. [A] See Note 7 to the "Consolidated Financial Statements" which includes an explanation of
the reporting segment changes applicable from 2024.
[B] Segment earnings, Adjusted Earnings and Adjusted EBITDA are presented on a current
cost of supplies basis.
Financial delivery [C] Physical power sales to third parties; excluding financial trades and physical trade with
brokers, investors, financial institutions, trading platforms, and wholesale traders.
[D] Physical natural gas sales to third parties; excluding financial trades and physical trade
Earnings 2024-2023 [A] with brokers, investors, financial institutions, trading platforms, and wholesale traders.
Excluding sales of natural gas by other segments and LNG sales.
Segment earnings in 2024 decreased by $4,318 million compared
with 2023. This reflected lower margins (decrease of $1,719 million),
Cash capital expenditure
mainly from trading and optimisation primarily in Europe due to lower
Within cash capital expenditure, $1.6 billion was in low-carbon
volatility. This was partly offset by lower operating expenses (decrease
energy solutions. This includes Renewable Power Generation,
of $632 million). Segment earnings in 2024 also included net
Environmental Solutions, Hydrogen and CCS. In 2023, cash capital
impairment charges and reversals of $1,085 million, mainly related
expenditure included $2.3 billion in low-carbon energy solutions.
to renewable generation assets in North America, and partly offset
Higher cash capital expenditure in 2023 was mainly a result of
by favourable movements of $300 million relating to an accounting
Hollandse Kust Noord spending.
mismatch due to fair value accounting of commodity derivatives, and
a net gain on sale of assets of $94 million. These net charges and
Our cash capital expenditure* is expected to be in the range
favourable movements are part of identified items and compare with the
of $2-3 billion in 2025.
full year 2023 which included favourable movements of $2,756 million
due to the fair value accounting of commodity derivatives, partly offset
by net impairment charges and reversals of $669 million. As part of See "Our journey to net zero" on page 87.
Shell's normal business, commodity derivative hedge contracts are
entered into for the mitigation of economic exposures on future
purchases, sales and inventory. Operational performance
Adjusted Earnings were a loss of ($497) million in 2024. Adjusted External power sales
Earnings from Renewable Power Generation, Hydrogen, CCS, Nature- In 2024, our external power sales increased compared with 2023
Based Solutions (NBS) and Shell Ventures accounted for 146% of as a result of organic customer growth across the portfolio and
2024 negative Adjusted Earnings. These were partially offset by acquisitions.
positive Adjusted Earnings contributions from Energy Marketing
and Trading and Optimisation (46%). Sales of pipeline gas to end-use customers
In 2024, the decrease in our sales of pipeline gas to end-use customers
Prior year earnings summary was mainly driven by the decision to prioritise value over volume,
Segment earnings reflected lower margins (a decrease of $684 focusing on higher-margin sales.
million), mainly from trading and optimisation. This was due to lower
gas and power price volatility in 2023, unfavourable tax movements
(a decrease of $218 million), and higher operating expenses resulting Strategic progress
from business growth (an increase of $168 million). Segment earnings
also included favourable movements of $2,756 million due to the fair Portfolio and business developments
value accounting of commodity derivatives, partly offset by net Key portfolio and business developments:
impairment charges and reversals of $669 million. These favourable ￮ In January 2024, our Savion subsidiary completed the sale of its
movements and charges are part of identified items and compare with 50% interest in the Madison Fields 180 MW solar development in
2022, which included unfavourable movements of $2,443 million due Ohio, USA, to InfraRed Capital Partners.
to the fair value accounting of commodity derivatives and impairment ￮ In March 2024, we sold our 50% interest in SouthCoast Wind, a
charges of $361 million. joint venture established to develop wind projects off the coast of
Massachusetts, USA, to our partner, Ocean Winds.
Cash flow from operating activities
￮ In March 2024, Hollandse Kust Noord, our offshore wind park in the
Cash flow from operating activities was primarily driven by net cash
Netherlands (Shell interest 79.9%), achieved commercial operations.
inflows related to derivatives of $3,012 million and working capital
￮ In May 2024, Shell opened its first solar park in Zamboni, Italy, with
inflows of $923 million, partly offset by tax payments of $457 million
a capacity of 20 MW.
and Adjusted EBITDA.
￮ In June 2024, together with our partner, ATCO EnPower we took the
* Non-GAAP measure (see page 445). final investment decision on the Atlas Carbon Storage Hub in Canada.

69 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Renewables and Energy Solutions continued

￮ In July 2024, we took the final investment decision to build REFHYNE II, March 2024 after producing its first electricity in June 2023. The wind
a 100 MW electrolyser to produce renewable hydrogen, in Germany. farm plans to supply electricity to the 200 MW electrolyser Holland
￮ In September 2024, the Northern Lights joint venture (Shell interest Hydrogen 1 (Shell interest 100%) that we are building in the
33.3%) completed the construction of carbon storage facilities in Netherlands
Norway.
￮ In October 2024, we signed an agreement to acquire RISEC
Holdings, which owns a 609 MW two-unit combined-cycle gas
turbine power plant in Rhode Island, USA. We completed the
transaction in January 2025.
￮ In December 2024, Rangebank battery energy storage system
(BESS) in Australia became operational.

Business and property

We are building a business to deliver clean energy for our customers.

Despite the rapid growth seen in recent years, the renewable energy
sector as a whole is experiencing significant challenges, including
supply chain disruptions and regulatory hurdles, which have led to
delays, increased costs and downward pressure on margins. 2024 was
a year of significantly lower volatility in gas and power markets, which
prevented us from maintaining trading and optimisation results at the Savion completes build and sale of Madison Fields
levels we have seen in previous years. Our market outlook and supply In the USA, our wholly owned subsidiary Savion is a utility-scale
chain environment has also deteriorated, resulting in significant solar and energy storage developer. Savion specialises in
impairment charges across various assets within our North American developing solar power and energy storage projects, serving a
and European portfolios. To address this and given our focus on value, variety of customers, including utilities and major commercial
we refreshed our renewable generation, energy marketing, and gas and industrial organisations.
and power trading strategy in December 2024. As part of this refresh,
we are shifting our asset portfolio towards energy storage and flexible In January 2024, Savion completed the construction and sale
generation, and we are reducing investments in offshore wind assets. of its 50% interest in the Madison Fields 180 MW solar park to
Our refresh also sees an increased focus on gas and power trading, InfraRed Capital Partners. Madison Fields, in Madison County,
leveraging our existing capabilities and technology to improve returns Ohio, is the first project to be designed, developed and owned
of this business. We also aim to maximise returns from our existing by Savion. In July 2024, the project achieved commercial
onshore positions by using capital-light business models, debt finance operations and Savion entered into a long-term power purchase
and working with partners. agreement (PPA) with Amazon for the offtake of the facility's full
capacity generation of solar energy.
Energy marketing
We provide electricity and smart energy solutions to residential, Savion also signed an agreement in June 2024 to sell the 150
commercial and industrial customers. We do this through direct MW Cass County Solar Project in Illinois, to Ameren Missouri.
electricity sales, storage solutions and energy optimisation services. In December 2024, Savion's solar farm in Martin County in
Our largest markets for commercial and industrial customers are Kentucky, USA reached commercial operations.
Australia and the USA. In Australia, we are one of the largest
Photo: Madison Fields solar park, Ohio, USA.
commercial and industrial retailers of electricity in the market.

Trading and optimisation

We trade and optimise power and pipeline gas, and carbon credits In May 2024, Shell opened its first solar park in Zamboni, Italy, with a
from our own assets and from third parties. We work with Shell capacity of 20 MW. Shell also signed a power purchase agreement for
businesses across regions to offer energy solutions that can help our Baker Hughes to offtake part of the power generated at the plant.
customers decarbonise. We have a gas and power trading presence
in key markets, including the Americas and Europe, but also in Australia At the end of 2024, our share of renewable power generation
and Asia. capacity was 3.4 GW in operation and 4.0 GW in development.
Our renewable power generation capacities are listed below:
In October 2024, we signed an agreement to acquire RISEC Holdings,
which owns a 609 MW two-unit combined-cycle gas turbine power Renewable power generation capacity in operation and
plant in Rhode Island, USA. We completed the transaction in January in development as of December 31, 2024 - by region
2025. This acquisition secures long-term supply and capacity offtake
for Shell in the deregulated Independent System Operator New In operation [A] In development [B]
England (ISO New England) power market. 100% Shell 100% Shell
capacity interest capacity interest
Renewable power generation Location (MW) (MW) (MW) (MW)
We enable renewable power generation by owning and operating Asia 2,394 1,983 2,220 2,047
solar plants and wind farms, and by participating in joint ventures. Europe 1,858 1,118 965 661
We target selective growth in markets where there is potential
Americas 465 214 1,920 1,165
for integration with our value chain.
Australia — — 120 120
A significant milestone was achieved by the CrossWind joint venture Other 84 76 18 17
(Shell interest 79.9%) when the Hollandse Kust Noord offshore wind Total 4,801 3,391 5,243 4,010
development in the Netherlands achieved commercial operations in

70 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Renewables and Energy Solutions continued

Renewable power generation capacity in operation In September 2024, the Northern Lights joint venture (Shell interest
and in development as of December 31, 2024 33.3%) in Norway completed the construction of its carbon storage
facilities. Northern Lights is designed to transport and store up to 1.5
2024 2023 2022 million tonnes of CO2 per year in its first phase. We expect the first
Renewable power generation capacity shipment of CO2 in early 2025 from industrial customers in Norway
(Shell interest - gigawatts): and Continental Europe. Equinor and TotalEnergies are equal partners
In operation [A] 3.4 2.5 2.2 in the joint venture.
In development [B] 4.0 4.1 4.2
In June 2024, Shell took an FID with its partner, ATCO EnPower, on
[A] Renewable generation capacity post commercial operation date. the Atlas Carbon Storage Hub (Shell interest 50%). Atlas is designed
[B] Renewable generation capacity under construction and/or committed for sale under
long-term offtake agreements (PPA).
to store an estimated 650,000 tonnes of CO2 captured annually from
the Shell Energy and Chemicals Park Scotford in Alberta, Canada. The
Hydrogen CO2 is to be captured by Shell's Polaris project for which an FID was
Hydrogen can help reduce emissions for our customers in sectors which also taken in 2024. Both Polaris and Atlas are expected to begin
are hard to decarbonise, such as heavy industry and heavy-duty road operations towards the end of 2028.
transport. We can also use it to help decarbonise our own assets. Shell
is part of joint ventures and alliances that have built electrolysers and See "Progressing CCS to decarbonise our and customers' activities" on page 67.
hydrogen filling stations. We have also participated in feasibility
studies that aim to show the viability of a global import and export
market for hydrogen. Shell also has CCS project opportunities at earlier stages of
development in Canada, the USA, Europe, the Middle East and Asia.
When it comes to developing hydrogen investment opportunities, we aim
to do so where we see adjacencies with our integrated business value Nature and environmental solutions
chain and where we believe there are pathways to attractive returns. Through the Nature Based Solutions (NBS) business and the
Since 2021, we have operated an electrolyser (Shell interest 100%) in Environmental Products Trading Business (EPTB), we provide carbon
Germany, which produces hydrogen using electricity from renewable credits to our customers. NBS invests in projects that conserve, enhance
sources. In July 2022 we announced the final investment decision to and restore ecosystems – such as forests, grasslands and wetlands –
build Holland Hydrogen I. Construction is progressing well, and we to prevent GHG emissions or reduce atmospheric CO2 levels.
expect to start commissioning in late 2026, with production ramp-up
in 2027. In July 2024, we took the final investment decision to build Through EPTB, we develop, source, offtake, trade and supply
REFHYNE II, a 100 MW electrolyser to produce renewable hydrogen environmental products across compliance and voluntary markets.
in Germany. We plan to use this hydrogen to partially decarbonise the This includes working with our other businesses such as Integrated
Shell Energy and Chemicals Park Rheinland. We expect the electrolyser Gas or Marketing to provide integrated energy solutions to customers.
to be operational by the end of the decade.
Shell Ventures
Through Shell Ventures entities we act as an investor and a partner
to start-ups, businesses and venture funds to help accelerate the
energy and mobility transformation. We invest in companies that
work on solutions to lower emissions, electrify energy systems, gain
data-based insights and provide innovative consumer solutions.

Investments
Within R&ES, we maintain an integrated business model with
trading and optimisation to help us manage our value delivery. Our
investments in low-carbon solutions are subject to financial modelling
and stress-testing, due diligence and risk assessments to ensure that
our capital is allocated to the most attractive low-carbon projects
and opportunities.

Photo: Holland Hydrogen I, one of Europe's largest renewable hydrogen plants, under
construction in the Netherlands.

Carbon capture and storage (CCS)

We report existing CCS operations that help decarbonise our
own assets in the segment where the relevant asset sits. We also offer
carbon capture, transport and storage to our customers as we seek
to help them decarbonise.

71 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value

Corporate
Corporate covers the non-operating activities
supporting Shell. It comprises Shell's holdings
and treasury organisation, headquarters
and central functions, self-insurance activities,
and centrally managed longer-term
innovation portfolio.

(3.0) (2.0)
Segment earnings ($ billion) Adjusted Earnings ($ billion)
(2023: (2.9)) (2023: (2.9))

(1.9)
Cash flow from operating
activities ($ billion)
(2023: (0.8))

72 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Corporate continued

Headquarter and central functions provide communications, Key metrics [A]

finance, treasury, human resources, information technology (IT),
legal, real estate and security services to the businesses. These $ million, except where indicated
functions also provide support for shareholder-related activities, 2024 2023 2022
such as investor relations. The central functions are supported
Segment earnings*[B] (2,992) (2,944) (2,562)
by business service centres, which process transactions, manage
data and produce regulatory returns, among other services. Identified items (1,024) (69) (90)
Adjusted Earnings*[B] (1,968) (2,875) (2,472)
All finance expense, income and related taxes for Shell, which is Adjusted EBITDA*[B] (675) (1,164) (856)
headquartered in London, are included in the Corporate segment
Cash flow from operating activities (1,882) (832) 2,192
earnings rather than the business segment earnings. Most headquarter
and central function costs are recovered from the business segments. [A] See Note 7 to the "Consolidated Financial Statements" which includes an explanation of
Costs that are not recovered or relate to centrally managed activities the reporting segment changes applicable from 2024.
[B] Segment earnings, Adjusted Earnings and Adjusted EBITDA are presented on a current
are retained in Corporate. cost of supplies basis.
* Non-GAAP measure (see page 445).
The Holdings and Treasury organisation manages many of our
corporate entities. It is the point of contact between Shell and Prior year earnings summary
external capital markets and, for example, raises debt instruments An increase in the negative segment earnings was mainly driven
and conducts foreign exchange transactions. Treasury centres in by unfavourable movements in currency exchange rate effects
London and Singapore support these activities. and tax credits.

Shell's innovation portfolio is managed as a central function. We have Cash flow from operating activities
major research and development (R&D) centres in the Netherlands, the Cash flow from operating activities decreased primarily due to
USA and India, and smaller specialised centres in Germany, Brazil and unfavourable working capital movements.
China. We use technology to enhance our existing value chains and
help build the energy system of the future. Shell's longer-term innovation Self-insurance
portfolio is reported as part of the Corporate segment. Other innovation Shell, like other major oil and gas companies, self-insures most of
portfolio activities are reported in the business segments. its exposures to hazard risks. Our Group insurance companies are
wholly owned subsidiaries. They provide insurance coverage to our
Earnings 2024-2023 subsidiaries and entities in which we have an interest, including those
An increase in the negative segment earnings was mainly driven by that are not controlled by Shell.
reclassifications, from equity to profit and loss, of cumulative currency
translation differences principally triggered by changes in the funding We continually assess the safety performance of our operations and
structure. This resulted in unfavourable movements of $1,122 million, make risk mitigation recommendations, where relevant, to keep the
included in identified items, and was partially offset by favourable risk of an accident as low as possible. Our insurance companies are
tax movements, net interest movements and currency exchange adequately capitalised and they may transfer risks to third-party
rate effects. insurers where economical, effective and relevant.

See "Risk factors" on page 140.

Photo: A view of the Shell Centre, our headquarters, from across the River Thames in
London, UK.

73 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value

Other central activities

Shell operates certain key activities centrally. These include Projects Cyber security risk management
& Technology, intellectual property and information technology. Our cyber security capabilities are embedded into our IT systems,
This allows us to provide leadership, innovation and risk and our IT and data are protected by various detective and protective
management across our business. technologies and controls. A structured approach to identify, assess
and mitigate the IT and cyber security risks is built into our support
Information technology and cyber security processes and is benchmarked to external best practices. We
Digitalisation is a key success factor in delivering Shell's strategy. continuously track cyber-attacks, threat intelligence, cyber legislation
We are transforming our IT systems to support our evolving portfolio (including the EU AI Act) and vulnerabilities relevant to our IT
of businesses. We invest in new technologies, such as artificial landscape and have a well-structured incident management and
intelligence (AI) and quantum computing, to enhance our IT escalation process in place.
capabilities and bring value to the business.
The security of IT services, where operated by external IT companies, is
The growing dependence on IT and rising data volumes introduce risks. managed through contractual clauses and additionally through formal
A breach in IT systems or data loss could significantly impact Shell and supplier assurance reports for critical IT services. Shell collaborates bi-
its supply chain, leading to productivity disruptions, loss of confidential annually with third parties and supplements these reports with bi-
information, regulatory penalties, and potential reputational harm. annual internal benchmarking to assess our cyber security risk
Additionally, sanctions, including orders to delete data and regulatory management practices against cyber security best practices and peer
fines, might be imposed on Shell if authorities find Shell failed to meet organisations. Using the insights gained from these assessments, along
its obligations in relation to cyber security or personal data protection. with changes in external risks and the outcome of internal audits and
control testing results, we enhance our cyber security capabilities and
In 2024, we continued to implement a comprehensive cyber security adopt a risk-based strategy for our investment decisions concerning
programme as part of our cyber defence strategy. This was done cyber risk exposure.
through the formalisation of the Information and Digital Technology
(IDT) requirements based on the Shell Performance Framework (SPF). Shell employees and contract staff are required to complete mandatory
Our Information and Digital Technology Standard sets out a structured training courses and participate in regular cyber threat awareness
approach to identify, assess and mitigate IT and cyber security risks. campaigns. In 2024, we introduced the Think Secure Scorecard across
Following the approval of the IDT requirements, we refreshed our the organisation. This provides data insights into the cyber behaviour
Information Risk Management (IRM) capabilities and streamlined of Shell staff on an individual level, encouraging continuous learning
the organisational structure to enhance the formal Chief Information about cyber threats and advocating personal accountability. Shell has
Security Officer (CISO) role, with support from the Executive robust governance processes to monitor key cyber risks, provide risk
Committee. This included integrating the cyber defence teams and other assurance and encourage a corporate culture that prioritises security.
decentralised cyber security functions into the central IRM organisation.
These changes are in effect from March 2025. Our cyber security strategy is regularly reviewed and updated, as
required, by our CISO and Shell's Information and Digital Technology
Our global integrated IRM and cyber defence teams are staffed with leadership team, with oversight from the EC, the Audit and Risk
cyber security professionals that monitor, assure and help defend our Committee, and the Board. These reviews involve consideration of
global IT and data landscape. As all our employees play a role in external environment changes; strategic, operational, and cultural
protecting our IT systems, we give them training on data protection, risks; response to cyber security risks and implementation of further
regulatory compliance and regularly run cyber security awareness remedial actions as appropriate; and updates on the performance
campaigns and simulations on how to respond to cyber-attacks.We and benchmarking of the Group's cyber defences. In 2024, dedicated
evaluate emerging digital technologies with our businesses annually to deep dives into areas, such as geopolitical developments and artificial
align on their impact and necessary remediation, considering the value intelligence (AI), were performed. In 2024, Shell reported data privacy
and opportunities they present, as well as their incremental risks. incidents to regulatory authorities across multiple jurisdictions. There
Additionally, Shell works to monitor and respond in real time to cyber were no cyber or data privacy incidents that had a material impact
security incidents as they happen. on Shell's business strategy, operations, or financial condition.

74 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Generating shareholder value | Other central activities continued

The IRM organisation leadership teams involved in monitoring and

managing our cyber security threat risk and assurance process have
an average of around 25 years of experience. The IRM organisation is
led by our CISO, who has more than 20 years of experience in the IT
and information security field, including serving as the chief information
officer for various large public companies. In addition to holding
the Certified Information Systems Security Professional (CISSP)
certification, our CISO holds other qualified technical expert
certifications, has completed the London School of Economics Executive
Development programme, and holds an undergraduate degree in
management information systems, risk management, and corporate
finance. Our CISO is active in various cyber-security industry trade
groups and is on the board of Oil and Natural Energy Information
Sharing and Analysis Center (ONE-ISAC), having previously Innovation is pivotal to what we do
held leadership positions in the oil and gas cyber security sector.
Our research and development (R&D) seeks to deliver
Intellectual property innovative, cost-competitive solutions that meet global energy
At Shell, we have a wide-ranging intellectual property (IP) portfolio demands while reducing emissions. To achieve this, we have
which includes patents, trademarks, know-how, trade secrets and a network of R&D centres and collaborate closely with our
copyrights. The distinctive Shell Pecten, a trademark in use since the customers, suppliers and partners, as well as with many of
th
early 20 century, and trademarks where the word Shell appears, help the world's leading universities and research institutes.
raise the profile of our Shell brand globally. We protect and defend
our IP and we respect the valid IP rights of others. At December 31, Global Lubricants
2024, we held 8,677 patents. This includes granted patents and In 2024, for instance, our Global Lubricants business was
pending patent applications. named industry leader by market analysts Kline + Company for
the 18th consecutive year for consumer automotive, commercial
Shell holds trademarks globally, even in countries where we no longer automotive and industrial lubricants. These lubricants are
operate. For instance, in 2024, we renewed national trademark designed to continually push the boundaries of engine and
registrations for the word marks "Shell", "Shell Spirax" and the Shell equipment performance and longevity, as well as to reduce
logo, through our local agent SABA Intellectual Property, who paid emissions. This leadership is built on more than 45 years of
$10,543 in official fees to the Syrian Patent Office. Although we research and commercial development of our proprietary gas-to-
ceased operations in Syria in 2011, these renewals do not indicate liquids (GTL) technology with which we make high-quality liquid
any product sales in the country. fuels, base oils for lubricants, and other speciality products from
natural gas.
Innovation
We use technology to improve our efficiency, safety and Keeping data centres cool
competitiveness. By applying our technical and digital capabilities, We recently extended our comprehensive GTL product range
we can also help build the low-carbon energy system of the future. In by developing an immersion cooling fluid for data centres that
2024, we invested $1,099 million in research and development (R&D). significantly improves their performance and energy efficiency.
We combine our expertise in R&D with digital solutions, often powered Data centres consume vast amounts of electricity to power the
by AI, to help accelerate innovation and scale up more effectively. servers and cool the heat they generate. Our new GTL
immersion cooling fluid allows servers to run faster and cooler,
Shell's Projects & Technology organisation and our businesses work improving computing performance and enabling considerable
together to determine the content, scope and budget for developing reductions in energy use, CO2 emissions and operating costs
new technology that supports our activities. This includes partnering compared to conventional air cooling.
with start-ups and small- to medium-sized enterprises that are in the
Second-generation biofuels
early stages of developing new technologies through our Shell
Shell is one of the world's largest producers, distributors and
Ventures and Shell GameChanger programme. New technology is
traders of biofuels made from sugar cane, corn and other types
developed using a maturation process, to systematically mitigate
of biomass. In 2024, we commissioned a demonstration plant in
technical and commercial risks, while staying aligned with Shell's
partnership with Green Plains in Nebraska, USA, that uses our
strategic ambitions and deployment commitments.
proprietary Shell Fibre Conversion Technology to convert the oil in
corn kernels into second-generation low-carbon biofuel and high-
See "Risk factors" on page 141. protein animal feed. This bolt-on technology is designed to help
first-generation ethanol producers increase yield and margin –
making their operations more valuable and more resilient.

Photo: Two scientists analysing industrial and off-highway lubricants at Shell's

Shanghai Technology Centre, China.

75 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year

Our journey
to net zero
We have a target to
be a net-zero emissions
energy business by
2050 and work with our
customers across sectors
to help accelerate the
energy transition.

76 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Shell's energy transition plans LNG provides both energy security and flexibility because it can be
Our target is to become a net-zero emissions energy business by easily transported to places where it is needed most. It is also a critical
2050 and we are transforming our operations and energy products. fuel in the energy transition. Natural gas is the lowest-carbon fossil fuel,
We believe this target supports the more ambitious goal of the Paris producing around 50% less carbon emissions than coal when used to
Agreement, to limit the rise in the global average temperature this generate electricity, according to the International Energy Agency.
century to 1.5°C above pre-industrial levels.
Upstream - cutting emissions from oil and gas production.
The Paris Agreement aims to strengthen the global response to As we sustain oil and gas liquids production, we will continue to focus
the threat of climate change by "holding the increase in the global on delivering more value with less emissions. The oil we are producing
average temperature to well below 2°C above pre-industrial levels will increasingly come from our deep-water business. Through
and pursuing efforts to limit the temperature increase to 1.5°C above innovative designs, our deep-water platforms are producing higher-
pre-industrial levels". margin and lower-carbon barrels.

As we implement our strategy to deliver more value with less emissions, As a responsible energy producer, we are implementing carbon
we are responding to evolving global demand by offering our management plans and working to reduce carbon emissions from our
customers more and cleaner energy solutions. assets. We are looking at ways to electrify our offshore oil facilities,
and using wind and solar power to reduce operational emissions.
The world needs a balanced energy transition, one that maintains We see CCS as a core technology to further capture emissions from
secure energy supplies, while accelerating the transition to affordable our facilities, reusing our own oil and gas fields where possible.
low-carbon solutions. We believe our strategy supports a balanced
transition by providing the oil and gas people need today, while We set a target to eliminate routine flaring from our upstream-operated
helping to build the energy system of the future. assets by 2025 [A] five years ahead of the World Bank's initiative.
Routine flaring burns gas that is not used or reinjected into wells,
We recognise that the scale of the energy transition requires which is inefficient and contributes to climate change. With effect from
fundamental change in both supply and demand. It will take supportive January 1, 2025, SPDC has ceased routine flaring of associated gas,
government policies, advances in technology and investments by with the completion of essential gas capture projects and the shut-in
companies across all parts of the economy to achieve this. We of remaining facilities from which gas cannot be transported to market.
advocate policies, legislation and regulations in areas where we can We have therefore met our target to eliminate routine flaring from our
best support the decarbonisation of our customers, reduce our own upstream-operated assets by 2025 as of this date.
emissions and help accelerate the energy transition. [A] This target was subject to the completion of the sale of The Shell Petroleum Development
Company of Nigeria Limited (SPDC). As detailed elsewhere in this report, on March 13,
2025, Shell completed the sale of SPDC to Renaissance.
There remains significant uncertainty around the shape of the future
energy system. As a result, we are developing a multi-energy portfolio
Downstream, Renewables and Energy Solutions –
that has the flexibility to respond to uncertainty, and that we believe
focusing our businesses to offer more low-carbon
will allow us to remain a successful business while working towards net-
solutions while reducing sales of oil products.
zero emissions. We are changing the mix of energy products we sell
We are starting from a place of strength. We believe that our global
and developing new carbon removal and abatement businesses.
customer reach, our innovation and technology, and the strength of our
supply and trading capabilities, mean we are well placed to deliver the
We aim to lead in the energy transition where we have competitive
low-carbon solutions people and businesses need, such as electric
strengths, see strong customer demand, and identify clear regulatory
vehicle charging and biofuels, to support our customers as they
support from governments.
decarbonise. Leveraging our integrated portfolio of energy and
chemicals parks, terminals and blending plants, we will make, buy, and
We are reducing emissions from our operations, and helping our
blend products to meet customer demand. We are also able to identify
customers transition to more cost-competitive and cleaner energy
changes in demand for products so that we can respond quickly.
solutions. Our energy transition plans cover all our businesses.
To help us get to net zero, we have set short-, medium- and long-term
Integrated Gas - growing our world-leading LNG
targets to reduce the carbon intensity of the energy products we sell,
business with lower carbon intensity
measured by using our net carbon intensity (NCI) metric. We believe
We plan to grow our LNG volumes by adding new liquefaction
these targets are aligned with a 1.5°C pathway derived from scenarios
capacity. We are developing new projects with lower carbon
developed for the IPCC's Sixth Assessment Report (AR6). For more
intensity by using renewable power and carbon abatement technology
information see "Setting targets for NCI" on page 102.
in the form of carbon capture and storage (CCS). Beyond our own
production, we will continue to add scale and flexibility to our portfolio
We set out our climate-related targets and ambition on page 93.
by growing the LNG volumes that we purchase from third parties.

See "Our strategy" on pages 10-13.

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Climate-related risks and opportunities identified ￮ managing our Integrated Gas and Upstream portfolio to support a
by Shell over the short, medium and long term balanced energy transition by cutting emissions from oil and gas
We are continually enhancing our approach to assessing and production. Oil production is increasingly from our deep-water
managing risks and opportunities resulting from climate change. business which, through innovation, produces higher-margin and
This includes considering different time horizons and their relevance to lower-carbon barrels; and
risk identification and business planning. We actively monitor societal ￮ focusing our businesses in Downstream and Renewables and Energy
developments, such as regulation-driven carbon pricing mechanisms Solutions to offer more low-carbon energy solutions, while reducing
and customer-driven preferences for products. We incorporate these sales of oil products.In addition, we adapt our assets and activities
developments, where relevant, into potential scenarios which provide as necessary to enhance our resilience to the physical risks related
insights into how the energy transition may unfold in the medium and to climate change. Many of these adaptations are based on our
long term. These insights and those from various external scenarios Safety, Environment and Asset Management (SEAM) Standards and
(such as those prepared for the IPCC AR6) help guide how we set our practices.
strategy, capital allocation and climate-related targets and ambition.
See page 83 for more details of physical risks.
The process for identifying and assessing climate-related risks is set
out in "Risk management" on page 134. The impact and likelihood
assessment described on page 134 helps us to prioritise climate-related Our approach to climate change emphasises the need to work
risks and determine their relative materiality, based on a collaboratively. We aim to continue to build strategic alliances with
comprehensive picture of significant risks to any relevant business customers, other companies and entire sectors so we and they can
objectives. We consider climate-related risks from a strategic, make profitable progress towards net zero.
operational, conduct and culture perspective to help us maintain a
comprehensive view of the different types of climate risks we face and We engage with governments on their climate policies to advocate
the different time horizons in which they may affect us. Monitoring and policies that help establish regulatory frameworks that will help to
reviewing risks is a key risk management process. The EC, the Board enable society to reach the goals of the Paris Agreement. We are
and Board committees review climate-related risks and their impact a founding member of the Oil and Gas Climate Initiative (OGCI), a
on the Group, as appropriate. This allows management to take a group of 12 national and international energy companies. The OGCI
holistic view and optimise risk mitigation responses, to ensure that supports the climate goals of the Paris Agreement and recognises that
climate-related risk responses are properly integrated into the collective actions can help drive the energy transition.
relevant activities.
We are signed up to the Oil and Gas Decarbonization Charter
Shell has identified climate change and the energy transition as (OGDC), in which companies have pledged to achieve near-zero
a material risk. The risk could potentially continue to result in changes methane emissions by 2030, zero routine flaring by no later than
to the demand for our products, supply chains and markets; further 2030 and commit to halving scope 1 and 2 emissions by or before
changes to the regulatory environment in which we operate; and 2050. In April 2024, we became the first official partner to the World
increased litigation (see Note 32 to the Consolidated Financial Bank Global Flaring and Methane Reduction Fund partnership which
Statements "Legal proceedings and other contingencies" on we committed to at the 28th Conference of the Parties (COP28) in
page 309). 2023. We are a founding signatory of the Oil and Gas Methane
Partnership (OGMP) 2.0 reporting framework. Shell achieved the
The risk is composed of a combination of complex and interrelated OGMP 2.0 Gold standard of reporting in 2023.
elements that affect Shell's value chain and our asset, product and
business portfolio. The risk landscape is evolving rapidly. To achieve As a leading global energy business, Shell seeks to identify
our climate-related targets and ambition, active holistic management opportunities in the energy transition. These risks and opportunities
of all climate-related risk components is important. The composite are described below. Climate-related risks are also summarised in
risk is broken down into the following sub-components: the "Risk management and risk factors" section on pages 137-138.
￮ commercial risk;
￮ regulatory risk; Time horizons: short, medium and long
￮ societal risk (including litigation risk); and Due to the inherent uncertainty and pervasive risks across our strategy
￮ physical risk. and business model, we monitor climate-related risks and opportunities
across multiple time horizons.
We are working to mitigate our identified climate-related risks and ￮ Short term (up to three years): we develop detailed financial
deliver more value with less emissions by focusing on performance, projections and use them to manage performance and expectations
discipline and simplification. We believe we are positioning ourselves on a three-year cycle. These projections incorporate decarbonisation
to achieve our financial targets, and climate-related targets and measures required to meet our short-term targets.
ambition by: ￮ Medium term (generally three to 10 years): these are embedded
￮ reducing the GHG emissions from our operations (Scope 1 and 2) by within our Operating Plan, with our continued focus on the customer,
improving our energy efficiency, deploying renewable electricity, the investments and portfolio shifts required in the medium term that
and reducing methane emissions in our assets and projects; will reshape Shell's portfolio.
￮ growing our LNG business while decarbonising our LNG portfolio in ￮ Long term (generally beyond 10 years): our portfolio and product
two main ways: by growing our portfolio with a lower carbon mix are expected to evolve over time with changing customer
intensity, and continuing to invest in emissions abatement projects to demand.
reduce both CO₂ and methane emissions;

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Strategic Report | Performance in the year | Our journey to net zero continued

Transition risks
Description CR1 Climate-related commercial risk
￮ The transition to a low-carbon economy may lead to lower sales volumes and/or margins due to a general reduction or elimination
of demand for oil and gas products, possibly resulting in underutilised or stranded oil and gas assets, and a failure to secure
new opportunities.
￮ Changing preferences of investors and financial institutions could reduce access to and increase the cost of capital.

Relevant time medium and long

horizon

Potential material Lower demand and margins for oil and gas products
impacts ￮ Changing customer sentiment favouring the use of renewable and sustainable energy products may reduce demand for our oil and
gas products. An excess of fossil fuel supply over demand could in the future result in reduced fossil fuel prices. This could result in
lower earnings in the future, cancelled projects and potential impairment of certain assets.

Changing preferences of investors and financial institutions

￮ Certain investors have decided to divest their investments in fossil fuel companies. If this were to increase significantly, it could have a
material adverse effect on the price of our securities and our ability to access capital markets. Some investors and financial institutions
have been aligning their portfolios to a low-carbon and net-zero world, driven by both regulatory and broader stakeholder pressures.
￮ A failure to decarbonise our business portfolios in line with investor and lender expectations could have a material adverse effect on
our ability to access financing for certain types of projects. This could also adversely affect our partners' ability to finance their portion
of costs, either through equity or debt.
￮ Sensitivity analysis of a 1% shift in Shell's weighted average cost of capital on asset carrying values is presented in the section "Carbon
pricing and discount rate sensitivities" on page 89.

Remaining in step with the pace and extent of the energy transition
￮ The energy transition provides us with significant opportunities, as described in "Climate-related opportunities" (CO1) below. If we fail
to stay in step with the pace and extent of change, or customers and other stakeholders' demand for low-carbon products, this could
adversely affect our reputation and future earnings. If we move much faster than society, we risk investing in technologies, markets or
low-carbon products for which there may be insufficient demand. Therefore we cannot transition too quickly or we will be trying to sell
products that customers do not want. If we are slower than society, customers may prefer a different supplier, which would reduce
demand for our products and adversely affect our reputation and materially affect our financial results.
￮ Low-carbon technology and innovation are essential to our efforts to help meet the world's energy demands competitively. If we are
unable to develop the right technology and products in a timely and cost-effective manner there could be an adverse effect on our
future earnings. The operating margins for our low-carbon products and services have been, and could continue to be, lower than
the margins we have experienced historically in our oil and gas operations.

Description CR2 Climate-related regulatory risks

￮ The transition to a low-carbon economy has increased, and is likely to continue to increase the cost of compliance for our assets and/or
products, and may include restrictions on the use of hydrocarbons. The lack of net-zero-aligned global and national policies and
frameworks increases the uncertainty around this risk.

Relevant time short, medium and long

horizon

Potential material Increased compliance costs

impacts ￮ Some governments have introduced carbon pricing mechanisms, which we believe can be an effective way to reduce GHG emissions
across the economy at the lowest overall cost to society.
￮ Shell's cost of compliance with the Emissions Trading Scheme (ETS) and related schemes was around $381 million in 2024, as
recognised in Shell's Consolidated Statement of Income for 2024. A further $3,565 million of costs in respect of emissions schemes
and related environmental programmes were incurred in respect of biofuels ($2,942 million) and renewable power ($623 million)
programmes (see Note 5 to the "Consolidated Financial Statements" on pages 266-267).
￮ Shell's annual carbon cost exposure (including ETS and related schemes) is expected to increase over the next decade because of
evolving carbon regulations, with the forecast annual cost exposure in 2025 estimated to be around $1 billion and around $5 billion
in 2034. This estimate is based on a forecast of Shell's equity share of emissions from operated and non-operated assets, and real-term
carbon cost estimates using the mid-price scenario (see Note 4 to the "Consolidated Financial Statements" on pages 255-265 for more
information) [A]. This exposure also takes into account the estimated impact of available CO2 free allowances as relevant to assets
based on their location [B].

Restrictions on use of hydrocarbons

￮ Governments may set regulatory frameworks in the future that could further restrict our exploration and production of hydrocarbons,
and introduce controls to limit the use of such products. Failure to replace proved reserves could result in an accelerated decrease
of future production, which could have a material adverse effect on our earnings, cash flows and financial condition.

Lack of net-zero-aligned global and national policies and frameworks

￮ The lack of net-zero-aligned global and national policies and frameworks increases the uncertainty around how carbon pricing and
other regulatory mechanisms will be implemented in the future. This makes it harder to determine the appropriate assumptions to
be taken into account in our financial planning and investment decision processes which could impair our ability to evaluate the
robustness of our plans and opportunities. Changing net-zero policies and regulations could also lead to impairments of our existing
oil and gas assets.

[A] Carbon cost estimates that include inflation, usually a yearly 2% inflation is applied.
[B] Free allowances are amounts of CO2 an asset is allowed to emit without paying the emissions trading scheme (ETS) price/tax.

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Transition risks continued

Description CR3 Climate-related societal risks (including litigation)
￮ As societal expectations develop around climate change, there is a potential impact on Shell's licence to operate, reputation, brand
and competitive position. This is likely to include litigation.

Relevant time short, medium and long

horizon

Potential material Decline in reputation, brand and licence to operate

impacts ￮ Societal expectations of businesses are increasing, with a focus on business ethics, quality of products, contribution to society, safety
and minimising damage to the environment. There is a focus on the role of the oil and gas sector in the context of climate change and
the energy transition. This could negatively affect our brand, reputation and licence to operate, which could limit our ability to deliver
our strategy, reduce consumer demand for our products, harm our ability to secure new resources and contracts, and restrict our ability
to access capital markets or attract employees.

Deteriorating relationships with key stakeholders

￮ Failure to decarbonise Shell's value chain in line with societal, governmental and investor expectations is a material risk to Shell's
reputation as a responsible energy company. The impact of this risk includes shareholder divestment, greater regulatory scrutiny and
potential asset closure resulting from public interest groups' protests.

Litigation
￮ There is an increasing risk to oil and gas companies from private (including non-governmental organisations) and governmental
lawsuits. If successful, these claims may have wide-ranging consequences, including forcing entities to hand over strategic autonomy in
part to regulators, divesting from hydrocarbon technologies, denying entities regulatory approvals and/or requiring payment of fines
or penalties or large compensation packages to plaintiffs.
￮ In some countries, governments, regulators, organisations and individuals have filed lawsuits of a wide variety, including seeking
to hold oil and gas companies liable for costs associated with climate change, or seeking court-ordered reductions in emissions,
challenging the regulatory approvals and operating licences, or challenging energy transition strategies and plans. While we believe
these lawsuits to be without merit, losing could have a material adverse effect on our earnings, cash flows and financial condition.
￮ In the Netherlands, in a case against Shell brought by a group of environmental NGOs and individual claimants (referred to herein as
"Milieudefensie"), the Hague District Court in 2021 found that while Shell was not acting unlawfully, Shell had the obligation to reduce
the aggregate annual volume of CO2 emissions of Shell operations and energy-carrying products sold across Scope 1, 2 and 3 by 45%
(net) by the end of 2030 relative to its 2019 emissions levels. For Scope 2 and 3, this was a significant best-efforts obligation. Shell
appealed that ruling. On November 12, 2024, the Hague Court of Appeal upheld Shell's appeal and dismissed the claim against
Shell. In doing so, the Court of Appeal annulled the earlier judgment of the District Court in its entirety with immediate effect. On
February 11, Milieudefensie filed an appeal to the Supreme Court of the Netherlands.
￮ We have also been subjected to climate activism which has caused disruptions to our operations and such disruptions could happen
again in the future.

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Physical risks
Description CR4 Climate-related physical risks
￮ The potential physical effects of changing climatic conditions could adversely affect our assets, operations, supply chains, employees
and markets.

Relevant time short, medium and long

horizon

Potential material Types of physical risk

impacts The impact of physical risks comes from both acute and chronic climate hazards. Acute hazards, such as flooding and droughts, wildfires
and more severe tropical storms, and chronic hazards, such as rising temperatures and rising sea levels, could potentially impact some
of our facilities, operations and supply chains. The frequency of these hazards and impacts is expected to increase in certain locations.
Extreme weather events, whether or not related to climate change, could have a negative impact on our earnings, cash flows and
financial condition. Mitigation of physical risks, whether or not related to climate change, is considered and embedded in the design
and construction of our projects, and/or operation of our assets to help minimise the risk of adverse incidents to our employees and
contractors, the communities where we operate, and our equipment.

Shell's assessment
￮ In 2023, we carried out a detailed review to assess the impact of a range of changing climatic conditions, including projected changes
in temperature, precipitation, wind and sea levels, across segments and geographies for our significant assets. We used IPCC climate
modelling data covering three exploratory climate scenarios (RCP2.6, RCP4.5 and RCP8.5 [A]) across the time horizons 2025, 2030
and 2050. These scenarios were selected to ensure a broad range of risks and uncertainties were assessed. There have been no
changes to the climate modelling data that would require a full update of the 2023 assessment. We have confirmed there are no
changes to the risk profile of our significant assets and accounted for portfolio changes.
￮ In the short to medium term, the risks identified were found to be related to factors that Shell is already aware of (whether or not
related to climate change) and that the assets are actively managing to mitigate, e.g. hurricane impacts on the US Gulf Coast, rising
air temperatures in the Middle East and water scarcity in Europe and Asia. As an example, in recent years the Rhine river in Europe has
seen historic lows during the summer months leading to challenges in the use of barges for transportation of our products. Dredging of
harbours and investment in shallower-draft barges have helped to mitigate the risk.
￮ In the long term, the results of the exercise indicated that while we have evaluated against current climate modelling projections and
our current asset portfolio, by 2050 the frequency and severity of the climate hazards may differ from current projections. The level of
predictability is such that the need for investment in climate adaptation measures at the assets is not immediate and the results mean
we are in a position to monitor the assets and determine whether there is any need for adaptation action, e.g. the impact of potential
water scarcity on various assets.
￮ Our testing to assess the potential impact of climate-related changes on our significant assets covers over 70% of the carrying value of
our physical assets as at December 31, 2023. Over 12% (based on the carrying value) of physical assets tested are considered to be
exposed to climate-related physical risks in the short to medium term which the assets are already actively managing to mitigate. In
addition, we reviewed significant acquisitions made in 2023 and 2024, none of which were found to have significant climate-related
physical risks in the short to medium term.
￮ Our business plan reflects the impact of mitigating actions in the short to medium term for the assets assessed. We will continue to
monitor and assess the future exposure of our assets in the longer term to changing climatic conditions to establish the need for any
further adaptation actions and related metrics.
￮ The impact of physical climate change on our operations is unlikely to be limited to the boundaries of our assets. For example, the
downstream transportation and distribution of our products from our own operations could potentially be exposed to climate-related
hazards that ultimately impact our operations. The overall impact, including how supply chains, resource availability and markets may
be affected, also needs to be considered for a holistic assessment of this risk. Our assets manage this risk as part of broad risk and
threat management processes as required by our SEAM Standards, part of the wider Shell Performance Framework.

[A] Representative Concentration Pathway (RCP) refers to the GHG concentration (not emissions) trajectory adopted by the IPCC. The pathways describe different climate change scenarios, all
of which are considered possible depending on the amount of GHG emitted in the years to come.

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Opportunities
Description CO1 Climate-related opportunities
￮ The transition to a low-carbon economy also brings significant opportunities for us to benefit from changing customer demands,
given our position as a leading global energy provider.

Relevant time short, medium and long

horizon

Potential material As the global energy mix changes, our current infrastructure, know-how and global footprint put us in an ideal position to service the
impacts changing energy demands of the market. Our global customer reach, our use of technology and innovation to develop the business
models and fuels of the future and the strength of our trading capabilities, coupled with our own production, will help us deliver affordable
and low-carbon solutions for our customers. Our research and development (R&D) activities are an important contributor to achieving our
net-zero emissions target. We believe we are the investment case and partner of choice through the energy transition. As we work to
deliver more value with less emissions we are focusing on:
LNG
￮ Demand for LNG is expected to grow. We are one of the world's largest suppliers of LNG, with around 40 million tonnes of equity
capacity. Gas is critical to the energy transition and plays an important role in enabling countries to replace coal-fired power
generation with a less carbon-intensive alternative, as on average, coal-to-gas switching reduces emissions by 50% when producing
electricity [A]. LNG also provides grid stability alongside wind and solar power in electricity generation. LNG is the lowest-carbon
marine fuel available at scale today and offers significant GHG emissions reductions compared with conventional fuels. Furthermore,
LNG offers a long-term decarbonisation pathway through bioLNG when the supply is scaled up. Shell has developed the world's
largest LNG fuelling network of ports and bunker vessels on key trading routes, enabling more customers to choose LNG. Beyond our
own production, we expect to continue to add scale and flexibility to our portfolio by buying LNG from others. Our LNG business will
remain a key priority for Shell, meeting continued strong demand especially in Asia where we send most of our shipments today.
Our integrated model is at the heart of LNG value creation, with our business spanning every stage of the LNG journey.

Biofuels
￮ We invest in biofuels where we see growing customer demand and where we can use the strength of our supply and trading positions.
Aviation and shipping remain some of the slower-to-decarbonise sectors and we expect that they will require low-carbon molecular
solutions, such as biofuels, at scale in the future. Shell is already one of the world's largest energy traders and blenders of biofuels,
selling significantly more low-carbon fuels than we produce. We expect to continue to grow both our own production and sales of
biofuels in the coming years. We are focusing on producing premium biofuels such as sustainable aviation fuel, renewable diesel and
renewable natural gas (RNG). We expect that these fuels will help to reduce emissions in commercial road transport. To support our
production of biofuels, we are investing in new feedstocks through investments and partnerships, while using the strength of our trading
business to expand sales beyond our production volumes. Through our Raízen joint venture in Brazil we are already the largest
producer of second-generation ethanol and the leading sugar-cane ethanol producer globally. To support growing demand for biofuels
this decade, we are developing more second-generation technologies. We are also developing technologies and feedstocks that aim
to allow continued and sustainable growth in biofuels, while minimising impacts on the environment and food supplies.

Integrated power
￮ Renewable power is expected to be critical for helping our commercial customers decarbonise and we will continue to grow our
integrated power business. We are making disciplined choices to create value from our portfolio, stepping back from activities that do
not fit our strategy or generate enough return. We aim to use the strength of our trading and optimisation capabilities to meet the
growing need for flexible power storage solutions such as batteries. We already have a significant presence in battery and storage
through our ventures programme and investments in research and development. We are focusing on selling power, including
renewable power, to business customers. We are also using renewable power to decarbonise our own operations. Over time, we
expect to use our renewable power capacity to produce low-carbon molecules, such as hydrogen.

Electric vehicle charging

￮ We are growing our electric vehicle charging business to support customers who choose to change from a petrol or diesel vehicle to an
electric one. We are focusing on offering our customers choices where we see increasing demand, such as in the fast-growing electric
mobility markets of China and Europe. We are focusing on public charging, rather than home charging, because we believe it will be
needed most by our customers. We have a major competitive advantage in terms of locations, as our global network of service stations
is one of the largest in the world. We have other competitive advantages, such as our convenience retail offering which allows us to
offer our customers coffee, food and other convenience items as they charge their cars.

Carbon capture and storage

￮ We are developing technologies related to carbon capture and storage (CCS) and carbon removals, which are necessary to reduce
emissions where there are few low-carbon alternatives. For the rest of this decade, we expect to direct most of our investments in CCS
towards decarbonising our own operations. We are also looking to turn this into a profitable business for Shell by helping other
companies decarbonise their operations in the future. However, in many countries CCS still lacks a clear business model. To address
this challenge, Shell advocates policy mechanisms to enable CCS, and supports industry partnerships dedicated to the growth of
commercially viable CCS projects.

[A] Source "The Role of Gas in Today's Energy Transitions", IEA 2019.

84 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Impact of climate-related risks and opportunities on

Shell's businesses, strategy and financial planning Carbon Management Framework (CMF)
The transformation of the energy system to net-zero emissions will Shell's CMF provides the structure and processes to drive
require simultaneous action in three areas: delivery of Group carbon targets. The CMF seeks to manage
￮ an unprecedented improvement in the efficiency with which energy and reduce emissions in a manner that is similar to how we use
is used; our financial framework. Carbon budgets are used as input and
￮ a sharp reduction in the carbon intensity of the energy mix; and guidance for the annual business plan process. They act as an
￮ the mitigation of residual emissions through the use of technology effective mechanism to maintain absolute emissions below
and natural sinks. a capped level and help drive a change in product mix. The
carbon budgets are allocated to the businesses and enable
While it is difficult to predict the exact combination of actions that trade-offs between emitting carbon and generating shareholder
will deliver the net-zero goal, scenarios help us to consider the value to occur within those budgets. The CMF informs portfolio
variables and the potential direction and pace of the transition needed. decisions and supports delivery of our decarbonisation targets.
Scenarios are not intended to be predictions of likely future events or
outcomes and, therefore, are not the basis for Shell's Operating Plans For the 2024 Operating Plan cycle, our net carbon intensity
and financial statements. (NCI) targets and 2030 oil products emissions ambition were
translated into relevant budgets or targets for each business
We have been developing scenarios within Shell for almost 60 years, (see Greenhouse gas and energy management below). These
helping Shell leaders to explore ways forward and make better budgets and targets were used by each business to optimise
decisions. Shell scenarios are designed to stretch management's their operating plans. Performance against the annual NCI
thinking when it comes to considering events that may be possible, target, including the relative mix of products, is monitored and
even if remotely. Scenarios help management to consider options and reviewed by the EC on a quarterly basis, facilitating corrective
make choices in times of uncertainty and transition as we grapple with action if required.
tough energy and environmental issues. They are aligned to different
energy transition pathways and help in decision-making by guiding Examples of how our decarbonisation targets are taken into
the identification of a wide range of risks and opportunities. account in fundamental decisions across the organisation
include the use of carbon metrics (profitability per unit of carbon
Different socio-economic and technological parameters are used to emitted), a key parameter considered in decision-making and
construct these scenarios, such as: when comparing different growth opportunities against each
￮ sectoral and regional energy demand; other within the various businesses.
￮ future trajectory of oil consumption and demand for natural gas;
￮ renewable electricity demand and the pace of the electrification
of the global energy system;
￮ supply of solar and wind energy; Greenhouse gas and energy management
￮ pace of uptake of electric vehicles; Each Shell entity and Shell-operated venture is responsible
￮ demand for biofuels; for the development of its Greenhouse Gas (GHG) Emissions
￮ growth of the hydrogen economy; and Energy Management Plan. Plans are in place for all
￮ level of CCS available; significant assets.
￮ deployment of lower-carbon energy technologies; and
￮ global trade of oil and gas. Our Greenhouse Gas and Energy Management process sets
out Shell's requirements for GHG reduction opportunities and
Management consideration of different climate change outcomes portfolio choices to meet our carbon budgets and achieve
informs a range of areas, including, but not limited to, the setting of the our decarbonisation targets. These requirements allocate
long-term strategy, business planning, and investment and divestment accountabilities for GHG and energy management within
decisions. The outcomes considered by management vary in relation businesses, assets and projects, including responsibility for
to the extent and pace of the energy transition. analysing our emissions, identifying improvement opportunities,
and forecasting future performance. These requirements are
applied to capital project delivery and through the asset-level
annual business planning process, ensuring it is reflected in both
opportunity realisation and strategic asset management planning.

A key aspect of the GHG and Energy Management process

is the development of an energy efficiency and greenhouse gas
reduction opportunity curve, economically assessed against the
current and future costs of carbon. This information provides the
basis for forecasts of absolute GHG emissions and associated
intensities at the asset and project level. These forecasts are then
aggregated to inform decisions on potential decarbonisation
opportunities across our businesses.

The Shell Global Process Council for GHG and Energy

Management, led by the Global Process Owner for GHG and
including business and functional experts, meets regularly to
evaluate opportunities for the ongoing improvement of
processes, tools, communications, and capabilities needed
within the businesses to achieve our decarbonisation aspirations.

85 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Impact on strategic planning

The application of scenario analysis informs our assessment of the Our strategy and national net-zero commitments
impact of a wide range of risks and opportunities, including climate- In accordance with UK Listing Rule 6.6.12G, we have taken into
change-related issues, on our strategy and business planning at the account the extent to which country-level net-zero commitments
Group and business levels. At the Group level, the potential impacts of have been considered in developing our energy transition plans.
the energy transition on our business model are discussed and assessed
by the Board and the EC as part of the annual strategic and business Our strategy aims to deliver a net-zero emissions energy
planning cycle. This assessment allows us to challenge accepted ways business by 2050. The pace of the energy transition will be
of thinking, identify material risks and opportunities, and identify key heavily influenced by government policy, creating a strong
dilemmas and trade-offs. country and regional dimension in seeking to deliver the goals
of the Paris Agreement. Our commitment is a global one and,
as such, we look to deliver our strategy through a global lens.
Key financial and non-financial components of
business planning
We seek to translate our energy transition plans into specific
The Board approves our annual business plan. The plan
targets and plans at a business segment level. We also seek to
contains operational and financial metrics, and its objective
take capital deployment and portfolio decisions in the context
is to drive the delivery of our strategy.
of the integrated nature of our global operations. However,
we continue to recognise the importance of engagement and
Decarbonisation targets are key to our business planning
collaboration in delivering the fundamental changes to the
process. Each business owner offers viable Scope 1, 2 and 3
energy system that are required. This includes supporting and
reduction opportunities as part of this process, in line with the
advocating for policies that aim to reduce carbon emissions
CMF, see "Our approach to Sustainability" on page 127).
and working with governments and other stakeholders in the
development of policies that support the transition to a low-
The business plan is underpinned by assumptions about internal
carbon energy system. As national transition plans develop,
and external parameters and includes:
consideration will be given to the impact on our operations
￮ commodity prices;
and the associated implications for our energy transition plans.
￮ refining margins;
￮ production levels and product demand;
￮ exchange rates;
￮ future carbon costs; Resilience of Shell's strategy to different climate-related
￮ the schedules of capital investment programmes; and scenarios
￮ risks and opportunities that may have material impacts on Shell's financial strength and access to capital give us the
free cash flow. ability to reshape our portfolio as the energy system transforms.
They also allow us to withstand volatility in oil and gas markets.
These assumptions are developed with input from our scenarios
and internal estimates and outlooks. The level of uncertainty As we work towards net-zero emissions, we continue to exercise focus
around these assumptions increases over longer time horizons. and discipline to optimise our capital allocation and operational
expenditure, balancing energy security and demand, as well as internal
and external transition considerations and opportunities. We will make
Impact on business and financial planning disciplined choices about where we can create the most value for our
There is no single scenario that underpins Shell's business and investors and customers through the energy transition.
financial planning. Our scenarios help develop our future oil and gas
pricing outlooks. These outlooks take account of factors relating to the Investing in the energy transition
energy transition, such as potential changes in supply and demand (see
details of scenario parameters above). The low-, mid- and high-pricing Cash capital expenditure evolution by segment [A]
outlooks are prepared by a team of experts, reviewed by the EC and
approved by the CEO and CFO. The mid-price outlook represents
management's reasonable best estimate and is the basis for Shell's
financial statements, Operating Plans and impairment testing.

Shell's Operating Plan reflects Shell's strategy. We will continue to

update our Operating Plan, price outlooks and assumptions as we
move towards net-zero emissions by 2050.

As described in "Climate-related risks and opportunities identified

by Shell over the short, medium and long term" on page 80, the
low-pricing outlooks could result in increased commercial, regulatory
and societal risks. The prioritisation of these risks is described in "Risk
management" on page 134. Given our net-zero target, the use of low-
pricing outlooks is part of our resilience testing and resulting actions.
[A] 2022 and 2023 for Marketing and Chemicals and Products revised to conform with
reporting segment changes applicable from 2024.

86 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Cash capital expenditure monitors investing activities on a cash basis, Total cash capital expenditure was lower in 2024 compared with
excluding items such as lease additions which do not necessarily result 2023 driven by project prioritisation and cost optimisation. Movements
in cash outflows in the period. The measure comprises the following by category in 2024 versus 2023 were driven by:
lines from the Consolidated Statement of Cash Flows: Capital ￮ Non-energy products: comparable year-on-year.
expenditure, Investments in joint ventures and associates and ￮ Low-carbon energy solutions: decreased by $3.2 billion compared
Investments in equity securities. The reconciliation of "Capital with 2023. This reflects lower spend on renewable power
expenditure" to "Cash capital expenditure" is presented in Note 7 generation projects and lower spend in the Marketing business,
to the "Consolidated Financial Statements" on pages 268-273. when compared with the significant inorganic growth investments in
2023 (the acquisition of Nature Energy for nearly $2 billion and the
Investing in the energy transition: Total cash capital roll-out of electric vehicle charging).
expenditure ￮ LNG, gas and power marketing and trading: 25% higher spend in
2024 compared with 2023 due to investments in LNG infrastructure
projects and Renewable and Energy Solutions (two-unit combined-
Total cash capital expenditure* of $21.1 billion in 2024 cycle gas turbine power plant).
￮ Oil, oil products and other: 8% lower spend compared with
Non-energy Low-carbon 2023 due to reductions in Marketing and Upstream (in deep water
products [A] energy solutions [B] assets, including in the Gulf of America, partly offset by higher spend
$2.2 billion $2.4 billion in Nigeria and the UK).

Cash capital expenditure* by segment for 2025 is expected to be

around $7 billion for Upstream ($7.9 billion in 2024), around $6
LNG, gas and power Oil, oil products
billion for Integrated Gas ($4.8 billion in 2024), in the range of $2-3
marketing and trading [C] and other [D]
billion for Marketing ($2.4 billion in 2024), around $3 billion for
$5.0 billion $11.5 billion
Chemicals and Products ($3.3 billion in 2024), in the range of $2-3
billion for Renewables and Energy Solutions ($2.5 billion in 2024).

[A] Products for which usage does not cause Scope 3, Category 11 emissions: Lubricants,
Chemicals, Convenience Retailing, Agriculture and Forestry, Construction and Road.
[B] E-Mobility and Electric Vehicle Charging Services, Low-Carbon Fuels, Renewable Power
Generation, Environmental Solutions, Hydrogen, CCS. We define low-carbon energy
products as those that have an average carbon intensity that is lower than conventional
hydrocarbon products, assessed on a life-cycle basis.
[C] LNG Production & Trading, Gas and Power Trading, and Energy Marketing.
[D] Upstream segment, GTL, Refining and Trading, Marketing fuel and hydrocarbon sales,
Shell Ventures, Corporate segment.

Energy transition: Total cash capital expenditure* by segment

$ billion
Classification [1] Segment 2024 2023 2022

Non-energy products [A] Marketing 0.6 0.9 1.5

2.2 2.3 3.9
Chemicals and Products 1.6 1.4 2.4

Low-carbon energy solutions [B] Marketing 0.8 3.3 1.4

2.4 5.6 4.3
Renewables and Energy Solutions 1.6 2.3 2.9

LNG, gas and power Integrated Gas 4.2 3.7 3.8

marketing and trading [C] 5.0 4.0 4.2
Renewables and Energy Solutions 0.8 0.3 0.4

Oil, oil products and other [D] Integrated Gas 0.6 0.5 0.5
Upstream 7.9 8.3 8.1
Marketing 1.0 1.6 2.1
11.5 12.5 12.5
Chemicals and Products 1.8 1.6 1.3
Renewables and Energy Solutions 0.1 0.1 0.2
Corporate 0.1 0.4 0.3
Total 21.1 21.1 24.4 24.4 24.8 24.8

[1] See the corresponding footnotes under the table "Investing in the energy transition: Total cash capital expenditure" on page 87 for more details.
* Non-GAAP measure (see page 445).

87 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Operating expenses evolution by segment [A] Energy transition: Total operating expenses

Total operating expenses* of $36.9 billion in 2024

Non-energy Low-carbon
products [A] energy solutions [B]
$7.4 billion $1.9 billion

LNG, gas and power Oil, oil products

marketing and trading [C] and other [D]
$5.4 billion $22.2 billion

[A] Products for which usage does not cause Scope 3, Category 11 emissions: Lubricants,
[A] 2022 and 2023 for Marketing and Chemicals and Products revised to conform with Chemicals, Convenience Retailing, Agriculture & Forestry, Construction & Road.
reporting segment changes applicable from 2024. [B] E-Mobility and Electric Vehicle Charging Services, Low-Carbon Fuels, Renewable Power
Generation, Environmental Solutions, Hydrogen, CCS. We define low-carbon energy
products as those that have an average carbon intensity that is lower than conventional
Operating expenses is a measure of Shell's cost management hydrocarbon products, assessed on a life-cycle basis.
performance, comprising the following items from the "Consolidated [C] LNG Production & Trading, Gas & Power Trading, and Energy Marketing.
[D] Upstream segment, GTL, Refining & Trading, Marketing fuel and hydrocarbon sales,
Statement of Income": production and manufacturing expenses; Shell Ventures, Corporate segment.
selling, distribution and administrative expenses; and research and
development expenses. See Note 7 to the "Consolidated Financial Total operating expenses* by segment for 2025 are expected to be
Statements" for reconciliation of total operating expenses. approximately $9 billion for Upstream (2024: $9.8 billion), $5 billion
for Integrated Gas (2024: $4.4billion), $11 billion for Marketing
Total operating expenses* in 2024 were $36.9 billion with a focus on (2024: $10.7 billion), $8 billion for Chemicals and Products (2024:
structural cost savings and improved operational efficiency, including $8.4 billion), and $3 billion for Renewables and Energy Solutions
lower maintenance cost. (2024: 2.9 billion).

Energy transition: Total operating expenses* by segment

$ billion
Classification [1] Segment 2024 2023 2022

Non-energy products [A] Marketing 3.9 4.1 3.9

7.4 8.1 7.5
Chemicals and Products 3.5 4.0 3.6

Low-carbon energy solutions [B] Marketing 0.7 0.9 0.5

1.9 2.2 1.5
Renewables and Energy Solutions 1.2 1.3 1.0

LNG, gas and power Integrated Gas 3.7 4.0 4.4

marketing and trading [C] 5.4 6.5 6.9
Renewables and Energy Solutions 1.7 2.5 2.5

Oil, oil products and other [D] Integrated Gas 0.8 0.8 0.8
Upstream 9.8 9.8 10.3
Marketing 6.0 6.2 5.8
22.2 23.2 23.6
Chemicals and Products 4.9 5.6 6.0
Renewables and Energy Solutions 0.0 0.0 0.0
Corporate 0.7 0.8 0.7
Total 36.9 36.9 40.0 40.0 39.5 39.5

[1] See the footnotes under the table "Energy transition: Total operating expenses" on page 88 for more details.
* Non-GAAP measure (see page 445).

Key aspects of Shell's financial resilience in the context of climate- recoverability of certain assets recognised in the "Consolidated
related impacts are assessed and described in more detail in Note 4 Balance Sheet" as at December 31, 2024.
to the "Consolidated Financial Statements". This describes how Shell
has considered climate-related impacts in key areas of the financial As there is no single scenario that underpins our Operating Plans,
statements and how this translates into the valuation of assets and sensitivity analysis has been conducted using a range of key assumptions
measurement of liabilities. Shell's financial statements are based on to test the resilience of our asset base. This includes (but is not limited to):
reasonable and supportable assumptions that represent management's ￮ sensitivity analysis on asset carrying values using commodity price
best estimate of the range of economic conditions that may exist in outlooks from external, and often normative, climate change scenarios;
the foreseeable future. ￮ carbon price sensitivities;
￮ chemical and refining margins price sensitivities; and
Sensitivity analysis using external, and often normative, climate change ￮ discount rate sensitivities.
scenarios has been performed for the period covering asset life cycles.
If these different price outlooks were used, this would impact the

88 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Commodity price sensitivities

Oil and gas prices are one of the key assumptions that underpin Shell's Carbon pricing
financial statements, with the mid-price outlook informed by Shell's We consider the potential costs associated with operational
scenario planning representing management's reasonable best GHG emissions when we assess the resilience of projects. For
estimate. Price outlooks reflect a broad range of factors, including, each region, we have developed short-, medium- and long-term
but not limited to, future supply and demand, and the pace of growth estimates of future costs of carbon. These are reviewed and
of low-carbon solutions. The scenarios have been selected to illustrate updated annually. See Note 4 to the "Consolidated Financial
the resilience of the asset base under a range of possible outcomes, Statements" for further details on our regional cost of carbon
including the price implications arising from the ambitious IEA Net estimates.
Zero Emissions scenario which provides a potential path for the
global energy system (IEA NZE50) to achieve net-zero emissions Up to 2030, costs for carbon emissions estimates are largely
by 2050. Sensitivities of asset carrying values to prices are under policy driven through emissions trading schemes or taxation
the assumption that all other factors in the models used to calculate which is levied by governments and which varies significantly
impacts remain unchanged. on a country-by-country basis. Beyond 2030, where policy
predictions are more challenging, the costs for carbon emissions
Sensitivity analysis has been performed using price outlooks from: are estimated based on the expected costs of abatement
technologies required for 2050. The estimated cost is trending
1. Average prices from three 1.5-2°C external climate change towards $50 to $230 per tonne (RT24), depending on the
scenarios: in view of the broad range of price outlooks across the country, in 2050.
various scenarios, the average of three external price outlooks was
taken from IHS Markit/ACCS 2024; Woodmac WM AET-1.5 See "The resilience of Shell's strategy" on page 86 for more
degree; and IEA NZE 2050 (IEA NZE50). information on how carbon costs impact our resilience to
climate-related risks, including sensitivity analysis.
Applying this priceline to Integrated Gas assets of $74 billion and
Upstream assets of $77 billion as at December 31, 2024, shows See Shell's "Climate and Energy Transition Lobbying Report
recoverable amounts that are $11-15 billion and $1-3 billion lower, 2024", which will be published in May 2025, for more
respectively, than the carrying values as at December 31, 2024. information on Shell's advocacy across a range of issues
including carbon pricing.
2. Hybrid Shell Plan and IEA NZE50: for this Shell's mid-price outlook is
applied for the next 10 years. Because of greater uncertainty, the IEA
normative Net Zero Emissions scenario is applied for the period after Carbon pricing and discount rate sensitivities
10 years. This gives less weight to the price-risk uncertainty in the first The risk of stranded assets may increase in a higher-carbon-price
10 years reflected in the Operating Plan period and applies more risk scenario. Sensitivities of our asset carrying values to carbon prices
to the more uncertain subsequent periods. have been based on the IEA NZE50 scenario to illustrate the resilience
of asset carrying values to higher long-term carbon prices than those
Applying this priceline to Integrated Gas assets of $74 billion and included in the Shell mid-price outlook.
Upstream assets of $77 billion as at December 31, 2024, shows
recoverable amounts that are $7--10 billion and up to $1 billion Applying the IEA NZE50 carbon price scenario to Integrated Gas
lower, respectively, than the carrying values as at December 31, assets of $74 billion and Upstream assets of $77 billion, up to the end
2024. of life of these assets, shows recoverable amounts that are $1-2 billion
and up to $1 billion lower, respectively, than the carrying values as at
3. A 1.5°C scenario, derived from IEA NZE50: this priceline applies the December 31, 2024.
IEA normative Net Zero Emissions scenario over the whole period
under review and reflects the sensitivity to a pure net-zero emissions Applying the IEA NZE50 carbon price scenario to Chemicals and
scenario from the IEA. Products assets of $38 billion shows recoverable amounts that are up
to $1-2 billion lower than the carrying values as at December 31, 2024.
Applying this priceline to Integrated Gas assets of $74 billion and For Chemicals and Products, increased carbon costs could potentially
Upstream assets of $77 billion as at December 31, 2024, shows be recovered partially through increased product sales prices.
recoverable amounts that are $21-27 billion and $5-7 billion lower,
respectively, than the carrying values as at December 31, 2024. See "Carbon pricing" above for more information on our carbon
price assumptions.
In addition, further sensitivities are provided of -10% or +10% to Shell's
mid-price outlook, as an average percentage over the full period.
A change of -10% or +10% to the mid-price outlook, as an average
percentage over the full period, would result in around $5-9 billion
impairment or some $2-5 billion impairment reversal, respectively,
in Integrated Gas and Upstream as at December 31, 2024.

89 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

The discount rate applied for impairment testing is based on a ￮ We are progressing the repurposing of our energy and chemical
nominal post-tax weighted average cost of capital (WACC) and parks; these key focused assets allow us to underpin our
is determined at 7.5%, except for power activities in the Renewables hydrocarbon energy sales and the sales of lower carbon energy
and Energy Solutions segment where 6% is applied. The discount rate products. Our energy transition plans for this decade across our
includes generic systematic risk for energy transition risk. In addition, Downstream, Renewables and Energy Solutions business are focused
cash flow projections applied in individual assets include specific asset on: growing our electric vehicle charging business; investing in
risks, including risk of transition. An increase in generic systematic biofuels; continuing to grow our integrated power positions, and
energy transition risk could lead to a higher WACC and consequently developing technologies related to CCS and carbon removals.
to a higher discount rate to be applied in impairment testing. We have
used a 1% shift in discount rate for sensitivity analysis purposes as See "Outlook" on page 16.
an indicator of the resilience of our asset base to incremental
increases in our cost of capital.
Our research and development (R&D) activities are an important
An increase of the WACC of 1% under the assumption that all other contributor to achieving our net-zero emissions target. They are an
factors in the models used to calculate recoverability of carrying values important way to address the technology risk as mentioned in
remain unchanged would lead to a change in the carrying value of "Transition risks" on page 81 and "Transition opportunities" on page 84.
$1-3 billion for Integrated Gas and Upstream and no significant
impairment in other segments. In 2024, our R&D expenditure on projects that contributed to
decarbonisation was around $497 million, representing about
See Note 4 to the "Consolidated Financial Statements" on pages 255-265 for further 45% of our total R&D spend, compared with around 49% in 2023.
information on climate-related impacts in key areas of the financial statements. This includes expenditure on reducing GHG emissions:
￮ from our own operations, for example, by improving energy
efficiency and electrification;
Delivering progress in the energy transition ￮ from the fuels and other products we sell to our customers - for
To ensure the resilience of our strategy, our responses to the risks example, biofuels, synthetic fuels and products made from low-
and opportunities identified are: carbon electricity, and hydrogen produced using renewable sources;
￮ delivery through our integrated business model; ￮ by carbon capture, utilisation and storage applied to hydrogen
￮ decarbonisation of our energy value chains and operations; and production from natural gas and other carbon emissions;
￮ a focus on demand-driven decarbonisation – recognising that ￮ by researching nature-based solutions to offset emissions; and
we need to work with our customers to identify low-carbon energy ￮ for our customers, through renewable power generation, storage,
solutions for their energy demands in the sectors where we have e-mobility and other electrification solutions.
competitive advantages.
Examples of R&D areas other than decarbonisation include safety,
Our integrated approach allows us to withstand volatility in oil and performance products, such as lubricants and polymers, automation
gas markets. Our financial framework aims to enhance shareholder and artificial intelligence.
distributions, maintain discipline in capital allocation and targets a
strong credit investment grade rating. Decarbonising our value chains and operations
￮ In Integrated Gas, we are growing our world-leading liquefied We seek to base the decarbonisation of our value chains and
natural gas (LNG) business. We plan to grow LNG sales by 4-5% a operations on an understanding of the decarbonisation strategies
year through to 2030. LNG provides energy security and flexibility and plans of our customers and users of our energy products.
because it can be easily transported to places where it is needed We are focused on decarbonising our own operations by:
most. Gas is a critical fuel in the energy transition and plays an ￮ making portfolio changes such as acquisitions and investments in
important role as a lower-carbon alternative to coal for industry, low-carbon intensity projects, decommissioning plants, divesting
and provides grid stability alongside wind and solar power in assets, while sustaining our oil production with increasingly lower
electricity generation. carbon intensity;
￮ In Upstream, we continue to focus on more value and less emissions. ￮ progressing the repurposing of our energy and chemicals parks;
The oil we are producing will increasingly come from our world-class ￮ improving the energy efficiency of our operations;
deep-water business. Through innovative designs, our deep-water ￮ using more renewable electricity to power our operations; and
platforms are producing higher-margin and lower-carbon barrels. As ￮ developing CCS for some of our facilities.
we work towards net-zero emissions, we will continue to approach
capital and carbon allocation with discipline and focus. If required, we may choose to use high-quality carbon credits to offset
￮ In Downstream, Renewables and Energy Solutions, we are making any remaining emissions from our operations, in line with the carbon
clear choices and changes to enable this business to thrive through mitigation hierarchy of avoid, reduce and compensate or to meet
the energy transition. We are focusing on developing low-carbon local regulatory requirements.
energy and solutions where we have competitive advantages and
are starting to see increasing demand. We are focusing on value
over volume across all our businesses in Downstream, Renewables
and Energy Solutions, while driving down our emissions and helping
to drive down our customers' emissions.

90 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

We have set an interim target to achieve a 50% reduction in absolute

Scope 1 and 2 emissions under our operational control by 2030 on a
net basis, when compared with 2016.

We set a target to eliminate routine flaring from our upstream-operated

assets by 2025 [A]. With effect from January 1, 2025, SPDC has
ceased routine flaring of associated gas, with the completion of
essential gas capture projects and the shut-in of remaining facilities that
do not yet meet the applicable emissions standards. We have therefore
met our target to eliminate routine flaring from our upstream-operated
assets by 2025 as of this date. We also aim to maintain methane
emissions intensity for operated oil and gas assets below 0.2% and
achieve near-zero methane emissions intensity by 2030.
[A] This target was subject to the completion of the sale of The Shell Petroleum Development
Company of Nigeria Limited (SPDC). As detailed elsewhere in this report, on March 13,
2025, Shell completed the sale of SPDC to Renaissance.

See "Working to reduce our absolute Scope 1 and 2 emissions" on page 103.

Supporting our customers in achieving net-zero emissions

The transport sector is by far the largest market for our oil products. We
are building on our customer relationships and expertise to help drive
the decarbonisation of passenger cars, heavy-duty trucks, planes and
ships. Changes to the supply of energy products and decarbonising the
energy system require structural changes in the end-use of energy.

This requires energy users to improve, update or replace equipment

so that they can use carbon-based energy more efficiently, or switch
to low- and zero-carbon energy. For example, replacing internal
combustion engine vehicles with electric vehicles, converting heavy-
duty transport to biofuels such as renewable diesel, and, in the future,
hydrogen and its derivatives.

Such structural changes are expected to help to trigger transitions

along the supply chain of individual sectors and across sectors,
including the production of energy and emissions over time. The IEA
estimates that these changes in the end use of energy will require
substantial investment.

The World Energy Outlook 2024 report by the IEA includes an

estimate that by 2035 for every one US dollar spent on fossil fuels, a
further $20 will need to be spent on clean energy (low-emissions fuels,
and energy-efficient and low-emissions power) under the NZE50
Scenario.

We are seeking and will continue to seek to change the mix of energy
products we sell to our customers as their needs for energy change.
Emissions resulting from customer use of our energy products make up
a large proportion of Shell's reported emissions. We believe we can
make the greatest contribution to the energy transition by helping to
enable our customers to switch to low-carbon energy products and
services. We are working to:
￮ develop low- and zero-carbon alternatives to traditional fuel,
including biofuels, and other low- and zero-carbon gases;
￮ provide more renewable power solutions to customers by growing
our portfolio in select markets;
￮ work with customers across different sectors to help them
decarbonise their use of energy, for example by substituting the
use of coal with LNG; and
￮ address any remaining emissions from conventional fuels with
solutions such as CCS and high-quality carbon credits.

91 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Energy transition in action - selection of portfolio changes and actions in 2024

Reducing emissions from the products we sell Rotterdam-Singapore Green and Digital Shipping Corridor
By the end of 2024, the number of Shell-branded electric vehicle (GDSC) partners conducted a successful pilot for the bunkering
charge points was almost 73,000 compared with 54,000 in 2023. of mass-balanced liquefied bio-methane (LBM) at the Port of
We reached our goal of installing 70,000 public electric vehicle Rotterdam in October 2024. A total of 100 tonnes of mass-
charge points globally by 2025 one year ahead of schedule. balanced LBM was supplied by Shell to CMA CGM's liquefied
natural gas-powered.
Shell and our non-operated joint venture Raízen (Shell interest
44%) are, together, one of the world's largest blenders and In December 2024, a consortium led by Eku Energy and Shell
distributors of biofuels. In 2024, Raízen commissioned the second Energy successfully completed the Rangebank Battery Energy
and third of eight world-scale second-generation biofuel plants, Storage System (BESS) in Melbourne's Rangebank Business Park,
which it aims to build in Brazil, and its first biomethane plant to marking the second-largest battery storage project in Victoria.
produce RNG made from waste in sugar ethanol production. With a capacity of 200 MW and 400 MWh of storage, the
facility can power up to 80,000 homes.
In March 2024, Hollandse Kust Noord, our offshore wind park
in the Netherlands (Shell interest 79.9%), achieved commercial Reducing emissions from our own operations
operations. In January 2024, we announced our investment decision to
convert the hydrocracker at our Energy and Chemicals Park
In March 2024, we started operations at Shell Downstream Bovarius, Rheinland in Germany into a unit that will produce premium base
which is one of two facilities at the Bettencourt Dairies in Wendell, oils. The hydrocracker at the Wesseling site near Cologne will stop
Idaho, USA, where we are converting dairy manure to RNG. Bovarius processing crude oil into petrol, jet fuel and diesel in 2025. The
is expected to produce around 400,000 MMBtu a year of RNG. The planned changes are expected to reduce Shell's Scope 1 and 2
second facility, Shell Downstream Friesian, is expected to produce carbon emissions by around 620,000 tonnes a year.
around 350,000 MMBtu a year of RNG and operations are expected
to start in 2025. In May 2024, the Petrobras-operated Atapu consortium (Shell
interest 16.7%) announced a final investment decision (FID) for the
In September 2024, our Northern Lights joint venture (Shell interest Atapu-2 project. The new unit is expected to feature all-electric
33.3%) with Equinor and TotalEnergies completed the onshore and capability, aimed at lowering carbon intensity for production
offshore facilities for the world's first carbon transport and storage processes.
project in Norway. The first shipments are expected in 2025.
Northern Lights has the capacity to store around 1.5 million tonnes In June 2024, we took an FID for Polaris, a carbon capture project
of CO2 per year. at the Shell Energy and Chemicals Park Scotford in Alberta,
Canada. Polaris is designed to capture approximately 650,000
In April 2024, we opened our bioLNG liquefaction plant at the tonnes of CO2 annually from the Shell-owned Scotford refinery
Shell Energy and Chemicals Park Rheinland. This can produce and chemicals complex.
100,000 tonnes of bioLNG per annum, which will help around
5,000 LNG trucks a year reduce their carbon emissions. We also took an FID to proceed with the Atlas Carbon Storage
Hub which will store CO2 captured by the Polaris project. Polaris
In July 2024, we announced that we had paused on-site and Atlas will build on the success of the Quest carbon capture
construction work at the biofuels facility at the Shell Energy and and storage (CCS) facility at Scotford, which has safely captured
Chemicals Park Rotterdam in the Netherlands to assess the most and stored more than nine million tonnes of CO2 since 2015 that
commercial way forward for the project. would otherwise have been released into the atmosphere.

Nature Energy is one of Europe's largest producers of RNG. In In July 2024, we signed an agreement to invest in the Abu Dhabi
2024, Nature Energy opened its first biogas plant in France. The National Oil Company's (ADNOC) Ruwais LNG project through
Sécalia plant is operated in partnership with the Dijon Céréales a 10% participating interest. The deal is still subject to completion.
consortium of 150 farmers. It is France's largest renewable gas The Ruwais LNG facility is set to have an electric-powered
plant with annual production of 230 GWh of biogas. Together liquefaction system and will utilise access to a renewable power
with its partners, Nature Energy also owns and operates 13 biogas supply. This design supports lower operational emissions compared
plants in Denmark and one in the Netherlands. to traditional gas-powered LNG facilities.

In October 2024, we announced the acquisition of RISEC In July 2024, we took the final investment decision to build
Holdings, LLC (RISEC), which owns a 609-megawatt (MW) two- REFHYNE II, a 100 MW electrolyser to produce renewable
unit combined-cycle gas turbine power plant in Rhode Island, USA. hydrogen, in Germany. We plan to use this hydrogen to partially
RISEC's combined-cycle gas turbine power plant supplies power to decarbonise the Shell Energy and Chemicals Park Rheinland.
the ISO New England power market, where demand is expected
to increase due to growing decarbonisation efforts in sectors such In October 2024, Shell NBS formed a joint venture with New
as home heating and transport. Forests Company: Tausi Forests Limited. Operating in Tanzania
and Uganda, Tausi is dedicated to establishing certified
commercial plantations and to initiating afforestation projects,
creating reforestation and restoration carbon credits, and
enhancing climate resilience, community well-being, and
biodiversity in the areas that it operates in.

92 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Our climate-related metrics and targets

This section describes our performance against our climate-related targets and ambition, including those reflected in the remuneration of senior
management and employees.

[A] This target was subject to the completion of the sale of The Shell Petroleum Development Company of Nigeria Limited (SPDC). With effect from January 1, 2025, SPDC ceased routine flaring.
Our target is therefore met. As detailed elsewhere in this report, on March 13, 2025, Shell completed the sale of SPDC to Renaissance.
[B] On an intensity basis. Methane intensity is measured separately for oil and gas assets with marketed gas (gas, LNG and GTL available for sale) and assets without marketed gas (oil and gas
assets where gas is reinjected).
[C] Average intensity, weighted by sales volume, of the energy products we sell, on an equity boundary, net of carbon credits. Estimated total GHG emissions included in NCI reflect well-to-wheel
emissions associated with energy products sold by Shell. This includes the well-to-tank emissions associated with the manufacturing of energy products by others that are sold by Shell. In
2024, we revised the 2016 baseline NCI values and other historical NCI values. As a result, the percentage reduction achieved in 2023 was revised from 6.3% to 7.7%. (See "NCI baseline
and restatement policy" on page 98).
[D] In March 2024, we set an ambition to reduce absolute emissions related to the use of our oil products by 15–20% by 2030, compared with 2021 (Scope 3 Category 11). Customer emissions
from the use of our oil products (Scope 3, Category 11) were 517 million tonnes carbon dioxide equivalent (CO2e) in 2023 and 569 million tonnes CO2e in 2021.

93 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Metrics used by Shell to assess climate-related risks In 2024, carbon credits were used for compliance with the
and opportunities in line with our strategy and risk requirements of the Australian Safeguard Mechanism, resulting in an
management process offset of 0.1 million tonnes CO2e related to Scope 1 emissions under
This section sets out the key metrics we use to track progress against our operational control.
our energy transition targets and ambition. These metrics are as
follows. Scope 1 and 2 emissions [D, E]
￮ Metrics related to our own operations:
– absolute Scope 1 and 2 emissions under operational control, million tonnes of CO2e
with a 2016 baseline; and
(operational control boundary) 2024 2023 2022 2016
– routine flaring and methane emissions intensity under our
operational control. Scope 1 emissions (gross) [A] 50 50 51 72
￮ Metrics related to emissions from the products we sell: Scope 2 emissions (gross) [B] 8 7 7 11
– the NCI of the energy products we sell (equity basis), with a 2016 Carbon credits [C] 0.1 — — —
baseline; and
Total Scope 1 and 2 emissions (net) [F] 58 57 58 83
– customer emissions from the use of our oil products (Scope 3,
Category 11, equity basis), with a 2021 baseline. [A] Total direct GHG emissions from assets and activities under our operational control. It
￮ Performance indicators for the energy transition performance includes emissions from production of energy and non-energy products. Scope 1 emissions
are reported gross without the inclusion of carbon credits.
condition reflected in the remuneration of senior management [B] Total indirect GHG emissions from imported energy from assets and activities under our
and employees as set out in "Linking Shell's emissions targets to operational control using a market-based method. It includes imported energy used for
production of energy and non-energy products. Scope 2 emissions are reported gross
remuneration" on page 104. without the inclusion of carbon credits.
￮ Additional metrics associated with the resilience of Shell's strategy to [C] In 2024, carbon credits were used for compliance with the requirements of the Australian
climate-related risks and opportunities, including information on Safeguard Mechanism, resulting in an offset of 0.1 million tonnes CO2e related to Scope 1
emissions under our operational control.
capital allocation between our business segments and the sensitivity [D] Oil and gas industry guidelines from Ipieca indicate that several sources of uncertainty can
of our assets to carbon pricing, discount rate and commodity price contribute to the overall uncertainty in Scope 1 and 2 emissions inventories.
[E] Figures disclosed are rounded. Rounding differences can occur between the total
assumptions as set out in "Resilience of Shell's strategy to different combined Scope 1 and 2 absolute GHG emissions disclosed in this Report and the sum of
climate-related scenarios" on page 86. components individually rounded to the nearest million tonnes.
￮ Metrics and targets in respect of climate-related environmental risks [F] We measure total combined Scope 1 and 2 GHG emissions compared with a 2016
baseline, on a net basis. The 2016 baseline may be recalculated if an acquisition or a
as set out in "Metrics and targets in respect of climate-related divestment has an impact of more than 10% on total Scope 1 and 2 emissions. There was
environmental risks" page 101. no such event in 2024.

Scope 1, 2 and 3 emissions and related risks

In assessing progress against our target to be a net-zero emissions
energy business by 2050, we report our performance against Scope 1, Scope 1 and 2 emissions (net) by business [A, B]
2 and 3 emissions. million tonnes carbon dioxide equivalent (CO2e)

See "Climate-related risks and opportunities identified by Shell over the short, medium and
long term" on pages 80-84.

Scope 1 and 2 emissions

In 2024, total combined Scope 1 and 2 GHG emissions (net) from
assets and activities under Shell operational control were 58 million
tonnes of carbon dioxide equivalent (CO2e), reflecting a 30% reduction
compared with 2016, the base year for our target to halve these
emissions by 2030.

Total combined Scope 1 and 2 GHG emissions (net) were 2% higher

compared with 2023 due to higher utilisation and production, offset
by reductions from abatement projects.

Drivers of Scope 1 and 2 emissions [A] Total direct (Scope 1) and energy indirect (Scope 2) GHG emissions from assets and
activities under the operational control boundary, net of carbon credits. It includes
Gross direct GHG emissions (Scope 1, operational control boundary) emissions from production of energy and non-energy products. For Scope 2, we used a
were stable in 2024 compared with 2023, at 50 million tonnes market-based method.
[B] Figures disclosed are rounded. The split between Scope 1 and 2 may not add up to
of CO2e, as the effect of higher Chemicals utilisation and Integrated the total due to rounding.
Gas production was offset by reductions from GHG abatement [C] Renewables and Energy Solutions, Marketing, P&T and Real Estate.
projects and reduction activities.

Gross indirect GHG emissions (Scope 2, operational control boundary,

using a market-based method) increased from 7 million tonnes of CO2e,
in 2023 to 8 million tonnes CO2e in 2024. This increase was driven by
higher electricity consumption and reduced purchases of renewable
electricity in Australia following regulatory changes for purchasing and
reporting renewable energy. We present examples of our energy
efficiency projects on page 108.

94 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Drivers of absolute Scope 1 and 2 emissions change

Scope 1 and Scope 2 GHG emissions (net): Changes from 2016 to 2023 and from 2023 to 2024
million tonnes carbon dioxide equivalent (CO2e)

[A] Total Scope 1 and Scope 2 emissions, rounded to the nearest million tonnes. Scope 2 emissions were calculated using a market-based method.
[B] In addition to reductions from GHG abatement and energy efficiency projects, this category includes reductions from permanent shutdowns and conversion of existing assets.
[C] Excludes 7.8 million tonnes of CO₂ captured and sequestered by the Shell-operated Quest CCS facility in Canada in 2016-2023.
[D] Excludes 1.0 million tonnes of CO₂ captured and sequestered by the Shell-operated Quest CCS facility in Canada in 2024.
[E] Of the 1,028 thousand tonnes of reduction activities and purchased renewable electricity in 2024, around 20 thousand tonnes related to purchased renewable electricity.
[F] Change in output relates to changes in production levels, including those resulting from shutdowns and turnarounds as well as production from new facilities.
[G] In 2024, carbon credits were used for compliance with the requirements of the Australian Safeguard Mechanism, resulting in an offset of 0.1 million tonnes CO2e related to Scope 1 emissions
under our operational control.
[H] In 2024, category Other represents the regulatory change for purchasing and reporting renewable energy in Australia and inclusion of emissions from Shell-owned, but third-party operated
Mobility retail stations.

Routine flaring Methane intensity

Routine flaring of associated gas occurs during normal oil production In 2024, we continued to deliver methane emissions intensities well
where it is not possible to transport the gas to market, use it on-site or below our 0.2% target, with overall methane emissions intensity at
reinject it. 0.04% for Shell-operated oil and gas assets with marketed gas and
0.001% for Shell-operated oil and gas assets without marketed gas.
Routine flaring from The Shell Petroleum Development Company of
Nigeria Limited (SPDC) was 0.1 million in 2024, comparable with Total methane emissions from assets under Shell operational control
2023. (including Integrated Gas and Upstream, and Downstream,
Renewables and Energy Solutions assets) were 33 thousand tonnes in
With effect from January 1, 2025, SPDC has ceased routine flaring of 2024 compared with 41 thousand tonnes in 2023 due to lower venting
associated gas, with the completion of essential gas capture projects, (e.g. in 2023 venting occurred due to the maintenance of our Prelude
such as the Forcados Yokri Gas Project, and the shut-in of remaining floating LNG asset and operational issues in assets operated by
facilities from which gas cannot be transported to market. We have Sarawak Shell Berhad).
therefore met our target to eliminate routine flaring from our upstream-
operated assets by 2025 as of this date. We believe our methane emissions are quantified according to industry
best practice. Methane emissions include those from unintentional
Total routine and non-routine flaring at our Integrated Gas and leaks, venting and incomplete combustion, for example in flares
Upstream facilities was 0.6 million tonnes in 2024, compared with and turbines.
0.7 million tonnes in 2023. Around 50% of total flaring in 2024
occurred in assets operated by SPDC and SNEPCo. Methane emissions intensity

On March 13, 2025, Shell completed the sale of SPDC to Renaissance, %

a consortium of five companies. SPDC will continue to operate the (operational control boundary) 2024 2023 2022 2016
SPDC joint venture (SPDC JV [A]) on behalf of all the joint-venture
Methane emissions intensity - assets
partners, who together will continue to make decisions relating to work
with marketed gas [A] 0.04% 0.05% 0.05% 0.10%
programmes for the SPDC JV's assets and infrastructure.
[A] The SPDC JV comprises SPDC (30%), the government-owned NNPC (55%), Total Methane emissions intensity - assets
Exploration and Production Nigeria Ltd (10%) and Nigeria Agip Oil Company Ltd (5%). without marketed gas [B] 0.001% 0.001% 0.01% 0.03%

[A] Methane emissions intensity from all Shell-operated oil and gas assets that market their gas
Total routine flaring [A] (including LNG and GTL assets), defined as the total volume of methane emissions in
3 3
normal cubic metres (Nm ) per total volume of gas available for sale in Nm .
million tonnes [B] Methane emissions intensity from all Shell-operated oil and gas assets that do not market
their gas (such as where gas is reinjected), defined as the total mass of methane emissions
(operational control boundary) 2024 2023 2022 2016 in tonnes per total mass of oil and condensate available for sale in tonnes.

Total hydrocarbons flared in routine flaring 0.1 0.1 0.1 1.1

[A] Routine flaring of associated gas occurs during normal oil production where it is not
possible to transport the gas to market, use it on site or reinject it.

95 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Scope 3 and NCI

NCI performance
In 2024, Shell's NCI was 71 grams of carbon dioxide equivalent per megajoule of energy (gCO2e/MJ), a 1.4% decrease from the previous
year and a 9.0% reduction compared with the 2016 baseline. We therefore met our interim target to reduce our NCI by 9-12% in 2024. The
decrease in our NCI in 2024 was mainly achieved through a reduction in sales of oil products, continued growth in power sales and a reduction
in the average intensity of the oil products we sell.

NCI performance

(equity boundary) 2024 2023 2022 2016

NCI [A] [B] [C] gCO2e/MJ 71 72 75 78
Estimated total energy delivered by Shell [D] [E] trillion (10^12) MJ 15.85 16.13 16.34 20.80
Estimated total GHG emissions included in NCI (net) [F] [G] million tonnes CO2e 1,122 1,158 1,220 1,615
Carbon credits million tonnes CO2e 16.4 20.0 4.1 0
Estimated total GHG emissions (gross) [G] [H] million tonnes CO2e 1,139 1,178 1,225 1,615

[A] Rounded to the nearest gram of carbon dioxide equivalent per megajoule.
[B] We measure our NCI performance compared with a 2016 baseline. The NCI targets and baseline are not adjusted for the impact of acquisitions and divestments, which could have
a material impact on meeting the NCI targets.
[C] In 2024, we revised the 2016 baseline NCI values from 79gCO2e/MJ (g) to 78g. The 2022 and 2023 values were revised from 76g to 75g and from 74g to 72g respectively. (See "NCI
baseline and restatement policy" on page 98.
[D] Volume of energy products sold, aggregated on an energy basis, with power represented as fossil equivalent. Energy products consist of energy oil products (gasoline, diesel, kerosene, fuel
oil and LPG), GTL, biofuels, liquefied natural gas, pipeline gas and power.
[E] In 2024, consistent with revisions of NCI values, we revised the estimated total energy delivered by Shell from 16.07 trillion (10^12) MJ (t MJ) to 16.13t MJ for 2023, from 16.29t MJ to 16.34t
MJ for 2022 and from 20.93t MJ to 20.80t MJ for 2016. (See "NCI baseline and restatement policy" on page 98).
[F] In 2024, consistent with revisions of NCI values, we revised the estimated total GHG emissions included in NCI (net) from 1,185 million tonnes CO2e (mt) to 1,158mt for 2023, from 1,240mt to
1,220mt for 2022 and from 1,645 to 1,615mt for 2016. (See "NCI baseline and restatement policy" on page 98).
[G] Estimated total GHG emissions included in NCI (net) are the product of the NCI and the total energy delivered by Shell. Adding emissions offset using carbon credits gives the Estimated total
GHG emissions included in NCI (gross).
[H] In 2024, consistent with revisions of NCI values, we revised the estimated total GHG emissions (gross) from 1,205 million tonnes CO2e (mt) to 1,178mt for 2023, from 1,244mt to 1,225mt for
2022 and from 1,645mt to 1,615mt for 2016. (See "NCI baseline and restatement policy" on page 98).

As part of our strategy, we aim to increase the share of low-carbon ￮ Power - the emissions intensity of power can be highly variable
products in our energy product sales, which is the biggest driver for depending on how it has been generated. The proportion of our
reducing our NCI. renewable power sales and the generation mix in countries where
we sell power to the market both affect Shell's overall power mix
Share of estimated total energy delivered per energy and its resulting emissions intensity.
product type [A, B, C]
We sell more energy products than we produce ourselves. Therefore,
when we calculate our emissions, we include emissions from energy
products that we produce ourselves and from the products that we
purchase from others for resale. This is reflected in the scope for
calculation of our emissions shown in the chart on page 99.

Life-cycle carbon intensities for energy product categories included in

the NCI calculation are summarised in the table below:

Carbon intensity of energy products [A]

gCO2e/MJ
2024 2023 2022 2016
Oil products and gas-to-liquids [B] 86 87 87 87
Gas [C] 66 66 66 66
Liquefied natural gas (LNG) [D] 70 70 71 73
[A] Percentage of delivered energy may not add up to 100% because of rounding.
[B] Total volume of energy products sold, aggregated on an energy basis (lower heating Biofuels [E] 34 34 37 38
value) with power represented as fossil equivalents.
[C] In 2024, consistent with revisions of NCI values, the share of energy delivered through Power [F, G] 48 49 57 60
sales of biofuels was revised from 1% to 2% in 2023 and 2022. The share delivered
through gas sales was revised from 20% to 19% for 2023. See "NCI baseline and [A] In 2024, consistent with NCI value revisions, we revised the intensities of individual
restatement policy" on page 98. products in this table. See "NCI baseline and restatement policy" on page 98.
[B] Revised from 91gCO2e/MJ (g) to 87g for 2023, from 91g to 87g for 2022 and from 89g
to 87g for 2016.
Our ability to change the emissions intensity of each energy product [C] Revised from 65gCO2e/MJ(g) to 66g for 2022 and from 67g to 66g for 2016.
varies, depending on the product type: [D] Revised from 70gCO2e/MJ(g) to 71g for 2022 and from 71g to 73g for 2016.
[E] Revised from 39gCO2e/MJ(g) to 34g for 2023, from 39g to 37g for 2022 and from 40g
￮ Hydrocarbon fuels - emissions from end use by customers are by to 38g for 2016.
far the biggest contributors to the carbon intensity of the product. [F] Revised from 58gCO2e/MJ(g) to 57g for 2022 and from 59g to 60g for 2016.
[G] Emissions included in the carbon intensity of power have been calculated using a market-
As a result, the emissions intensity of hydrocarbon fuels is expected based method.
to stay relatively unchanged over time. This is why we are focused
on helping our customers decarbonise.
￮ Biofuels - can vary significantly in intensity depending on the
feedstock and production process used.

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Drivers of absolute Scope 3 emissions change in 2024 Drivers of absolute Scope 3 Category 11 oil products
Scope 3 emissions associated with our energy product sales were 1,084 emissions change in 2024
million tonnes CO2e, compared with 1,123 million tonnes CO2e in 2023, In 2024, Scope 3 Category 11 emissions from the use of our oil
driven by lower sales of oil products. products were 491 million tonnes CO2e, a reduction of 5.0% compared
with 2023. This reduction was driven by lower sales in our Mobility and
Emissions from Scope 3 categories 1, 3, 9 and 11, related to the sale of Products businesses.
energy products, are the most significant categories for Shell. Emissions
At the end of 2024, we achieved a reduction of 13.7% compared with
from the use of our energy products (Category 11) form the largest
2021, and are progressing towards our ambition to reduce customer
component of our indirect Scope 3 emissions. As we sell more products
emissions from the use of our oil products (Scope 3, Category 11) by
than we produce or refine ourselves, the emissions associated with the
15-20% by 2030 compared with 2021.
products we purchase from third parties are also material, as reported
under Category 1 for hydrocarbon products such as oil products, gas
and LNG, and Category 3 for power. Although quantitatively less Customer emissions from the use of our oil products
significant, emissions reported under Category 9 are significant to
million tonnes CO2e
Shell for consistency with the boundaries of our net carbon intensity
measure. Other Scope 3 categories have been assessed to be (equity boundary) 2024 2023 2022 2021
quantitatively and qualitatively insignificant. Scope 3, Category 11: use of sold products
(oil products) 491 517 527 569
Scope 3 emissions by category [A], [B], [C]
Carbon credits
million tonnes CO2e In 2024, Shell accounted for the retirement of 17.3 million carbon
(equity boundary) 2024 2023 2022 2016 credits, of which 16.4 million were related to our NCI (including 2.4
million linked to the sale of energy products).
Scope 3, Category 1: purchased goods
and services [D] 119 130 136 179
Of our total carbon credit retirements for 2024, 74% were certified by
Scope 3, Category 3: fuel and energy- the Verra, Verified Carbon Standard Program (VCS), 10% by the ACR
related activities 117 112 115 89
(formerly American Carbon registry), 15% by Gold Standard, and 1%
Scope 3, Category 9: downstream via Australian Carbon Credit Units.
transport and distribution [E, F] 3 3 3 —
Scope 3, Category 11: use of sold We carefully source and screen the credits we purchase and retire from
products [G] 845 878 909 1,252 the market.
1,084 1,123 1,163 1,520

[A] Categorised using the definitions from the GHG Protocol's Corporate Value Chain Carbon credit retirements [A]
(Scope 3) Standard.
[B] Ipieca notes that due to the diversity of Scope 3 emissions, sources and the fact that these Million carbon credits [B]
emissions occur outside the company's boundaries, the emissions estimates may be less
accurate or may have a high uncertainty. (equity boundary) 2024 2023 2022 2016
[C] In 2024, the total of Scope 3 Categories 1,3,9 and 11 was revised for 2023 (from 1,147
million tonnes CO2e to 1,123 million tonnes CO2e), for 2022 (from 1,174 million tonnes Included in Shell's NCI metric [C] 16.4 20.0 4.1 0.0
CO2e to 1,163 million tonnes CO2e) and for 2016 (from 1,545 million tonnes CO2e to
Excluded from Shell's NCI metric [D] 0.9 1.8 1.7 0.0
1,520 million tonnes CO2e). See "Basis of preparation – absolute Scope 1, 2 and 3
emissions" on page 100-101. 17.3 21.8 5.8 0.0
[D] In 2024, we revised Scope 3 Category 1 for 2023 (from 154 million tonnes CO2e to 130
million tonnes CO2e), for 2022 (from 144 million tonnes CO2e to 136 million tonnes CO2e) [A] Represent credits related to transactions occurring in the financial year irrespective of
and for 2016 (from 172 million tonnes CO2 to 179 million tonnes CO2e). See "Basis of the actual retirement date. Retirements from registries may take place after the year-end.
preparation – absolute Scope 1, 2 and 3 emissions" on page 100-101. Excludes carbon credits transactions executed by Shell on behalf of/with third parties
[E] In 2024, we revised Scope 3 Category 9 for 2022 (from 5 million tonnes CO2e to 3 without a link to Shell activities.
million tonnes CO2e). See "Basis of preparation – absolute Scope 1, 2 and 3 emissions" on [B] One carbon credit represents the avoidance or removal of one metric tonne of CO2
page 100-101. equivalent.
[F] An estimate of Scope 3, Category 9 could not performed for 2016. [C] Carbon credits associated with the sale of energy products and carbon credits used to
[G] In 2024, we revised Scope 3 Category 11 for 2022 (from 910 million tonnes CO2e to 909 compensate for Shell Group emissions including operational emissions and emissions
million tonnes CO2e) and for 2016 (from 1,284 million tonnes CO2e to 1,252 million tonnes associated with the use of sold products.
CO2e). See "Basis of preparation – absolute Scope 1, 2 and 3 emissions" on page [D] Carbon credits retired in relation to sales of non-energy products and Shell's internal
100-101. activity like corporate travel.

97 Shell Annual Report and Accounts 2024

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Basis of preparation ￮ other indirect emissions from waste generated in operations, business
NCI travel, employee commuting, transmission and distribution losses
Shell's NCI is the average intensity, weighted by sales volumes, associated with imported electricity, franchises and investments; and
of the energy products sold by Shell. It is tracked, measured and ￮ emissions from capital goods, defined by the GHG Protocol as
reported using Shell's Net Carbon Footprint (NCF) methodology. including fixed assets or property, plant and equipment, and other
goods and services not related to purchased energy feedstocks
NCI objective sourced from third parties or energy products manufactured by
Shell's NCI provides an annual measure of the life-cycle emissions third parties and sold by Shell.
intensity of the portfolio of energy products sold. The intended use
of the NCI metric is to track progress in reducing the overall carbon The NCI calculation uses Shell's energy product sales volumes data,
intensity of the energy products sold by Shell. NCI measures emissions as disclosed in this Report. This excludes certain sales volumes such as:
associated with each unit of energy we sell, compared with a 2016 ￮ certain contracts held for trading purposes reported net rather than
baseline. It reflects changes in sales of oil and gas products, and gross. Business-specific methodologies to net volumes have been
changes in sales of low- and zero-carbon products such as biofuels applied in oil products and pipeline gas and power. Paper trades
and renewable electricity. that do not result in physical product delivery are excluded; and
￮ retail sales volumes from markets where Shell operates under
NCI definition trademark licensing agreements.
The NCI is calculated on a life-cycle basis and as such includes GHG
emissions – on an equity basis – from several sources, including: The energy products included in the NCI calculation are oil products,
￮ direct GHG emissions from Shell operations; (gasoline, diesel, kerosene, fuel oil and LPG), GTL, biofuels, LNG,
￮ indirect GHG emissions from the generation of energy consumed pipeline gas and power.
by Shell; and
￮ indirect GHG emissions from the use of the products we sell. We review the NCI methodology annually to ensure it reflects
changing energy products, relevant data inputs and simplification
The NCI is not a mathematical derivation of total emissions divided opportunities. See our Net Carbon Footprint (NCF) methodology
by total energy, nor is it an inventory of absolute emissions. It is a documentation on shell.com for further information.
weighted average of the life-cycle CO2 intensities of different energy
products, normalising them to the same point relative to their final NCI baseline and restatement policy
enduse. The use of a consistent functional unit, grams of carbon dioxide We measure our NCI performance compared with a 2016 baseline.
equivalent per megajoule (gCO2e/MJ), allows like-for-like comparisons The NCI targets and baseline are not adjusted for the impact of
and the aggregation of individual life-cycle intensities for a range of acquisitions and divestments, which could have a material impact on
energy products including renewable power. meeting the NCI targets. The 2016 baseline may be recalculated as a
result of changes in estimates with a cumulative impact of 2% or more
Emissions from other parts of the product life cycle are also included, on the NCI value in any historically disclosed year.
such as those from the extraction, transport and processing of crude
oil, gas or other feedstocks and the distribution of products to our In 2024, the 2% cumulative restatement threshold was met, triggered
customers. Also included are emissions from parts of this life cycle not by changes in external data sources for the third-party upstream and
owned by Shell, such as the extraction of oil and gas processed by refining intensities used in our calculation of life-cycle product
Shell but not produced by Shell; or from the production of oil products intensities.
and electricity marketed by Shell that have not been processed or
generated at a Shell facility. Accordingly NCI values were revised for the following years:
￮ 2016: from 79g to 78gCO2e/MJ (Baseline)
We also take into account emissions offset through the use of carbon ￮ 2017: from 79g to 78gCO2e/MJ
credits and mitigation actions such as the use of CCS technology. ￮ 2018: from 79g to 78gCO2e/MJ
￮ 2019: from 78g to 77gCO2e/MJ
See "Scope of NCI" on page 99 for details of the supply chains and ￮ 2020: from 75g to 74gCO2e/MJ
steps in the product life cycles that are included in the Net Carbon ￮ 2021: from 77g to 76gCO2e/MJ
Footprint methodology. ￮ 2022: from 76g to 75gCO2e/MJ
￮ 2023: from 74g to 72gCO2e/MJ
The following GHG emissions are not included in the NCI:
￮ emissions from production, processing, use and end-of-life treatment These changes did not impact the NCI performance outcomes
of non-energy products, such as chemicals and lubricants; compared with interim reduction targets in 2022 and 2023 or
￮ emissions from third-party processing of sold intermediate products, preceding years. Compared with the revised 2016 baseline, the
such as the manufacture of plastics from feedstocks sold by Shell; percentage reduction achieved in 2022 remains 3.8%, within the
￮ emissions associated with the construction and decommissioning of target of 3-4% for that year. The percentage reduction achieved in
production and manufacturing facilities; 2023 was revised from 6.3% to 7.7%, still within the target of 6–8%
￮ emissions associated with the production of fuels purchased to for that year.
generate energy on-site at a Shell facility;

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Scope of NCI

99 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Basis of preparation – absolute Scope 1, 2 and 3 In 2024, carbon credits were used for compliance with the
emissions requirements of the Australian Safeguard Mechanism, resulting in an
We follow the GHG Protocol's Corporate Accounting and offset of 0.1 million tonnes CO2e related to Scope 1 emissions under
Reporting Standard, which defines three scopes of GHG emissions: our operational control.
￮ Scope 1: direct GHG emissions from sources under Shell's
operational control. Baseline and restatement policy
￮ Scope 2: indirect GHG emissions from the generation of purchased We measure our total combined Scope 1 and 2 GHG emissions
energy consumed by Shell assets under operational control. performance compared with a 2016 baseline, on a net basis. The 2016
￮ Scope 3: other indirect GHG emissions, including emissions baseline may be recalculated if an acquisition or a divestment has an
associated with the use of energy products sold by Shell. impact of more than 10% on total Scope 1 and 2 emissions. There was
no such event in 2024.
GHG emissions comprise CO2, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride and Scope 3 emissions
nitrogen trifluoride, with CO2 and methane being the most significant This Report provides Scope 3 emissions associated with our energy
contributors. product sales. Emissions were consolidated using the equity boundary
approach. Under this approach, we reported the Shell share of
Scope 1 and 2 emissions emissions from energy products sold, including those sourced from
Our GHG inventory is prepared in line with the requirements third parties.
outlined in the ISO 14064-1:2018 Specification with Guidance at the
Organizational Level for Quantification and Reporting of Greenhouse Emissions from Scope 3 categories 1, 3, 9 and 11, related to the sale of
Gas Emissions and Removals and the GHG Protocol's Corporate energy products, are the most significant categories for Shell. Emissions
Accounting and Reporting Standard. from the use of our energy products (Category 11) form the largest
component of our indirect Scope 3 emissions. As we sell more products
In line with external standards, we aggregate GHG emissions into than we produce or refine ourselves, the emissions associated with the
tonnes of CO2 equivalent by applying global warming potential products we purchase from third parties are also material, as reported
(GWP) factors to non-CO2 GHGs. With effect from 2023, these factors under Category 1 for hydrocarbon products such as oil products, gas
are taken from the IPCC's Fifth Assessment Report (AR5) over a 100- and LNG, and Category 3 for power. Although quantitatively less
year time period, as required by the UK Government GHG Conversion significant, emissions reported under Category 9 are significant to
Factors for Company Reporting. GHG emissions are aggregated and Shell for consistency with the boundaries of our net carbon intensity
consolidated from emission source. All operated assets are included in measure. Other Scope 3 categories have been assessed to be
our GHG inventory. quantitatively and qualitatively insignificant.

Scope 1 emissions Consistent with our revisions of NCI historical data, we revised Scope 3
All significant sources were included in our Scope 1 inventory. Sources emissions under Categories 1, 9 and 11, as applicable, for years 2016,
included comprise: 2022 and 2023 in this Report. There was no change to previously
￮ combustion of carbon-containing fuels in stationary equipment published Scope 3 emissions Category 11 Oil products. See "NCI
(e.g. boilers and gas turbines) for energy generation; baseline and restatement policy" on page 98 for details.
￮ combustion of carbon-containing fuels in mobile equipment
(e.g. trucks, vessels and mobile rigs); The calculation of Scope 3 Category 11 emissions uses energy product
￮ flares; sales volumes data, disclosed in this Report where relevant. These sales
￮ venting and emissions from industrial processes (e.g. hydrogen plants volumes exclude certain contracts held for trading purposes and
and catalytic cracking units); and reported net rather than gross. Business-specific methodologies have
￮ fugitive emissions, including piping and equipment leaks and been applied to net volumes of oil products, pipeline gas and power.
non-routine events. Paper trades that do not result in physical product delivery are excluded.
Retail sales volumes from markets where Shell operates under trademark
Our Scope 1 emissions follow the GHG Protocol guidance. As a result, licensing agreements are not included in the sales volumes reported by
the following are not included in our reported Scope 1 emissions: Shell and are therefore excluded from Scope 3 emissions.
￮ CO2 emissions from biogenic sources such as biofuels or biomass
(however methane and nitrous oxide emissions from biogenic Scope 3, Category 1: purchased goods and services
sources are included); This category includes well-to-tank emissions from purchased third-party
￮ captured CO2 that was subsequently sold or otherwise transferred unfinished and finished energy products excluding electricity (which is
to third parties; reported separately under Category 3: fuel and energy-related
￮ CO2 captured and sequestered using CCS technologies; and activities and not included in Scope 1 or Scope 2). Emissions from
￮ carbon credits. purchased non-energy products are not included.

Scope 2 emissions Emissions in this category are estimated using well-to-tank emission
All significant sources were included in our Scope 2 inventory. Sources factors for crude oil, natural gas, refined oil products (such as gasoline,
included comprise indirect emissions from purchased and consumed and diesel), LNG and biofuels. Because the emission factors include
electricity, steam and heat. We did not identify any assets with transport, we do not estimate emissions from the transport of purchased
imported cooling or compressed air used for energy purposes. third-party products separately.

Scope 2 emissions are calculated using the market- and location-based In 2024, Category 1 emissions were revised for the following years:
methods separately as defined by the GHG Protocol Scope 2 ￮ 2016: from 172 million tonnes CO2e to 179 million tonnes CO2e
Guidance. Scope 2 emissions are presented on a gross basis. ￮ 2020: from 147 million tonnes CO2e to 150 million tonnes CO2e
￮ 2021: from 147 million tonnes CO2e to 142 million tonnes CO2e
Carbon credits ￮ 2022: from 144 million tonnes CO2e to 136 million tonnes CO2e
Our target to halve total Scope 1 and 2 GHG emissions by 2030 has ￮ 2023: from 154 million tonnes CO2e to 130 million tonnes CO2e
been set on a net basis, including emissions offset by carbon credits.

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Scope 3, Category 3: fuel and energy-related activities It is assumed that the presence of biogenic emissions associated
(not included in Scope 1 and 2) with other Scope 3 categories is negligible at present.
This category includes well-to-wire emissions from purchased third-party
electricity sold by Shell, calculated using a market-based method. Customer emissions from the use of our oil products
Emissions are not adjusted for any potential double-counting of sold Our ambition to reduce customer emissions from the use of our oil
natural gas that may have been used for generating this electricity. products is a subset of Scope 3, Category 11 emissions, focusing
on the use of refined oil products.
This category does not include:
￮ indirect emissions from the generation of imported energy (steam, We measure these emission reductions compared with a 2021
heat or electricity consumed by our assets). These emissions baseline. The 2021 baseline may be recalculated in the event of a
are reported separately as Scope 2 emissions; and revision of our sales of oil products, or in the event of other changes
￮ well-to-tank emissions from purchased electricity, steam and heat to emissions factors subject to a 2% cumulative threshold.
consumed by our assets (i.e. Scope 3 emissions from the extraction,
refining and transport of primary fuels before their use in the Metrics and targets in respect of climate-related
generation of electricity or steam). environmental risks
We monitor physical risk exposures, whether climate-related or
Following the NCI restatement in 2024, Scope 3, Category 3 not, water use, emissions to air and water, biodiversity, and waste
emissions remained unchanged at: generated from our operations. Where relevant, we may manage
￮ For 2016 at 89 million tonnes CO2e our environmental performance by establishing specific targets.
￮ For 2020 at 103 million tonnes CO2e See 'Respecting nature' on page 111 for more information.
￮ For 2021 at 136 million tonnes CO2e
￮ For 2022 at 115 million tonnes CO2e See "Respecting nature" on pages 109-113.
￮ For 2023 at 112 million tonnes CO2e

Scope 3, Category 9: downstream transport and distribution Targets used by Shell to manage climate-related risks
This category includes estimated emissions from the transport and and opportunities and performance against targets
distribution of energy products produced or refined by Shell. It does not Our response to the energy transition risk focuses on decarbonising our
include the emissions associated with transporting third-party products, value chain. This section sets out our climate targets which are focused
which are included in Scope 3, Category 1. To avoid double counting on reducing our NCI and our absolute emissions, as presented on
across emission scopes, emissions from transport activities which are pages 102-103. Shell's material climate-related risks and opportunities
already included in our Scope 1 and 2 equity emissions are excluded are set out in the "Climate-related risks and opportunities identified by
from this category. Shell over the short, medium and long term" section on pages 80-84.

In 2024, Category 9 emissions were revised for the year 2022, We have set intensity targets and absolute targets and an ambition
from 5 million tonnes CO2e to 3 million tonnes CO2e. Scope 3 over the short, medium and long term to track our performance over
Category 9 emissions remained unchanged for 2021 (at 6 million time (as summarised below). The targets are forward-looking targets
tonnes CO2e) and for 2023 (at 3 million tonnes CO2e). An estimate based on management's current expectations and certain material
of Scope 3 Category 9 was not performed for 2016 and 2020. assumptions and, accordingly, involve risks and uncertainties that could
cause actual results, performance or events to differ materially from
Scope 3, Category 11: use of sold products those expressed or implied herein.
This category includes estimated emissions from the use of sold
energy products, such as LNG, GTL, pipeline gas, refined oil products We believe our total net absolute emissions peaked in 2018 at
and biofuels. These emissions relate to products manufactured and 1.7 gigatonnes of carbon dioxide equivalent (GtCO2).
sold by Shell and third-party products sold by Shell.
Our net-zero target includes emissions from our operations, as well
as from the end use of all the energy products we sell. We are seeking
This category does not include non-energy products that may have
to reduce emissions from our own operations, including the production
been combusted during use (for example, lubricants).
of oil and gas. More than 90% of the total emissions we include within
our NCI boundary are indirect emissions associated with third-party
In 2024, Category 11 emissions were revised for the following years:
products and end-use emissions of energy products we sell, so we
￮ 2016: from 1,284 million tonnes CO2e to 1,252 million tonnes CO2e
are also working with our customers to support them in transitioning
￮ 2020: from 1,054 million tonnes CO2e to 1,028 million tonnes CO2e
to low-carbon products and services.
￮ 2021: from 1,010 million tonnes CO2e to 963 million tonnes CO2e
￮ 2022: from 910 million tonnes CO2e to 909 million tonnes CO2e
In October 2021, in support of our 2050 net-zero emissions target, we
set a target to reduce Scope 1 and 2 absolute emissions from assets
For 2023, Scope 3 Category 11 remained unchanged at 878 million
and activities under our operational control (including divestments) by
tonnes CO2e.
50% by 2030 compared with the 2016 baseline, on a net basis.

Revisions did not impact Category 11 emissions from the use of oil We aim to maintain methane emissions intensity for operated oil and
products. gas assets below 0.2% and achieve near-zero methane emissions by
2030. We were aiming to eliminate routine flaring from our upstream-
Biogenic emissions operated assets by 2025 [A] and Shell has delivered this target.
[A] This target was subject to the completion of the sale of The Shell Petroleum Development
CO2 emissions from biogenic sources related to the combustion of sold
Company of Nigeria Limited (SPDC). With effect from January 1, 2025, SPDC ceased
biofuels are estimated but, in line with GHG Protocol guidance and routine flaring. As detailed elsewhere in this report, on March 13, 2025, Shell completed
ISO 14064-1:2018, not included in Scope 3, Category 11. Methane the sale of SPDC to Renaissance.
and nitrous oxide emissions from biogenic sources are included in
Scope 3, Category 11.

101 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

In March 2024, we set revised targets to reduce the NCI of the energy Shell's Paris-aligned targets
products we sell in 2024 by 9-13% by 2025, 15-20% by 2030 and
100% by 2050. In recognition of the uncertainty in the pace of change
in the energy transition, we retired our 2035 target of a 45% reduction
in NCI.

The NCI metric measures the pace of transition by tracking our

progress in reducing the overall carbon intensity of the energy products
sold by Shell. NCI measures emissions associated with each unit of
energy we sell, compared with a 2016 baseline. It reflects changes in
sales of oil and gas products, and changes in sales of low- and zero-
carbon products -- such as biofuels and renewable electricity. Unlike
Scope 1 and 2 emissions, reducing the NCI of the products we sell
requires action by both Shell and our customers, with the support
of governments and policymakers to create the right conditions
for change.

In March 2024, we set an ambition to reduce customer emissions from

the use of our oil products (Scope 3, Category 11) by 15-20% by 2030
compared with 2021 [B]. This level of ambition is in line with the EU's
climate goals in the transport sector, among the most progressive in the
world. Achieving this ambition will mean reducing sales of oil products,
such as gasoline and diesel, as we support customers as they move to
electric mobility and lower-carbon fuels.
[B] Customer emissions from the use of our oil products (Scope 3, Category 11) were 517
million tonnes carbon dioxide equivalent (CO2e) in 2023 and 569 million tonnes CO2e Progress towards our Scope 1 and 2 target
in 2021. The chart below shows our progress since 2016 in reducing our Scope
1 and 2 emissions and gives an indication of how we expect to achieve
In the short and medium term, we have set climate targets for emissions our target in 2030. The actions we take to achieve our target will
that we are able to control, namely our Scope 1 and 2 emissions, depend on the evolution of our asset portfolio and the continued
methane emissions and flaring. We have also set climate targets and development of technologies which reduce carbon emissions. We
an ambition for emissions that are outside our control. These include expect that, on a net portfolio basis, reductions predominantly from
our ambition to reduce the Scope 3, Category 11 customer emissions abatement projects including carbon capture and storage and
from the use of our oil products, and our target to reduce the net electrification, may outweigh increases in our Scope 1 and 2 emissions
carbon intensity of all the energy products we sell. from new investments between 2025 and 2030. Our investments in
producing low-carbon energy will increase our Scope 1 and 2
Setting targets for NCI emissions, while reducing the NCI of the products we sell. Subsequent
Shell's target is to become a net-zero emissions energy business by reductions in our emissions are reflected in the mechanisms outlined
2050. We also have short-, medium- and long-term targets to reduce below and reflect an expected path to meeting our target by 2030.
the carbon intensity of the energy products we sell, measured using
our NCI metric. We believe these targets are aligned with the more To decarbonise our operations, we are focusing on:
ambitious goal of the Paris Agreement, which is to limit the rise in ￮ making portfolio changes such as acquisitions and investments in
global average temperature this century to 1.5°C above pre-industrial low-carbon intensity projects, decommissioning plants, divesting
levels. There is no established standard for aligning an energy supplier's assets, while sustaining our oil production with increasingly lower
decarbonisation targets within the 1.5°C temperature goal of the Paris carbon intensity;
Agreement. For this reason, we have defined our NCI target using ￮ progressing the repurposing of our energy and chemicals parks;
1.5°C scenarios developed for the IPCC's AR6. ￮ improving the energy efficiency of our operations;
￮ using more renewable electricity to power our operations; and
We start with the complete set of 1.5°C scenarios and then exclude ￮ developing CCS for some of our facilities.
scenarios which are too reliant on carbon removals or use of bioenergy
before removing outliers. We then calculate an emissions intensity for If required, we may choose to use high-quality carbon credits to offset
each scenario which is comparable to our own NCI. Finally, we any remaining emissions from our operations, in line with the carbon
produce a 1.5°C pathway based on the reductions in emissions mitigation hierarchy of avoid, reduce and compensate.
intensity over time. We have chosen to use a range instead of any
individual scenario to better reflect the uncertainty of the
energy transition.

We believe that using this pathway to set our targets demonstrates

that they are aligned with the more ambitious 1.5°C goal of the Paris
Agreement. This is illustrated in the chart below. We also believe that
the pace of change will vary around the world by region and by sector,
taking into consideration the time needed for energy users to invest in
large-scale equipment and the energy infrastructure changes needed
for Shell to deliver more low- and zero-carbon energy.

102 Shell Annual Report and Accounts 2024

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Working to reduce our absolute Scope 1 and 2 emissions

Scope 1 and 2 emissions in million tonnes of CO2e [A],[B]

[A] The 2016 baseline may be recalculated if an acquisition or a divestment has an impact of more than 10% on total Scope 1 and 2 emissions. There was no such event in 2024.
[B] Operational control boundary and presented on a net basis (i.e. inclusive of any use of carbon credits).
[C] Including compliance and voluntary carbon credits as required.

Progress towards our NCI target

Unlike Scope 1 and 2 emissions, reducing the NCI of the products we sell requires action by both Shell and our customers, with the support of
governments and policymakers to create the right conditions for change. The biggest driver for reducing our NCI is increasing the sales of and
demand for low-carbon energy. The chart below illustrates how changes in the volume of products and services we sell could result in NCI
reductions towards 2030. The change in our sales of these products and services will also reflect the development and adoption of new
technologies and infrastructure, and the adoption of public policies designed to encourage the energy transition.

Working to reduce our NCI

NCI in gCO2e/MJ [A], [B]

[A] Grams of carbon dioxide equivalent per megajoule.

[B] In 2024, we revised the 2016 baseline NCI value from 79gCO2e/MJ (g) to 78g. The 2022 and 2023 values were respectively revised from 76g to 75g and from 74g to 72g.
[C] Hydrocarbon sales reflect the effect of lower sales of oil products, and higher sales of natural gas. Emissions associated with gas are lower than those of oil products.
[D] Power sales show the expected growth of our integrated power business and increasing sales of renewable power.
[E] Sales of low-carbon fuels reflect higher sales of biofuels and hydrogen, which are low- and zero-carbon products.
[F] CCS reduces carbon emissions by capturing them at source.
[G] High-quality carbon credits such as nature-based solutions can be used to offset remaining carbon emissions, particularly in hard-to-abate sectors such as aviation and industries including
cement and steel.

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Linking Shell's emissions targets to remuneration ￮ maintaining methane emissions intensity below 0.2% and achieving
We have established remuneration structures to support us in reducing near-zero methane emissions by 2030 [B].
our operational emissions and to support customers in reducing their [A] This target was subject to the completion of the sale of The Shell Petroleum Development
Company of Nigeria Limited (SPDC). With effect from January 1, 2025, SPDC ceased
emissions. The majority of employees participate in the annual bonus routine flaring. As detailed elsewhere in this report, on March 13, 2025, Shell completed
scheme which is linked to the Group scorecard. From 2025, the Long- the sale of SPDC to Renaissance.
[B] On an intensity basis.
Term Incentive Plan (LTIP) is referred to as the Performance Share
Awards (PSA) and no further Performance Share Plan (PSP) awards will
be made. Our annual bonus scorecard and PSA include "Shell's journey It will also take into account progress in developments that support the
in the energy transition" performance metrics, which are designed to energy transition to 2030 and beyond, such as the development of our
ensure that remuneration is aligned with Shell's Operating Plan and Power business (including renewables), lower-carbon LNG, biofuels,
longer-term strategic ambitions. electric vehicle charging, hydrogen and CCS.

PSA will be awarded to Executive Directors and around 120 senior Additionally, progress towards achieving a 15-20% reduction in NCI by
executives. Circa 12,000 employees will receive PSA and/or Restricted 2030 (2016 baseline) and a 15-20% reduction in customer emissions from
Share Awards (RSA), which are time-based, based on seniority. the use of our oil products by 2030 (2021 baseline) [C], as well as Shell's
wider performance in helping to accelerate the energy transition, such as
by demonstrating leadership and advocacy in standard-setting, alongside
See "Directors' Remuneration Report" on pages 188-190. any other factors considered material will be taken into account.
[C] This ambition was set in March 2024. Customer emissions from the use of our oil products
(Scope 3, Category 11) were 517 million tonnes CO2e in 2023 and 569 million tonnes
Energy transition performance condition and the vesting CO2e in 2021.
of the 2022 LTIP and PSP awards
The following performance outcomes for the energy transition See "Annual Report on Remuneration" on page 206 for more information on the
performance condition were considered in the vesting assessment of proposed performance framework.
the 2022 LTIP and PSP awards, covering the performance cycle
2022-2024:
Energy transition targets in the annual bonus scorecard
2022 LTIP energy transition performance condition: Delivering on our net-zero emissions target is a part of the annual bonus
outcome scorecard, which helps determine annual performance bonus outcomes
for senior management and the majority of Shell's employees.
Outcome
Net carbon intensity (NCI) Performance indicator met The energy transition progress measures are shown in the table below.
Growing the power business Performance indicator met
Growing new lower-carbon product offerings Performance indicator 2024 scorecard: Shell's journey in the energy transition
partially met
2024 2024 2024
Develop emissions sinks Performance indicator Target Performance Status
partially met
LNG volumes [A] million tonnes
per annum 28.7 29.1 Above target
In addition to the above, a number of broader indicators of Shell's Reducing
progress in the energy transition were considered. Overall, it was operational thousand Outstanding
determined that the energy transition measure (accounting for 20% of emissions tonnes of CO2 700 1,028 [B]
the LTIP award and 10% of the PSP award) should vest at 130% of the Supporting
target. See "Long-term Incentive Plan vesting: 2022 LTIP - 2022 LTIP customer Number of EV
energy transition performance conditions outcome" on pages 197-199 decarbonisation charge points 70,000 72,800 Above target
for more information. [A] Equity liquefaction.
[B] Above the maximum target

See "Annual Report on Remuneration" on pages 191-207.

Our score for LNG volumes in 2024 was above target, reflecting
strong operational performance. This was driven mainly by volume
Energy transition performance condition in the 2024 LTIP increases in Australia and the Atlantic region, partly offset by feedgas
and PSP awards constraints in Nigeria and Egypt.
For LTIP and PSP awards granted in 2024, the energy transition
performance condition had a weighting of 25% in the LTIP and 12.5% The 2024 outcome for operational emissions reductions was
in the PSP. Determination of the extent to which awards will vest will be outstanding with 1,028 thousand tonnes of GHG emissions reductions
based on its holistic assessment of progress towards reducing emissions from abatement, renewable energy and permanent shutdowns or
from our operations and supporting customers to reduce their emissions. conversions ("right-sizing"). This was driven by catalyst improvements in
Pearl, Forcados Yokri Gas Project in Nigeria and optimisation of
Energy transition performance condition for 2025 PSA liquefaction control system in QGC.
For the 2025 PSA, the "Shell's journey in the energy transition"
performance condition retains the same weighting and performance We have continued to grow our network of electric vehicle charge
assessment framework as for 2024. The determination of the extent points, exceeding our 2024 target. In 2024, we added around 19,000
to which awards will vest will be based on an holistic assessment charge points, which brings the total number to around 73,000.
of progress towards reducing emissions from our operations and
supporting our customers to reduce their emissions. This will be There is no change to the energy transition measure in our annual
based on climate-related targets for our own operations of: bonus scorecard for 2025.
￮ halving Scope 1 and 2 emissions by 2030 under operational control
on a net basis (2016 baseline);
See "Annual Report on Remuneration" on page 195.
￮ eliminating routine flaring from upstream operations by 2025 [A]; and

104 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Assurance of GHG emissions measures Shell's responsibilities

Independent assurance report to the directors of Shell plc Shell's management is responsible for selecting the Criteria, and
on Greenhouse Gas Emissions for presenting the Subject Matter in accordance with that Criteria,
We have been engaged by Shell plc ("Shell") to perform a 'limited in all material respects. This responsibility includes establishing and
assurance engagement', as defined by International Standards on maintaining internal controls, maintaining adequate records and
Assurance Engagements, here after referred to as the engagement, making estimates that are relevant to the preparation of the GHG
to report on the accompanying GHG statement to be included within statement, such that it is free from material misstatement, whether
the "Our Journey to Net Zero" section within Shell's Annual Report & due to fraud or error.
Accounts for the year ended 31 December 2024 (the "Report"),
comprising of the following, hereafter the "Subject Matter". All EY's responsibilities
Subject Matter relates to the year ended 31 December 2024 Our responsibility is to express a conclusion on the presentation
unless stated otherwise. of the Subject Matter based on the evidence we have obtained.

Scope 1 & 2 Greenhouse Gas Emissions ("GHG Subject Matter") Our engagement was conducted in accordance with the International
￮ Scope 1 & 2 Greenhouse Gas Emissions (Operational Control Standard for Assurance Engagements on Greenhouse Gas Statements
Boundary) ('ISAE 3410') and the International Standard for Assurance Engagements
other than Audits or Reviews of Historical Financial Information ("ISAE
Net Carbon Intensity related KPI's ("NCI Subject Matter") 3000 (Revised)"), and the terms of reference for this engagement as
￮ Net Carbon Intensity agreed with Shell on August 8, 2024.Those standards require that we
￮ Scope 3, Categories 1, 3, 9, 11 Greenhouse Gas Emissions (Equity plan and perform our engagement to express a conclusion on whether
Boundary) we are aware of any material modifications that need to be made to
￮ Revised Net Carbon Intensity for the years ended 31 December the Subject Matter in order for it to be in accordance with the Criteria,
2016 through 31 December 2023 (inclusive) and to issue a report. The nature, timing, and extent of the procedures
￮ Revised Scope 3, Categories 1, 3, 9, 11 Greenhouse Gas Emissions selected depend on our judgment, including an assessment of the risk
(Equity Boundary) for the years ended 31 December 2016, 31 of material misstatement, whether due to fraud or error.
December 2020 through 31 December 2023 (inclusive)
We believe that the evidence obtained is sufficient and appropriate
Other than as described in the preceding paragraph, which sets out the to provide a basis for our limited assurance conclusion.
scope of our engagement, we did not perform assurance procedures
on the remaining information included in the Report, and accordingly, Our independence and quality management
we do not express a conclusion on this information. We have maintained our independence and confirm that we have met
the requirements of the Code of Ethics for Professional Accountants
Comparative information included in the Report has not been part of issued by the International Ethics Standards Board for Accountants
our limited assurance engagement other than KPI's set out within the and have the required competencies and experience to conduct this
Subject Matter. Consequently, we do not provide any assurance on the assurance review.
comparative information and thereto related disclosures in the Report.
Our conclusion is not modified in respect of this matter. EY also applies International Standard on Quality Management 1,
Quality Management for Firms that Perform Audits or Reviews of
Criteria applied by Shell Financial Statements, or Other Assurance or Related Services
In preparing the GHG Subject Matter, Shell applied its internal engagements, which requires that we design, implement and operate
performance monitoring and reporting requirements that incorporates a system of quality management including policies or procedures
ISO 14064-01 (2018) and the Greenhouse Gas Protocol (the regarding compliance with ethical requirements, professional
"GHG Criteria"). standards and applicable legal and regulatory requirements.

In preparing the NCI Subject Matter, Shell applied the Shell Net Description of procedures performed
Carbon Footprint: Methodology (the "NCI Criteria"). The NCI Criteria Procedures performed in a limited assurance engagement vary in
can be accessed on shell.com. nature and timing from, and are less in extent than for a reasonable
assurance engagement. Consequently the level of assurance obtained
GHG and NCI Criteria were designed for the preparation of the in a limited assurance engagement is substantially lower than the
Report. As a result, the Subject Matter information may not be suitable assurance that would have been obtained had a reasonable assurance
for another purpose. engagement been performed. Our procedures were designed to obtain
a limited level of assurance on which to base our conclusion and do not
provide all the evidence that would be required to provide a
reasonable level of assurance.

105 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Although we considered the effectiveness of management's internal

controls when determining the nature and extent of our procedures,
our assurance engagement was not designed to provide assurance
on internal controls. Our procedures did not include testing controls or
performing procedures relating to checking aggregation or calculation
of data within IT systems. The Greenhouse Gas quantification process
is subject to scientific uncertainty, which arises because of incomplete
scientific knowledge about the measurement of GHGs. Additionally,
GHG procedures are subject to estimation (or measurement)
uncertainty resulting from the measurement and calculation
processes used to quantify emissions within the bounds of
existing scientific knowledge.

A limited assurance engagement consists of making enquiries, primarily

of persons responsible for preparing the Subject Matter and related
information, and applying analytical and other relevant procedures.
Our procedures included:
￮ Making inquiries of the specialists responsible for managing the
Subject Matter to obtain an understanding of the relevant reporting
processes and control framework
￮ Obtaining an understanding of the Subject Matter and Criteria and
considering the reasonableness of the methodology and associated
assumptions
￮ Re-performing the underlying calculations applied in the Subject
Matter
￮ Performing analytical review procedures over the Subject Matter
￮ Examining the disclosures within the Report for the appropriate
presentation of the Subject Matter, including the discussion of
limitations and assumptions relating to the data presented

We also performed such other procedures as we considered necessary

in the circumstances.

Conclusion
Based on our procedures and the evidence obtained, we are not
aware of any material modifications that should be made to the
Subject Matter for the year ended 31 December 2024, in order
for it to be in accordance with the Criteria.

Restricted use
We disclaim any assumption of responsibility for any reliance on this
assurance report or its conclusions to any other persons, or for any
purpose other than that for which it was prepared. Accordingly, we
accept no liability whatsoever, whether in contract, tort or otherwise,
to any third party for any consequences of the use or misuse of this
assurance report or its conclusions.

/s/Ernst & Young LLP

Ernst & Young LLP

March 25, 2025
1 More London Place
London
SE1 2AF

106 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Other regulatory disclosures Data inputs used in the calculation of Shell's GHG intensity are
as follows:
GHG emissions and energy consumption data -
information provided in accordance with UK regulations Inputs used for calculating Shell's GHG emissions
Data in this section are consolidated using the operational control intensity
approach. Under this approach, we account for 100% of the GHG
(operational control boundary) 2024 2023 2022
emissions and energy consumption in respect of activities where
we are the operator, irrespective of our ownership percentage. A Scope 1 emissions (gross) [A] 50 50 51
B Scope 2 emissions (gross) [A] 8 7 7
Reporting on this operational control basis differs from that applied
C=A+B Total Scope 1 and 2 GHG
for financial reporting purposes in the "Consolidated Financial emissions (gross) [A] 58 57 58
Statements".
D Total oil and gas production
available for sale [B] 114 111 111
See "Basis of preparation – absolute Scope 1, 2 and 3 emissions"
E Refinery crude and feedstock
on pages 100-101.
processed [B] 60 62 63
F Chemicals total production [B] 25 21 23
GHG emissions in million tonnes of CO2 equivalent
G LNG production [B] 12 10 9
(operational control boundary) 2024 2023 2022 H GTL production [B] 6 6 6
Total global direct (Scope 1) [A] 50 50 51 I=D+E+F+G+H Total Upstream, Integrated
UK including offshore area [B] 1.6 1.7 1.7 Gas and Downstream activity
[B] 217 210 212
Market-based
J=C/I Shell GHG intensity [C] 0.27 0.27 0.27
Total global energy indirect (Scope 2) [C] 8 7 7
[A] In million tonnes CO2 equivalent.
UK including offshore area — — —
[B] In million metric tonnes of production. The production data in this table (operational
Location-based control basis) are not directly comparable with the production data reported elsewhere in
this Report (reflecting the sum of production financial control and share of joint ventures
Total global energy indirect (Scope 2) [D] 8 8 8 and associates).
[C] In tonnes of CO2 equivalent per tonne of production.
UK including offshore area 0.04 0.04 0.04

Shell GHG intensity in tonnes per Energy use in our operations

tonne The energy consumption data provided below comprises own energy,
Shell GHG intensity [E] 0.27 0.27 0.27 generated and consumed by our facilities, and energy purchased
(electricity, steam and heat) by our facilities for our use.
[A] Emissions from the combustion of fuels and the operation of our facilities globally,
calculated using global warming potential (GWP) factors from the IPCC's Fifth Assessment
Report. Energy consumption data reflects primary (thermal) energy (including
[B] Emissions from the combustion of fuels and the operation of our facilities in the UK and its the energy content of fuels used to generate electricity, steam, heat,
offshore area, calculated using GWP factors from the IPCC's Fifth Assessment Report.
[C] Emissions from the purchase of electricity, heat, steam and cooling for our own use mechanical energy). This includes energy from renewable and
globally, calculated using a market-based method as defined by the GHG Protocol non-renewable sources.
Corporate Accounting and Reporting Standard.
[D] Emissions from the purchase of electricity, heat, steam and cooling for our own use
globally, calculated using a location-based method as defined by the GHG Protocol Own energy generated is calculated by multiplying the volumes of fuels
Corporate Accounting and Reporting Standard. consumed for energy purposes by their respective lower heating values.
[E] In tonnes of total Scope 1 and Scope 2 gross emissions per tonne of crude oil and
feedstocks processed and petrochemicals produced in downstream manufacturing and,
Own energy generated that is exported to third-party assets or to the
oil and gas available for sale, LNG and GTL production in Integrated Gas and Upstream. power grid is excluded.

Thermal energy for purchased and consumed electricity is calculated

using actual electricity purchased multiplied by country-specific
electricity generation efficiency factors (from IEA statistics).

Thermal energy for purchased and consumed steam or heat is

calculated from actual steam or heat purchased multiplied by a
supplier-specific conversion efficiency, or a generic efficiency factor
where supplier-specific data are not available.

107 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our journey to net zero continued

Our energy consumption increased from 205 billion kilowatt-hours Examples of some of the principal measures that were taken in 2023
(kWh) in 2023 to 212 billion kWh in 2024, in line with the increase are listed below (with estimated total savings of around 999 million
in our Scope 2 GHG emissions. Around 1% of the energy we used kWh in 2023):
in 2024 for our operations came from renewable sources. ￮ At our Geismar site in the USA: idling the furnace when not required.
￮ At our Rheinland site in Germany: optimising the amount of steam
Energy consumption in billion kilowatt-hours required depending on use and load.
￮ At our Sarnia site in Canada: replacing an existing reaction furnace
2024 2023 2022 with a new high-intensity burner.
￮ At our Scotford complex in Canada: optimisation which enables a
Own energy generated and consumed
reduction in electricity and excess hydrogen vented to flare.
Total energy generated and consumed 179 174 177 ￮ At our Prelude site in Australia: optimisation of the process and
UK including offshore area 6.2 6.1 6.1 operating conditions to reduce flaring.
Purchased and consumed energy ￮ At our Pearl site in Qatar: reducing steam generation requirements
via steam balance optimisation.
Total purchased and consumed energy 33 31 32
￮ At our GTL asset in Malaysia: optimising fuel flows to the boiler unit.
UK including offshore area 0.2 0.2 0.2 ￮ At our UK Upstream operations: reducing compression power
Energy consumption requirements between our Shearwater platform and St Fergus gas
terminal.
Total energy consumed 212 205 209
￮ At our Gulf of America operations in the USA: optimising power
UK including offshore area 6.4 6.3 6.3 generation between platform and rig and upgrading existing
equipment.
In 2024, we implemented a variety of measures to reduce the energy ￮ At our Sarawak Shell Berhad assets in Malaysia: optimising the use
use and increase the energy efficiency of our operations. of gas turbine generators from four to three units.

Examples of some of the principal measures taken in 2024 to reduce EU Taxonomy Regulation
energy use and improve efficiency (with estimated total savings of The EU Taxonomy Regulation is a classification system for determining
around 1,233 million kWh in 2024) are: when an economic activity can be considered environmentally
￮ At our Rheinland site in Germany: replacement of liquid fuel fired sustainable according to EU standards. It aims to encourage investment
boilers with gas fired boilers. in a low-carbon economy by creating common definitions of
￮ At our QGC site in Australia: implementation of advanced process sustainability and mandatory disclosures to help investors make
control for liquefaction at the QGC Midstream LNG facility and a informed decisions. In anticipation of the transposition by the
reduction in required hydraulic power motor speed at well sites. Netherlands of the EU Corporate Sustainability Reporting Directive
￮ At our Prelude site in Australia: optimisation of process resulting in (CSRD) into national law, a key development for Shell in 2024 has
reduced steam consumption and flaring and reduced fuel gas use. been the voluntary implementation of the CSRD and the accompanying
￮ At our GTL asset in Qatar: reduction of minimum flow of fuel gas to European Sustainability Reporting Standards (ESRS). This means Shell
the cogeneration system, allowing fuel gas to be used in other plc will come fully into scope of the EU Taxonomy Regulation upon the
furnaces replacing natural gas usage. transposition of the CSRD by the Netherlands into law. The CSRD
￮ At our Sarawak Shell Berhad assets in Malaysia: upgrading a gas extends the EU Taxonomy Regulation's reporting obligation to third-
turbine air intake filter to a high efficiency particulate air (HEPA) country issuers that are listed on European exchanges.
filter.
￮ At our upstream operations in the UK: flare optimisation, which See "EU Taxonomy disclosure" on pages 377-390.
resulted in less fuel gas that needed to be mixed with flare gas to
make it combustible.
￮ At our Gulf of America Mars site: savings of fuel gas combustion as
a result of operating the gas compression system with only one field
gas compressor.
￮ At our Gulf of America Perdido site: reduction of the electrical power
demand through reduction of production separation pressure.

108 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year

Respecting
nature
We seek to protect the
environment, increase
our reuse and recycling,
make a positive
contribution to biodiversity
and use water and other
resources efficiently.

109 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Respecting nature continued

We seek to protect the environment, increase our reuse and

recycling, make a positive contribution to biodiversity and use
water and other resources efficiently. Our activities can impact
nature through discharges and emissions to the environment,
and through changes to the use of land and water.

In 2024, we have:
￮ continued to embed our respect for nature into our activities,
standards and business processes;
￮ expanded our data reporting capabilities to help meet regulatory
requirements;
￮ continued to build employees' awareness, knowledge and skills
to deepen their understanding of respecting nature; and
￮ continued to meet our commitments to reduce fresh-water
consumption in water-stressed areas and to use packaging for
our products that is designed to be reusable or recyclable.

Our approach is underpinned by the Shell Commitment and Policy on

Health, Security, Safety, the Environment and Social Performance (HSSE
Photo: Reforestation programme, Canada, 2024.
& SP), and our Safety, Environment and Asset Management (SEAM)
Standards, which are part of the Shell Performance Framework.
Forest habitats
Deforestation occurs when forests are converted to non-forest uses.
We require our operated assets to be certified to an independent and
We apply the definition of forest used by the UN's Food and
internationally recognised standard for environmental management
Agriculture Organization (FAO). Our commitment to net-zero
systems, such as ISO 14001 or equivalent, if they have significant
deforestation commenced in 2022.
environmental risks.
Our aim is to avoid deforestation, in line with the mitigation hierarchy.
We report data in this section on a 100% basis for companies and
Where avoidance is not achievable, we require our assets, projects
joint ventures in which Shell is the operator, unless stated otherwise.
and businesses to develop and implement reforestation plans. These
plans include measures designed to achieve net-zero deforestation,
See "Our approach to sustainability" on page 130. while maintaining biodiversity and conservation value. We work with
partners and stakeholders to develop robust and credible plans unique
to each reforestation project.
Biodiversity and ecosystems
We aim to manage the impact of our activities on the environment
There is typically a time lag between the deforestation of an area and
and to make a positive contribution to biodiversity in our operations.
the start of the replanting process, which can range from months to
￮ Forest habitats: We are replanting forests and working to achieve
years. As a result, there is often a difference in the number of hectares
net-zero deforestation from new activities while maintaining
deforested and the number of hectares replanted within a single year.
biodiversity and conservation value.
￮ Critical habitats: Our new projects in areas rich in biodiversity,
In 2024, around 214 hectares were deforested as a result of our
known as critical habitats, are designed to achieve a net positive
activities. This occurred largely in Australia, Canada and Nigeria
impact on biodiversity.
where we are preparing for or implementing reforestation programmes
￮ World Heritage Sites: Since 2003, we do not explore for, or
in line with local plans. We reforested 64 hectares in 2024 in Canada.
develop, oil and gas resources in natural and mixed World
Heritage Sites.
Critical habitats
Critical habitats are specific areas of high biodiversity value in which
When planning a project, our standards require us to assess the
receptors are particularly sensitive to development.
potential impact of projects on biodiversity and communities as part
of our impact assessment process. We then apply the mitigation
When undertaking a project in a critical habitat, we aim to go beyond
hierarchy, a decision-making framework that involves a sequence
compensating for a residual adverse impact to deliver an overall
of four key actions: avoid, minimise, restore and offset.
conservation gain to or net positive impact on biodiversity.
Achieving a positive impact on biodiversity can take many years because
If a project is located in a critical habitat, we develop and implement a
complex ecosystems need time to develop after conservation efforts.
biodiversity action plan. This sets out the actions needed to follow the
We believe it is important to involve communities in conservation
mitigation hierarchy and includes measures to achieve a net positive
projects, so we often work in collaboration with local organisations.
impact on biodiversity.

At the end of 2024, 62 new projects for which the final investment
decision had been taken after February 2021 were located in critical
habitats. Of these, 61 have a biodiversity action plan in place to work
towards a net positive impact.

110 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Respecting nature continued

Examples of activities in development or under way in 2024 include: Key developments related to waste and circularity in 2024 include:
￮ in partnership with a local university, we are executing an ecological ￮ at the Pearl gas-to-liquids facility in Qatar, we have diverted waste
restoration programme on Browse Island, Australia, to help eradicate to local cement kilns for use as clinker in cement production, thereby
invasive alien species, improve reef health and promote the return of reducing use of raw materials and the amount of waste sent to landfill;
breeding seabirds to enhance regional resilience; ￮ our Gulf of America operations are finding ways to reduce disposal
￮ on Príncipe Island, São Tomé and Príncipe, we helped implement a of unused chemicals, for example, by testing and treating them so
turtle conservation programme in partnership with a local that they can be returned to the supplier for reuse; and
conservation organisation; and ￮ at our Brazos wind farm upgrade in Texas, we sent decommissioned
￮ in partnership with the Marine Alliance for Science and Technology turbine blades to be recycled for use as a component in construction
for Scotland (MASTS), and its member institutions, including Scottish materials.
government stakeholders, we helped to set up a multi-year research
programme to gain insights into the ecology of skates and sharks in We are working to reduce waste and increase circularity in those parts
Scottish waters to help develop effective conservation strategies. of our business where it is possible to do so. In 2024, we concluded our
aim for zero waste is technically unfeasible. We continue to improve
waste and circularity plans at the asset level to drive fit-for-purpose
waste reduction and optimise local circular economies.

In 2024, we disposed of 1,933 thousand tonnes of waste, compared

with 2,251 thousand tonnes in 2023.

Water
We require our assets, projects or businesses to manage sourcing,
use, treatment and disposal of water based on recognised water
stewardship principles and to implement this through a water
stewardship management plan. These plans help us to move away
from a traditional inside-out approach focusing on our impact on the
environment to an outside-in approach that considers how we impact,
and are impacted by, the environment. They also help us to reduce
consumption in water-stressed areas.

Since 2021, we have conducted water stewardship assessments at

18 assets across different businesses and regions, with a priority on
operations in areas of high water stress and those that use significant
Photo: Turtle conservation, São Tomé and Príncipe, 2024. quantities of fresh water. The insights gained from these assessments
have moved us towards a more holistic stewardship approach. This
Resource use and circular economy goes beyond only focusing on water use to also considering factors
We aim to use water and other resources efficiently, and to increase such as water footprint, regional water stress, water quality,
our reuse and recycling. catchments, governance and stakeholder engagement. Building on
￮ Waste and circularity: Our businesses are deepening their efforts these efforts, our Mobility and US Midstream businesses developed
to better understand the types of waste we generate and identify water stewardship plans in 2024.
options to increase circular approaches.
￮ Water: We are implementing water stewardship principles across In 2021, we set a voluntary commitment to reduce our consumption
our businesses and developing water stewardship management of fresh water by 15% by 2025 compared with 2018 levels in areas
plans. This includes focusing on the sustainable management of where there is high fresh-water stress. We achieved this commitment
fresh water resources, particularly in water-stressed areas. ahead of time in 2022. In 2024, our consumption of fresh water in
￮ Packaging: We have a priority to increase the amount of recycled areas of high water stress was 16 million cubic metres compared with
plastic in Shell-branded packaging to 30% by 2030, based on the 25 million cubic metres in the base year of 2018, a 36% reduction over
reference year of 2022, and to ensure that the packaging we use the period.
for our products is reusable or recyclable by design. These priorities
apply to Shell-branded Mobility and Lubricants products. Discharges to water
We track pollutants in water returned to the environment from the day-
Waste and circularity to-day running of our facilities (referred to as "discharges to surface
In 2024, we introduced a new requirement within our SEAM Standards water"). We work to minimise these discharges according to local
for our assets, projects or businesses to develop strategies to identify regulatory requirements and our SEAM Standards.
circularity-related risks and opportunities. Through this, we aim to
encourage the development of fit-for-purpose objectives and strategies Plastics
based on the principles of rethink, refuse, reduce, reuse, recycle Shell supports the need for improved circularity of the global plastics
and repair. market. We encourage reduction, reuse and recycling of plastics and
are a founding member of the Alliance to End Plastic Waste, which
Since 2021, we have completed 26 detailed assessments across our helps governments to assess and improve waste collection and waste
businesses to better understand the types of waste we generate and management. We are working with partners across the plastic waste
identify options to increase circular approaches. Using these results, value chain, such as the waste management industry and pyrolysis
our assets are improving local waste management practices by oil producers, to encourage the development of a more circular
prioritising waste prevention, reuse and recycling over energy value chain.
recovery and disposal.

111 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Respecting nature continued

Since 2019, Shell has been processing pyrolysis oil made from mixed Spills
plastic waste at the Shell Norco Energy and Chemicals Park in the Our assets are designed to avoid discharges to soil or groundwater.
USA. In 2024, we began production at our new pyrolysis oil upgrader However, spills can occur due to operational failure, accidents, unusual
at the Shell Chemicals Park Moerdijk in the Netherlands. The upgrader corrosion, or theft and sabotage. Large spills of crude oil, oil products
improves the quality of pyrolysis oil, a liquid made from hard-to-recycle and chemicals can harm the environment. They can also result in major
plastic waste, and turns it into chemical feedstock. The plant has the clean-up costs, fines and other damages. Spills can affect our licence
capacity to process up to 50,000 tonnes of pyrolysis oil per year. to operate and harm our reputation.

Packaging Spill prevention and response

Shell has a priority to increase the amount of recycled plastic in Shell- Our policies on asset integrity and process safety are in place to
branded packaging to 30% by 2030 based on the reference year prevent losses of containment from happening. We design, operate
of 2022 and to use packaging for our products that is reusable or and maintain our facilities with the intention of preventing spills, by
recyclable by design. These priorities apply to Shell-branded Mobility identifying potential hazards and implementing controls that can
and Lubricants products. prevent them from occurring. This is integral to our Goal Zero ambition
￮ Packaging classified as reusable or recyclable: In 2024, we of doing no harm to people and to have no leaks across our
continued to meet our priority to use packaging for our products that operations. If a spill or a leak occurs, we use barriers that operate
is reusable or recyclable by design. We maintained 99% total Shell- independently of each other to reduce the likelihood of a release
branded product packaging classified as reusable or recyclable in becoming catastrophic. Such barriers are designed so that, if the failure
our Lubricants business and achieved 92% in our Mobility business, of one occurs, it does not lead to the failure of others. Our policies on
compared with 79% in the base year of 2022. soil and groundwater are designed to manage the potential health
￮ Recycled plastic content in packaging: By the end of 2024, we had and environmental impacts should spills occur.
achieved a level of 17% recycled plastic content by weight in Shell-
branded plastic packaging compared with 10% in the base year Our business units are responsible for organising and executing spill
of 2022. responses in line with the SEAM Standards and relevant legal and
regulatory requirements. Our assets have spill response plans, based
Air quality on worst-case spill scenarios, should an incident occur. We also
We follow the most stringent of either the SEAM Standards or local continue to be involved in industry groups to improve well-containment
regulations to manage airborne pollutants in our operations, including capabilities. These include the Marine Well Containment Company in
emissions of nitrogen oxides (NOx), sulphur oxides (SOx) and volatile the Gulf of America and Oil Spill Response Limited, a global industry
organic compounds (VOCs). group. For oil spills, we have a global response network that enables
us to deal more effectively with oil spills, supplementing local
There are often synergies to be achieved between greenhouse response capability.
gas improvement opportunities and reducing emissions of other
air pollutants. For example, operational efficiencies that reduce See "Safety" on page 123.
site power generation can also reduce emissions of VOCs, SOx and
NOx. In 2024, we continued to implement leak detection and repair
programmes to reduce emissions of volatile organic compounds, In 2024, there were 69 operational spills of more than 100 kilograms
with a focus on sources exceeding 100 tonnes per year. compared with 71 in 2023 (restated from 70 operational spills of more
than 100 kilograms following a review of the performance data). The
We are developing a range of choices for customers to help volume of operational spills of oil and oil products in 2024 was 1.23
people and companies reduce their transport emissions. This includes thousand tonnes, compared with 0.37 thousand tonnes in 2023. The
building our electric vehicle charging business. For heavy-duty road increase in operational spill volumes is partly attributable to a spill that
transport, LNG as a fuel and GTL fuel and motor oils help reduce occurred during severe weather in the Gulf of America, as well as
sulphur emissions, particulates and nitrogen oxide compared with incidents in Singapore, Canada and Nigeria.
oil-based products.
Spills in Nigeria
Our key metrics in 2024 include: SPDC JV - Nigeria: operational spills
￮ SOx emissions in 2024 decreased to 21 thousand tonnes, compared In 2024, The Shell Petroleum Development Company of Nigeria
with 31 thousand tonnes in 2023. Limited (SPDC) [A], as operator of the SPDC joint venture (SPDC JV,
￮ NOx emissions in 2024 increased to 92 thousand tonnes compared Shell interest 30%), reported 20 operational spill incidents of more
with 88 thousand tonnes in 2023. than 100 kilograms of crude oil, compared with 9 reported in 2023.
￮ VOC emissions in 2024 were 32 thousand tonnes compared with The increase in the number of operational spill incidents was largely
32 thousand tonnes in 2023 (restated from 36 thousand tonnes because of a rise in cases of failure due to factory defects in a locally
following a review of the performance data). manufactured clamp used in pipeline repairs following the removal of
illegal connections. The company that manufactured the clamps has
See "Our journey to net zero" on page 76.
recalled the affected batch, and SPDC has commenced the
replacement of the clamps.

In 2024, the volume of operational spills of oil and oil products was
0.37 thousand tonnes compared with 0.005 thousand tonnes reported
in 2023. The majority (89%) of the 2024 volume relates to two
significant incidents, one onshore on the Trans Niger Pipeline and the
other offshore at a terminal loading buoy.

[A] Unless otherwise stated, all activities reported for or as relating to The Shell Petroleum
Development Company of Nigeria Limited (SPDC) in this section should be understood as
SPDC acting as the operator of the SPDC joint venture (SPDC JV). SPDC, as the corporate
entity, owns 30% of the joint venture.

112 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Respecting nature continued

SPDC JV has an ongoing work programme to appraise, maintain and Response and remediation
replace key sections of pipelines and flow lines to reduce the number Regardless of the cause, SPDC JV cleans up and remediates areas
of operational spills. affected by spills originating from its facilities. Clean-up activities
include bio-remediation which stimulates micro-organisms that naturally
On March 13, 2025, Shell completed the sale of SPDC to Renaissance. break down and use carbon-rich oil, effectively removing it. Once
By preserving the full range of SPDC's operating capabilities, the clean-up and soil remediation operations are completed, the work is
transaction has been designed to ensure that the company can inspected and, if satisfactory, approved and certified by the Nigerian
continue to perform its role as operator and to meet its share of regulators. In the event of operational spills, SPDC JV also pays
commitments within the joint venture, including those relating to compensation to affected people and communities.
health, safety, security and environment.
SPDC JV works with a range of stakeholders in the Niger Delta to
See "Upstream" on page 43.
monitor biodiversity recovery at remediated sites and to build greater
trust in spill response and clean-up processes.

SPDC JV - Nigeria: spills caused by crude theft and The clean-up programme established following the 2011 United
sabotage Nations Environment Programme (UNEP) report on Ogoniland is
In 2024, about 81% of crude oil spill incidents of more than 100 executed by the Hydrocarbon Pollution Remediation Project (HYPREP),
kilograms from SPDC JV facilities were caused by the illegal activities an agency of the Nigerian government. Completion of remediation
of third parties. In 2024, the volume of crude oil spills of more than under this programme is verified and certified by the National Oil Spill
100 kilograms caused by crude theft and sabotage was 2.0 thousand Detection and Response Agency (NOSDRA). HYPREP has reported
tonnes (84 incidents), compared with 1.4 thousand tonnes (139 progress of the execution of its programme during 2024 with clean-up
incidents) in 2023. The decrease in the number of incidents in 2024 efforts for 18 sites continuing, and remediation plans being developed
shows an increased effectiveness of anti-theft protection mechanisms. for the remaining 15 sites. SPDC has fully funded its share of the
HYPREP programme.
Prevention
In 2024, SPDC JV continued on-ground surveillance of its areas In 2015, SPDC JV and the Bodo community in Ogoniland signed a
of operation, including its pipeline network, to mitigate third-party memorandum of understanding, granting the remediation team access
interference and ensure that spills are detected and responded to begin cleaning up areas affected by two operational spills that
to as quickly as possible. occurred in 2008. Phase 1 of an agreed three-phase clean-up and
remediation programme, which involved removal of oil from shoreline
Regular surveillance flights and drones are used to inspect the most surfaces and mud flatbeds, was completed in 2018. In 2024, SPDC JV
vulnerable segments of the pipeline network, monitor security and remediated soil and sediments in an additional 106 hectares, bringing
identify any new spills or illegal activity. SPDC JV continued to install Phase 2 to 99% completion. SPDC JV also planted about 1.7 million
and improve anti-theft protection mechanisms for key infrastructure, mangrove seedlings in 2024 as part of Phase 3, achieving 85% of the
such as wellheads and manifolds. These include protective measures project's revegetation goal, up from 17% in 2023. SPDC JV is seeking
such as cages, anti-theft nuts and improved CCTV and networking certification of remediated areas from NOSDRA.
capabilities. These measures continue to help deter theft and
improve response. SPDC JV continues to raise awareness of and counter the negative
effects of crude oil theft and illegal oil refining.
SPDC JV continued to work with the government security agencies in
2024 to maintain surveillance and address illegal activities of third
parties, primarily along the SPDC JV pipelines and their
operational areas.

113 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year

Powering
lives
We power lives
through our products
and activities, and
by supporting an
inclusive society.

114 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Powering lives continued

Shell strives to make a positive impact on people around the

world and this includes providing the energy people need,
contributing to local economies and communities, championing
inclusion and respecting human rights.

We help ensure energy security in our key markets and invest in

businesses that supply energy access in emerging markets. Through our
social investments, we also provide funds, expertise and resources to
increase energy access outside of our commercial business. The supply
of affordable and secure energy is crucial for addressing global
challenges, including those related to poverty and inequality.

Our activities contribute to economies and communities around

the world through job creation, spending on goods and services, and
through the payment of taxes and royalties to governments. Across
more than 70 countries, we employ thousands of people and provide
them with opportunities to develop their careers.

As we transform into a net-zero emissions energy business, we work

with governments and society to support positive economic and social Photo: Staff at Karachaganak, Kazakhstan.
impacts of the transition on our workforce, communities, suppliers
and customers. Employee overview
We employed 96,000 people on a full- or part-time basis as of
Our core values of honesty, integrity and respect for people underpin December 31, 2024. This compares with 103,000 at the end of
everything we do. We aim to become one of the world's most diverse 2023 and 93,000 at the end of 2022.
and inclusive organisations, a place where everyone feels valued,
respected and has a strong sense of belonging. The reduced number of employees in 2024 compared with 2023
reflects our focus on performance, discipline and simplification as
The importance of respecting people also extends to our suppliers. we implement our strategy. We improved efficiencies, and divested
Shell's Supplier Principles outline our expectations for business integrity, and ended some activities in our Downstream, Renewables and
health, safety, security, labour and human rights, and environmental Energy Solutions business. We also improved efficiencies in our
and social performance. Projects & Technology, Human Resources, Legal and Corporate
Relations functions.
Many of our operations are located close to communities and we aim
to be a good neighbour. This includes strong community engagement, Employee overview figures include people working for Shell companies
managing the negative social impacts of our operations and delivering and Shell-operated joint ventures, as well as those seconded to non-
a range of benefits through jobs, local business opportunities and operated joint ventures, but exclude contingent workers, otherwise
social investment programmes. This engagement enables us to identify referred to as contractors. Contractors are external workers who are
and manage impacts from our activities and provide access to remedy. engaged directly or through third parties to provide services to Shell.
They work alongside Shell employees in divisions such as Information
and Digital Technology.
Our people
Our people are essential to our purpose of powering progress Changes in headcount
together. They are key to delivering our strategy and we believe in We employed 81,000 people in Shell, excluding portfolio companies,
helping them to develop their skills. at the end of December 2024. This is fewer than the 84,000 at the end
of 2023. Shell's portfolio companies, which generally maintain their
All metrics throughout this section exclude employees in portfolio own HR systems, employed 15,000 at the end of 2024 compared
companies [A], except for the metrics reflecting total employee with 19,000 at the end of 2023.
number by gender and region, percentage of women employees,
and certain mandatory training courses. See Note 33 to the "Consolidated Financial Statements" on page 311 for the average
[A] Portfolio companies are non-integrated entities within the Shell Group. To give these number of employees by business segment.
companies the flexibility they need, they operate as subsidiaries while generally retaining
their own processes and systems. Portfolio companies comply with Shell's minimum
requirements for controls and compliance. This includes the Shell Performance Framework
and mandatory requirements for ethics and compliance, risk management and safety.

115 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Powering lives continued

The table below presents the distribution of employee contract type,

by gender and region as of December 31, 2024.

Employee contract type by gender and region [A]

Permanent contract/
Employment at-will [B] Fixed-term contract
Men Women Men Women
Number of employees 52,000 28,000 763 344
Breakdown by region
Africa 4% 3% 7% 15%
Asia 38% 44% 36% 40%
Europe 31% 34% 50% 40%
North America 22% 15% 1% 1%
Oceania 3% 2% 6% 4%
South America 2% 2% — —

[A] Excludes employees in portfolio companies.

[B] Employment at-will is used in the USA to describe employment contracts.

The table below presents the number of employees by age group.

Employees by age group [A] [B]

Thousand
% of
employees 2024 2023 2022
Under 30 years old 13% 10 12 11
Between 30 and 50 years old 64% 52 54 51
Above 50 years old 23% 19 18 17
Total employees 100% 81 84 79

[A] Excludes employees in portfolio companies.

[B] Includes employees seconded to joint ventures.

Shell aims to be an attractive employer to its existing and prospective

employees. We offer employees the opportunity to develop their
careers within Shell, including rotations across different parts of
[A] Numbers presented are as of December 31, 2024. the business to grow their skills and progress.

The table below presents the total employee number by gender People development remains a priority for our organisation. We
and region as of December 31, 2024. proactively identify skill and capability gaps for traditional and
emerging businesses; offer training to address these gaps; and if
Number of employees by gender and region needed recruit talent externally to add to the skills and experiences of
our workforce. To enable our leaders to lead this change, we support
Thousand them through targeted interventions including leadership development
2024 2023 2022 and coaching. Our mindset and behaviours, which emphasise
psychological safety, are at the heart of our leadership programmes.
Men Women Total Total Total
Training courses are accessible to all employees, either online or in
Number of employees 63 33 96 103 93 person. In 2024, 264,000 formal training days were delivered to
Breakdown by region employees and joint-venture partners. This compares with 295,000
training days in 2023 and reflects staff reductions in 2024.
Africa 2.5 0.9 3 4 4
Asia 21.7 14.0 36 38 32 Shell's employee turnover as of December 31, 2024 was 7.6%; 6,227
Europe 19.1 10.7 30 31 30 employees left Shell of which 2,931 resigned voluntarily. This compares
North America 16.7 6.2 23 24 23 with 5.7% in 2023, during which 4,685 employees left Shell of which
2,669 voluntarily.
Oceania 1.9 0.9 3 4 3
South America 0.9 0.6 2 2 1

116 Shell Annual Report and Accounts 2024

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Employee engagement Pay, benefits and well-being

Insight into employee needs and perspectives enables Shell to Our Fair Pay Principles are designed to manage pay at Shell and help
continually learn and improve our policies, processes and practices. us ensure that employees are valued, respected and recognised for the
work they do. Shell's pay is designed to be market competitive and free
Management regularly engages with employees through elected from bias. The basis for paying fairly is equal pay for equal work, taking
employee representatives and a range of local formal and informal into account factors such as performance and experience. Through
channels. These channels include webcasts and all-employee messages regular benchmarking, Shell's compensation is typically higher than the
from our CEO and other senior leaders, as well as town halls, team minimum wage level observed locally, including in countries without
meetings and site visits by the Board and EC. legislation on minimum wage. Pay adjustment at Shell is linked to
performance and we share this information with employees to help
In 2024, members of the Board and EC visited Shell sites in the them understand how their pay adjustments are made. We continue
Netherlands where they engaged with employees on our strategy to engage employees transparently and openly about our pay policies
and the energy transition. Board members and Chair, Sir Andrew to help build understanding, trust and confidence in our approach.
Mackenzie, also met with employees in Qatar, Oman and Brazil.
Shell provides a range of benefits, such as global minimum standards
See "Workforce engagement" on pages 167-168. for life, accident and disability cover, as well as maternity and parental
leave, except in certain cases where we are precluded from offering
this. Our benefit packages are tailored to each country to meet the
We seek to comply with applicable local laws and regulations, requirements of local laws and regulations.
including those on working hours. Shell is committed to respecting
human rights. This includes, but is not limited to, the elimination of Flexible work
forced and child labour, respect for freedom of association and the We seek to build a sense of community and collaboration within
effective recognition of the right to collective bargaining. Where Shell's sites where we want employees to feel welcome and valued.
appropriate, engagements take place with union and employee By enabling people to balance their work and personal lives, we can
representatives at asset and country level, as well as with the Shell help them perform at their best. Our Future of Work guide advises
European Works Council. Employees have access to senior leaders, employees and team leaders on hybrid working options.
local employee forums and employee resource groups. We believe
these engagements enable Shell to maintain a constructive employee Employee well-being
and industrial relations environment. Our goal is to empower our employees to feel their best and perform
at their best. We do this by promoting mindsets and behaviours that
support good health, by protecting our people from illness by mitigating
known risk factors. We use evidence-based tools and provide access to
timely support and care for those who are injured, ill or struggling.

Interventions to promote mental, physical and social well-being are

delivered via a mix of measures. For example, through the design of our
workspaces, through local benefit offerings such as gyms and health
checks, and through our country-based employee networks, group
activities and events. Our global campaigns such as I'm Not OK and
World Mental Health Day, help develop individual and team well-
being skill sets, to create healthy and psychologically safe working
environments, and to nurture a culture of care.

Mental well-being
We work to reduce the stigma associated with mental ill health through
open conversations, global and country-level campaigns, senior leader
communications, engagements with elected employee representatives,
and through our experience-sharing portal for employees. This
Photo: In June 2024, Shell's Board of Directors visited Holland Hydrogen 1, one commitment is underscored by our CEO signing a leadership pledge
of Europe's largest renewable hydrogen plants, which is under construction in with MindForward Alliance and the launch of our Global Mental Well-
the Netherlands. being Programme in 2023. The programme's interventions focus on
developing a workplace culture that supports good mental health and
The Shell People Survey offers employees the opportunity to complete an anonymous and
The Shell People Survey is one of the key tools we use to measure voluntary survey in which they can voice their experience of well-being
employee engagement, motivation, affiliation and commitment to at Shell. We monitor the survey results to identify opportunities to
Shell. External and internal research shows that increased employee improve employee well-being. In 2024, we continued to improve the
engagement can result in better business performance and improved programme, introducing new resources such as those that address
safety. In 2024, the response rate to the survey was 86%, compared financial well-being.
with 88% in 2023 which indicates our people's desire to provide
feedback. The overall employee engagement score decreased to 75 Diversity, equity and inclusion
(compared with the top quartile 80 points) from 79 points in 2023, We have ambitions around diversity, equity and inclusion and monitor
which we believe reflects the level of changes introduced in the these on a regular basis. We also continually assess our culture and
organisation as we transform our business to deliver more value employee engagement through tools such as the annual Shell People
with less emissions. Survey.

117 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Powering lives continued

We promote equal opportunity and aim to create an environment As of December 31, 2024, 35% of Shell employees were women. Of
where people feel included. Our approach seeks to reinforce respect the experienced hires who joined Shell as of December 31, 2024, 37%
for people and seeks to provide psychological safety for all our were women compared with 38% in 2023. Of the graduate hires who
employees. joined Shell as of December 31, 2024, 57% were women compared
with 40% in 2023.
Shell employees and contractors are required to complete training
courses that reinforce expected behaviours for a respectful, inclusive A crucial element of achieving gender balance is addressing any pay
workplace, and build our stance against discrimination and gap [A] and we continue to work towards improvements in this area.
harassment, including bullying and sexual harassment. Employees The basis for paying fairly is equal pay for equal work, taking into
and contractors are required to take these courses every two years. account factors such as performance and experience. At Shell, we
monitor pay equity [B] through regular analysis to be confident that
In 2024, our Shell People Survey showed a result of 81 points out of we have pay equity between genders for performing the same jobs.
100 for all questions relating to DE&I. This is a decrease of two points We address any unexplained pay differences related to gender
from 2023 and puts us below the top quartile (85 points). We will through rigorous internal processes and apply our Fair Pay Principles.
continue to focus on improving these efforts in the workplace. We continue to make progress in our gender ambitions at Shell, but
a gender pay gap exists for several reasons, including fewer women
As of 2024, Shell is able to provide 93% of employees where legally in senior leadership positions and fewer women in higher-paid
permissible with the option to voluntarily declare their gender identity, specialist roles.
sexual orientation, race and ethnicity, and disability, via the HR system. [A] Shell seeks to comply with applicable requirements and regulation on pay gap reporting.
Data from this self-identification initiative allow us to monitor progress [B] Men and women who are paid the same for doing similar jobs, at similar level,
responsibility, tenure and performance.
against our DE&I aspirations.
Race and ethnicity
Gender
Through racial and ethnic representation across our workforce we aim
We strive to achieve gender equality. We have signed the World
to reflect the communities in which we work. Shell's Global Council for
Economic Forum declaration on closing the gender gap in the oil and
Race is supported by an Employee Advisory Board which aims to
gas sector and have endorsed the Catalyst CEO Champions for
advance diversity in our workforce.
Change initiative for the advancement of women, especially those
from ethnic minorities, into senior leadership and board positions.
Shell aims to maintain or exceed having at least one Board member
from an ethnic minority background, while acknowledging that in
In line with the UK Listing Rules, the Board of Shell plc aims for gender
periods of Board change this may not be achieved. As of December 31,
balance on the Board, with at least one senior Board position [A] held
2024, the Board had three members who identify as being from an
by a woman. To provide flexibility for periods of change, we aim to
ethnic minority group and one EC member who identifies as being
maintain the representation of both men and women at, or above,
from an ethnic minority group [A].
a minimum of 40%. As of December 31, 2024, women made up
42% of the Board and the position of CFO was held by a woman.
In support of the Parker Review recommendations, Shell aims to
[A] Senior Board position means Chair, CEO, Senior Independent Director, or CFO.
achieve 15% ethnic minority group representation in its Senior
Management [B] by 2027. As of the end of 2024, 15% of Shell's
Over the years, Shell has progressively increased the representation
Senior Management identifies as being from an ethnic minority group.
of women on the EC and in senior leadership roles. As of January 1,
[A] Ethnic minority refers to an individual who self-identifies as Asian, Black, Mixed/multiple, or
2024, we had 57% women and 43% men on our EC. We aim to other ethnic minority group, in line with UK Office for National Statistics classifications.
achieve 35% representation of women in our senior leadership [B] As per Parker Review recommendations, Senior Management refers to senior leadership
based in the UK and is a Shell measure based on compensation grades. We have moved
positions by 2025, and 40% by 2030. The table below shows to this Shell definition of Senior Management for 2024 onwards to align with our self-
the representation of women as of December 31, 2024. identification data collection and processes.

Gender diversity at Board and management level [A] See "Nomination and Succession Committee" on pages 171-174 for our current talent
management and succession process.
Men Women
Level 2024 2023 2024 2023
In some countries, there are local restrictions on collecting and reporting
Board 58% 58% 42% 42%
race and ethnicity data. Shell offers employees the option to voluntarily
Executive Committee 43% 57% 57% 43% declare their race and ethnicity via our self-identification initiative.
Senior Leadership roles [A] 67% 68% 33% 32%

[A] Senior Leadership is a Shell measure based on compensation grade levels. This measure See shell.com for more information on our DE&I progress in the UK, the USA and the
is distinct from "senior manager" as per statutory disclosure requirements set out in the Netherlands.
table below.

Gender diversity data (at December 31, 2024)

Men Women
Gender diversity data Number % Number %
Directors of the Company 7 58% 5 42%
Senior managers [A] 774 65% 413 35%
Employees (thousand) 63 65% 33 35%

[A] Senior manager is defined in section 414C(9) of the Companies Act 2006 and,
accordingly, the number disclosed comprises the Executive Committee members
who were not Directors of the Company, and other directors of Shell subsidiaries
(excluding Directors of portfolio companies).

118 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Powering lives continued

LGBT+ For the 2024 LTIP, 25% of the award is linked to organic free cash flow
We are working to advance lesbian, gay, bisexual and transgender and 25% to the energy transition, with the remaining 50% linked to
plus (LGBT+) inclusion within Shell and the communities where we comparative performance conditions. For the 2024 PSP, 50% of the
work. Most of our work around LGBT+ inclusion happens at a country award is linked to certain indicators described in "Performance
level, in line with local policies, laws and regulations. indicators" on pages 18-19, averaged over the performance period,
with the remaining 50% linked to the same performance conditions
Disability inclusion and accessibility as for the LTIP.
We are working to advance an inclusive, psychologically safe and
accessible environment where people with disabilities can excel. We See the "Directors' Remuneration Report" on pages 188-207.
provide support and adjustments for people with disabilities during the
recruitment process. For example, candidates with a disability or long-
term health condition can indicate whether they require adjustments to For 2025, Restricted Share Awards (RSA) and/or Performance Share
our facilities or our job application process. Our support teams and Awards (PSA) may be awarded to nominated employees on a highly
systems are equipped to make these adjustments if required. We also selective basis. RSAs support employee retention over a three-year
support employees throughout their careers with Shell, including access period and provide a stake in the Company's future. PSAs ensure that
to educational resources, training programmes and personal and remuneration is clearly aligned with Shell's strategic ambitions and
professional development. Our Disability, Accessibility and Inclusion are measured over a three-year performance period.
portal provides comprehensive guidance and tools for line managers,
leaders, people with disabilities and employees to be active allies. See "Annual Report on Remuneration" on page 206 for further information on the
Shell's enABLE employee resource groups provide expertise and advice performance conditions.
to Shell leaders and our businesses on accessibility and disability
inclusion. We also offer a workplace accessibility service which covers
68 locations in 33 countries. The team is supported by functions such Separately, following the BG acquisition, certain employee share
as Shell Health, Human Resources, Real Estate and IT. awards made in 2015 under BG's Long-term Incentive Plan were
automatically exchanged for equivalent awards of shares in the
Shell is part of the Valuable 500, which comprises 500 of the world's Company. The outstanding awards take the form of nil-cost options.
largest companies and organisations that are working collectively to
progress disability inclusion. We are also an active member of the Under all plans, vesting shares are increased by notional dividends
Business Disability Forum and PurpleSpace. accrued during the period from award to vesting. In certain
circumstances, awards may be adjusted before delivery or be subject
Employee share plans to clawback after delivery. None of the awards result in beneficial
Our share plans align employees' interests with our performance ownership until the shares vest.
through share ownership.
See Note 28 to the "Consolidated Financial Statements" on page 305.
See the "Directors' Remuneration Report" on pages 188-207.

Global Employee Share Purchase Plan

Discretionary share awards Eligible employees in participating countries may participate in the
For 2024, Long-term Incentive Plan (LTIP) awards were made to Global Employee Share Purchase Plan. This plan enables them to make
Executive Directors and Senior Management, and Performance Share contributions from net pay towards the purchase of the Company's
Plan (PSP) awards to nominated employees on a highly selective basis. shares at a discount to the market price.
These plans were designed to ensure that remuneration is clearly
aligned with Shell's Operating Plan and/or longer-term strategic UK Shell All Employee Share Ownership Plan
ambitions. Half of the performance conditions applied to the PSP are Eligible employees of participating Shell companies in the UK may
the same as those applied to the LTIP, and performance is measured participate in the Shell All Employee Share Ownership Plan, under
over three years under both plans. which monthly contributions from gross pay are made towards the
purchase of the Company's shares with a matching element.
* Non-GAAP measure (see page 445).

119 Shell Annual Report and Accounts 2024

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Contribution to society Supply chain

Our business activities depend on a competitive and resilient supply
chain. Suppliers play an important role in helping to deliver our
People's lives are better with energy. We help to power lives by
strategy and helping to create value for our stakeholders.
providing vital energy for homes, businesses and transport, including
for cooking, heating and lighting. Energy is also used to provide
As part of Shell's responsible sourcing approach, we aim to work with
essential services, such as health care, and manufactured products
suppliers that behave in an economically, environmentally and socially
which society consumes daily. Shell delivers energy for millions of
responsible manner. Shell partners with suppliers who adhere to our
people around the world every day and is working to help provide
Shell General Business Principles and Shell Supplier Principles. The Shell
energy to those who do not yet have it.
Supplier Principles set out our expectations of suppliers with respect
to business integrity; health, safety, security, environment and social
For example, in November 2024, we joined forces with bp, Equinor
performance (HSSE & SP); and labour and human rights. Our standard
and TotalEnergies to announce a $500 million joint investment
contract terms require adherence to these or equivalent principles.
commitment to help address the challenges of energy access. This joint
investment seeks to support promising, high-impact projects, primarily in
Worker welfare
Sub-Saharan Africa, and South and South-east Asia, that are working
Our approach to worker welfare focuses on the well-being of supplier
to bring access to electricity and improved cooking conditions to
staff on Shell sites and dedicated supplier staff on non-Shell sites, where
underserved communities.
we have the most ability to influence safety, working conditions and
labour rights. We also work with our partners and peers to include
We want to help communities benefit from having us as their neighbour.
worker welfare in industry standards, guidance and best practice. This
Some of the ways in which we make a meaningful contribution are by
helps raise expectations and levels of consistency across the industry.
generating jobs and supporting start-ups and local businesses. In 2024,
Our approach is based on the principles established by Building
our operated and non-operated ventures spent around $42 billion on
Responsibly, an alliance of companies that seeks to promote the rights
goods and services* from suppliers around the world, compared with
and welfare of workers in the engineering and construction industry.
$49 billion in 2023. This reduction is mainly driven by structural cost
reductions and discipline and focus in cash capital expenditure as we
In 2024, we continued to collaborate with peers and suppliers to
implement our strategy.
drive consistency across the industry on worker welfare.

See shell.com for more information about how we engage with contractors and suppliers.

Working with communities

We engage with communities to help us understand their needs and
expectations. This engagement enables us to identify and manage
impacts from our activities and provide access to remedy. Engagement
is a continuous process that helps us improve our decision-making and
performance. Shell's Safety, Environment and Asset Management
(SEAM) Standards are designed to help us to operate responsibly and
avoid or minimise any potentially negative environmental and social
impacts that may result from our operations.

Communities can raise concerns in a number of ways. At large projects

Photo: For more than 40 years, Shell LiveWire has helped entrepreneurs start and/or and assets, community engagement practitioners act as a bridge
grow their businesses. Its biennial Top Ten Innovators awards selects young businesses
that excel in social impact, environmental sustainability and business innovation. Camila
between local communities and our operations. Community feedback
de Araujo Reveles Barreira of Brazil was a Top Ten winner in 2023. mechanisms allow us to receive, track and respond to questions and
complaints. In 2024, we improved our internal tools to make it easier
Our activities also generate revenues for governments through the to track community satisfaction with the remedy offered by the process.
taxes and royalties we pay, which can help governments to fund Communities can also raise concerns anonymously through the Shell
health care, education and other essential services. We publish an Global Helpline.
annual Tax Contribution Report which sets out the corporate income
tax that Shell companies paid in the countries and locations where Our SEAM Standards require us to apply special procedures in
we have a taxable presence. In 2024, Shell paid $18 billion in taxes* situations involving involuntary resettlement, cultural heritage,
to governments, of which $12 billion was paid in corporate income Indigenous Peoples or operations in environments with high or unusual
taxes and $6 billion in government royalties. social risks. In 2024, we engaged with communities who were
impacted by our business activities through involuntary resettlement
which restricted their access to some areas on which they depend for
See shell.com for the Tax Contribution Report.
their livelihoods. This occurred in Albania, Norway, South Korea,
Trinidad and Tobago, and the UK. Our engagement involved plans
* Non-GAAP measure (see page 445). to manage these impacts. We also provided support to help avoid or
manage involuntary resettlement impacts in our non-operated ventures.

See "Our approach to sustainability" on page 130.

See shell.com for more information about our work with communities.

120 Shell Annual Report and Accounts 2024

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Social investment Human rights

Our activities contribute to economies through taxes, jobs and Human rights are fundamental to Shell's core values of honesty,
business opportunities. We also make social investments in areas integrity and respect for people. Respect for human rights is embedded
determined by local community needs and priorities. These investments in the Shell General Business Principles and our Code of Conduct. Shell
are sometimes voluntary, sometimes required by governments, or part is committed to respecting human rights, as set out in the United
of a contractual agreement. Shell has three priority areas for social Nations Universal Declaration of Human Rights and the International
investment: access to energy; skills and enterprise development; and Labour Organization's Declaration on Fundamental Principles and
science, technology, engineering and mathematics (STEM) education. Rights at Work. Our approach is informed by the UN Guiding
Principles on Business and Human Rights. We work closely with various
In 2024, we spent $165 million on social investment, of which $87 organisations to improve how we apply these UN guiding principles.
million (53%) was required by government regulations or contractual
agreements. We spent the remaining $78 million (47%) on voluntary In 2024, we continued to work on salient human rights issues (salient
social investment. human rights are those that are most at risk from our operations).
We prioritise four focus areas where respect for human rights is
See shell.com for more information about our social investment.
critical to how we operate: at the workplace including labour rights,
in supply chains, communities and security. For each of these areas, we
have systems to identify potential impacts and to avoid and mitigate
them. Shell employees working in these focus areas need to complete
mandatory human rights training. In addition, we encourage all
employees to complete the course regardless of their role, to build
greater understanding of human rights across Shell.

Human rights focus areas

See "Safety" on pages 122-124.

See shell.com for more information about our approach to human rights.

121 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year

Safety
Safety, along with our core values, underpins our strategy. Assurance activities play a key role for Shell in providing real-time
We aim to do no harm to people and to have no leaks across feedback about our assets, businesses and functions regarding the
our operations. We call this our Goal Zero ambition. health of critical human and technical safeguards that help prevent
a safety incident. Our assurance activities aim to verify the design
The nature of our operations exposes us to a wide range of safety risks. and functioning of controls, validate the overall efficiency of risk
We plan and execute our work with the aim of preventing harm to management, and highlight areas for improvement.
people or leaks to the environment and to be prepared to respond
if something goes wrong. We report data in this section on a 100% basis for companies and joint
ventures in which Shell is the operator, unless stated otherwise.
We seek to improve safety by focusing on the three areas where the
safety risks associated with our activities are highest: personal safety, Technology and safety
process safety and transport safety. We strive to reduce risks and to We are using digitalisation and artificial intelligence to gather and
minimise the potential impact of any incident. We place a particular process data from our equipment and improve analysis and reporting.
emphasis on the risks that could lead to the most serious consequences This enables remote support and allows us to take action quickly in
if they materialised. unsafe situations.

We continue our multi-year process of refreshing our approach to For example, we have installed T-Pulse, an AI-automated safety
safety for all employees and contractors. This approach is rooted monitoring solution developed by Detect Technologies, at 26 sites.
in a consistent focus on human performance. We ask people at Shell T-Pulse uses CCTV to identify and report real-time safety issues and
to apply a learner mindset, by which we mean the belief that we can unsafe behaviours. Since we began using T-Pulse in 2020, it has
always improve, enhance individual capabilities, learn from mistakes generated alerts for more than 20,000 potential safety issues.
and successes, and speak up freely without repercussions. In more than 1,300 of those cases, interventions helped prevent
significant harm to people or leaks into the environment.
In practice, our refreshed approach to safety is about enhancing
how we prepare for and conduct high-risk activities by: We are installing active fatigue and distraction detection (AFDD)
￮ improving our preparation and execution of frontline work, building devices in vehicles operated by Shell employees or our contractors in
an environment of trust and learning; countries where road transport risks are highest. These devices help us
￮ moving to industry-wide tools so that Shell and contractors work intervene earlier to prevent accidents by detecting the conditions that
on the same basis to manage risks; and can lead to them.
￮ using technology to reduce exposure and identify conditions that
could lead to serious incidents. Personal safety
We continue to strengthen the safety culture and leadership among
It is also about capturing more insights by: our employees and contractors. This aligns with our focus on caring
￮ focusing on serious injuries, illness and fatalities (SIF) and the lessons for people.
we can derive from high-potential incidents where the most serious
consequences that could have led to SIF did not materialise; Our SEAM Standards establish requirements for occupational health
￮ focusing on learning from losses or potential losses of containment, and safety hazards that have the potential to result in harm to people.
and on any degradation of barriers designed to prevent or minimise When our employees and contractors perform tasks, we expect them
the consequences of leaks; to consider the hazards that could potentially cause harm and the
￮ capturing underlying causes through incident investigations; and effectiveness of the barriers in place to prevent incidents and manage
￮ embedding lessons learned in our training and instructions for the consequences should an event occur. We establish and maintain
future work. competence management systems to help ensure people are
competent to perform their roles and responsibilities.
Our approach is governed by our Safety, Environment and Asset
Management (SEAM) Standards, which set out our detailed We run safety awareness programmes and hold an annual global
requirements for personal, process and transport safety. Safety Day to give employees and contractors time to discuss safety
culture on the frontline, reflect on how to prevent incidents, and how to
improve performance. In 2024, the focus was on "Before I start work",
See "Our approach to sustainability" on page 130.
which means pausing to reflect on what needs to be in place before
we start work, for that work to be done safely.

122 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Safety continued

Process safety Road safety

Process safety management is about keeping hazardous substances In 2024, we continued to focus on strengthening our controls and
inside pipes, tanks and vessels, and ensuring that well fluids are implementing technologies that help us to better detect the conditions
contained during construction, interventions (such as maintenance) which can lead to incidents. Our SEAM Standards require Shell
and incidents. Our SEAM Standards establish requirements from employees and contractors who are identified as driving on work-
project design and construction throughout the life cycle of the asset related business to receive defensive driver training.
to keep sites, employees, contractors and communities safe.
In 2024, Shell employees and contractors drove around 424 million
Our SEAM Standards set the steps we take to manage process safety kilometres on company business, equivalent to around 10,580 times
risks, from identifying potential safety hazards to designing the controls around the world. Commercial road transport accounts for most of
that prevent them from occurring. Our standards require the use of the kilometres driven. There were 17 severe motor vehicle incidents
barriers that operate independently of each other to reduce the (SMVIs). An SMVI is defined as a motor vehicle incident resulting in
likelihood of a release becoming catastrophic. Such barriers are a fatality, serious injury or a rollover of a vehicle. There were no road
designed so that if one fails, this does not lead to the failure of others. transport-related fatalities in 2024.

We are focusing on standardising our risk assessment tools, improving Maritime safety
human performance, working to mitigate process safety risks and At the end of 2024, we managed and operated a global fleet of 22
moving from lagging indicators (measuring past outcomes) to leading tankers, liquefied natural gas carriers and the world's first liquefied
indicators (predicting future performance). With the implementation of hydrogen carrier. We are one of the world's largest charterers of oil
the SEAM Standards, our assurance methodologies for process safety and gas vessels. We work with our global maritime partners through
have been updated to provide more insight on the health of barriers our Maritime Partners in Safety Programme to improve the safety
designed to reduce the likelihood of leaks and mitigate any potential performance of the shipping industry.
consequences should a leak occur.
Air safety
We continue to learn from investigations into industry incidents and In 2024, for Shell-operated ventures, our owned and contracted
embed this knowledge into our process safety standards and training aircraft flew around 37,000 hours and carried around 292,000 Shell
programmes. and contractor passengers to destinations across the world. In
addition, remotely piloted aircraft completed flights on surveys,
Preparing for emergencies inspections, emissions surveillance, and security and incident response.
We prepare and practise our emergency response to incidents, such
as a spill or a fire. This involves working closely with local emergency See shell.com for more information on transport safety.
services and regulatory agencies to jointly test our plans and
procedures. Shell requires key operating facilities to test their
emergency response preparedness as per regulatory requirements Working with others
and aligned to industry best practices. In 2024, we held large-scale We work with contractors and suppliers to help them understand
emergency response exercises at Shell Energy and Chemicals Park our safety requirements. We strive to improve the energy industry's
Rotterdam in the Netherlands and in Perth, Australia for offshore safety performance by sharing safety standards and experience
exploration to support our Prelude floating LNG facility. with other operators, joint-venture partners, contractors and
professional organisations.
We manage three regional Emergency Response Leadership Councils
for the Americas; Asia-Pacific; and Europe, the Middle East and Africa. Executives from Shell and our major contractor companies have
The councils bring together experts from different teams that need to be collaborated on Shell's contractor safety leadership programme since
able to work together seamlessly in case of emergencies. In 2024, the 2014. The programme seeks to identify strategies and practical ways
councils' annual regional conferences covered a variety of topics such to improve a shared safety culture and achieve our Goal Zero ambition
as lessons learned, dynamic risk assessments, new response technology, of no harm and no leaks.
non-fluorinated firefighting foam tactics and response preparedness.

Transport safety
Transporting large numbers of people, products and equipment poses
safety risks. We seek to reduce these risks by developing best-practice
standards within Shell. We also work with specialist contractors,
industry bodies, non-governmental organisations and governments
to find ways of reducing transport safety risks.

Photo: A safety briefing for a maintenance and operations crew at the 731.5 megawatt
Borssele III and IV offshore wind farm, the Netherlands, which is owned and operated
by the Blauwwind joint venture (Shell interest 20%).

123 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Safety continued

Safety performance The number of Tier 1 and 2 operational process safety events in 2024
Tragically, two of our contractor colleagues in Shell-operated ventures increased compared with 2023. There were 90 events reported during
lost their lives in incidents which happened in 2024 while working for the year compared with 63 in 2023. The increase in process safety
us. One contractor colleague in the Netherlands lost his life in an tiered events was driven by our Downstream, Renewables and Energy
accident at Shell Energy and Chemicals Park Moerdijk in June 2024. Solutions business. We are actively addressing these challenges by
Another contractor colleague in India was bitten by a snake in May refining our operational strategies, renewing our focus on fundamentals
2024 and subsequently passed away in January 2025. and leveraging new technologies to return to the downward trend of
previous years.
We sadly note that a contractor who sustained burn injuries in a flash
fire at our EcoOils facility in Malaysia in February 2025 passed away A well control incident is defined as a well set-up with fewer than two
later that month. The investigation into the incident remained under barriers in place to protect it against a release through any potential
way at the time of publishing this report. path. In 2024, there were no Level 1 or Level 2 well control incidents
in Shell-operated ventures. There were also no events in 2023.
The death in February 2024 of a contractor colleague in Nigeria, who
was injured in a fire incident in December 2023, was reported in our As part of our learner mindset approach, we investigate serious
2023 Annual Report. incidents so we can understand the underlying causes, including
technical, behavioural, organisational and human factors. We share
Shell is profoundly impacted by these losses. We are resolutely what we learn, including with contractors. We implement mitigations
committed to learn from these incidents and we aim to take all at the site and in the country and business where the incident occurred.
necessary measures to prevent anything similar from happening again. We seek to turn incident findings into improved standards or better
We continue to work closely with our contractors to help build a strong ways of working that can be applied widely across similar facilities.
safety culture at the frontline.
Security
We use serious injury, illness and fatality (SIF) and serious injury, illness Our operations expose us to criminality, civil unrest, activism, terrorism,
and fatality frequency (SIF-F) to measure our safety performance. SIF cyber disruption and acts of war that could have a material adverse
is defined as a serious work-related injury or illness that resulted in a effect on our business. Our security risk mitigations follow the principles
fatality or a permanent impairment, which is defined as a long-term or of "deter, detect, delay and respond". We strengthen the security of our
permanent injury or illness with a significant impact on daily activities. assets, people and operations to reduce our exposure as appropriate,
SIF-F is calculated by dividing the number of employee and contractor for example, by conducting site security risk assessments, using journey
SIF by 100 million working hours. SIF-F enables us to focus our management plans and performing travel risk assessments. We also
investigations on the most serious incidents. The aim is to collect invest in information risk management capabilities and crisis
and analyse relevant, high-quality data that can help us improve management and business continuity measures.
our efforts to prevent serious injuries and fatalities.
Shell is a member of the Voluntary Principles on Security and Human
In 2024, the number of serious work-related injuries or illnesses, Rights (VPSHR), a multi-stakeholder initiative that gives guidance on
including those that resulted in fatality or permanent impairment, how to respect human rights while providing security for business
decreased to 7 from 12 in 2023. The SIF-F was 1.5 cases per 100 operations. We implement this guidance within our own operations,
million working hours compared with 2.6 in 2023. concentrating on countries where the risks of working with government
and private security providers are identified as greatest.
For reporting on process safety, we combine Tier 1 and 2 events. A Tier
1 process safety event is an unplanned or uncontrolled release of any
material from a process, including non-toxic and non-flammable
materials, with the greatest actual consequence resulting in harm to
employees, contract staff or a neighbouring community, damage to
equipment, or exceeding a defined threshold quantity. A Tier 2
process safety event is a release of lesser consequence.

124 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year

Living by our values

Our core values of honesty, integrity and respect for people, as Ethics and compliance
well as our focus on safety and sustainability are critical to our Shell's Ethics and Compliance Manual defines the detailed
strategy. We are committed to doing business in an ethical and requirements for our businesses and functions to comply with laws
transparent way. on anti-bribery and corruption, anti-money laundering, preventing the
facilitation of tax evasion, antitrust, data privacy and trade compliance.
Ethics and transparency
Our core values underpin our work with employees, customers, Our employees receive guidance on the requirements listed in our
investors, contractors, suppliers, non-governmental organisations, the Ethics and Compliance Manual -- including via a dedicated website,
communities where we operate and others. The Shell General Business and training modules where completion is monitored -- which is
Principles (SGBP), Code of Conduct, and Ethics and Compliance reinforced by messages from Shell leaders on these requirements. This
Manual are designed to help everyone at Shell to act in line with our manual also includes the Protect Shell Policy, which explains Shell's
values. The Chief Ethics and Compliance Officer (CECO) reports to the position on managing antitrust risks in engagements with parties
Shell Legal Director. The CECO is the custodian of Shell's Code of external to Shell. In response to fast-moving external antitrust
Conduct, and oversees ethics and compliance activities. developments and trends, internal guidance is continually being
monitored to ensure that it remains relevant.
Shell General Business Principles
The SGBP set out our responsibilities to shareholders, customers, The type and depth of training is dependent on the level of risk.
employees, business partners and society. They set the standards for Training is repeated every three years, or more frequently for positions
how we conduct business with integrity, care and respect for people. where the risk exposure is higher. Those considered to be higher
As part of these principles, we commit to contribute to sustainable risk for exposure to bribery include, but are not limited to, persons
development. All Shell employees and contractors, and those working involved in procurement and contracting, new business development
at joint ventures we operate, are expected to behave in line with these and engaging with government officials. Shell Internal Audit and
principles. We undertake a range of activities to help embed the SGBP Investigations (SIAI) conducts risk-based audits of potential ethics and
and the Code of Conduct throughout the organisation. This includes compliance issues across its operations in support of our Group-wide
training and encouraging people to discuss the dilemmas they face in ethics and compliance programme.
their work.
To help manage antitrust, competition, anti-bribery, tax evasion, anti-
Code of Conduct money laundering and trade compliance risks with adequate resources
Our Code of Conduct explains how employees, contractors and we maintain risk-based compliance programmes, a comprehensive
anyone else acting on Shell's behalf must behave to live up to our governance structure, established reporting lines and policies and
business principles. It addresses key topics including safety, anti-bribery procedures, including mandatory due diligence, counterparty-screening
and corruption, fair competition and human rights. and regular risk assessments.

Shell employees, contractors and third parties with whom Shell has a Compliance in our Trading and Supply business
business relationship can report any potential breaches of the Code of We maintain a Trading Compliance function managed by a Chief
Conduct confidentially through several channels, including Compliance Officer, as regulated by the UK Financial Conduct
anonymously through a global helpline operated by an independent Authority, the US Commodities Futures Trading Commission and the
provider. We maintain a stringent no retaliation policy to protect any Securities Commission of The Bahamas, with adequate resources,
person making an allegation in good faith. This protection extends to including employees and a budget; a comprehensive governance
those who participate in or conduct an investigation. We investigate structure, controls, policies and procedures and established reporting
allegations of potential violations of the Code of Conduct or applicable lines. Employees in Shell's trading organisation receive clear guidance
laws promptly and independently of the management line concerned. through the Code of Conduct; the organisation's Trading and Supply
Compliance Manual, supplemented with specific policies; a specific
In 2024, there were 2,025 reports to the Shell Global Helpline. We compliance website; mandatory training modules where completion
confirmed 343 breaches of the Code of Conduct, 367 employees is monitored; and other relevant training.
or contractors were subject to disciplinary action, and of those 110
people were dismissed. Confirmed breaches include cases in which
an allegation received in 2024 or a prior year was substantiated
and closed.

125 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Living by our values continued

Shell leaders reinforce the importance of managing compliance and

conduct risk in the trading organisation through monitoring risk metrics,
reporting to compliance risk management and governance committees,
setting clear expectations via townhall meetings and other channels,
and enforcing consequences for non-compliance.

Shell's Trading Compliance function has systems for trade surveillance

and monitoring communication, in addition to a dedicated conduct and
ethics investigation function to assess breaches of non-compliance and
thematic trends.

Data protection
With regard to the protection of personal data, we continue to invest in
and develop a mature and robust privacy compliance programme
based on our Binding Corporate Rules (BCRs). Every Shell company is
required to manage personal data in a professional, ethical and lawful
manner. We have a robust "privacy by design" process, which includes
the monitoring of data privacy regulations, to help ensure that
necessary controls are built into our IT systems and solutions to protect
personal data.

Shell's Chief Privacy Officer serves as the Data Protection Officer (DPO)
under the EU's General Data Protection Regulation (GDPR) and other
applicable data privacy laws, except where there is a requirement to
have a locally based DPO, such as in China and the Philippines.

We monitor new data privacy legislation and seek to ensure we have

a robust impact assessment process in place for the relevant businesses.
We design our operations and processes based on relevant data
privacy requirements and we build controls into our processes and
practices which cover the handling of personal data.

We maintain a Group-wide incident management process designed to

identify and remediate data privacy breaches. The process also helps us
to comply with country-level requirements for reporting breaches. Some
of our acquired companies are not yet in full compliance with our BCRs.
Following assessments for each of those companies, specific actions are
planned and put in place to achieve compliance, with regular updates
made on their progress to management.

Reputation and brand

We continually assess and monitor the external environment for
potential risks to our reputation. We engage in dialogue with our key
stakeholders, such as investors, industry and trade groups, academics,
governments and non-governmental organisations to gain greater
insights into societal expectations of the Shell Group. We make efforts
to explain to our stakeholders what the Company is doing and why,
the validity of our energy transition targets and our progress towards
meeting them. We take proactive steps when appropriate through
legal means to protect our reputation from unwarranted accusations.

126 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year

Our approach
to sustainability
Our commitment to contribute to sustainable development has been
part of the Shell General Business Principles since 1997. We have
Governance
embedded this sustainability commitment into our strategy, business
Board oversight of sustainability including
processes and decision-making, supported by comprehensive
climate-related impacts, risks and opportunities
governance structures, policies and standards.
Our governance framework is designed to effectively deliver our
strategy, which is to deliver more value with less emissions, while
Our approach to sustainability takes into account the impacts, risks
powering lives and respecting nature.
and opportunities related to climate, nature, safety, ethics, people and
communities -- from the global to the local level. For 2024 progress in
each of these areas, refer to the Our journey to net zero, Respecting See "Our strategy" on pages 10-13.
nature, Powering lives, Safety, and Living by our values sections.
We describe Shell's overall governance framework on pages 159-160
In anticipation of the transposition by the Netherlands of the EU and provide information on the roles of the Board of Directors, Board
Corporate Sustainability Reporting Directive (CSRD) into national Committees and the Executive Committee (EC).
law, a key development for Shell in 2024 has been the voluntary
implementation of the CSRD and the accompanying European
See "Sustainability including climate governance" on page 129.
Sustainability Reporting Standards (ESRS). The CSRD requires certain
European and non-European companies (including Shell plc due to its
listing on Euronext Amsterdam) to make disclosures on environmental,
The Board has primary oversight of the delivery of Shell's strategy and
social and governance topics in accordance with reporting standards
monitors performance against our longer-term business targets. This
set out in the ESRS.
includes the management of sustainability-related impacts, risks and
opportunities.
For the first time, in the Annual Report and Accounts 2024, Shell
includes a Sustainability Statements section (pages 341-440),
The Board periodically reviews our energy transition plans and
prepared on a voluntary basis in accordance with the CSRD and ESRS.
oversees their implementation and delivery. In March 2024, Shell
The Sustainability Statements incorporates Shell's EU Taxonomy
published the updated Energy Transition Strategy 2024, as endorsed
disclosure, which we have published on voluntary basis since 2021. The
by the Board, which included our four climate targets and ambition.
Sustainability Statements section forms an integral part of the
The progress on these longer-term climate-related targets and ambition
consolidated management report [A]. With the introduction of the
can be found in "Climate-related metrics and targets" on pages 93-106.
Sustainability Statements, we have retired our voluntary Sustainability
Report after 27 years.
In 2024, the Board considered sustainability-related matters
[A] The consolidated management report, as referenced in the CSRD, includes the Strategic throughout the year, such as the assessment of sustainability-related
Report and Governance sections of the Annual Report and Accounts. risks and the effectiveness of corresponding risk management activities.
The Board also challenged and endorsed business plans, with
consideration of major capital expenditures, acquisitions and
divestments. In 2024, the Board convened nine times and continued
to oversee our strategy and sustainability initiatives, including at the
Board off-site days in June 2024.

The nature of topics discussed by the Board in 2024 can be found

in "Board activities" on pages 161-164. A full description of
sustainability-related principal risks can be found in the "Risk factors"
on pages 134-144.

Photo: Shell's Board of Directors visited Raízen facilities in Brazil in April 2024.

127 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our approach to sustainability continued

Board committees Supporting governance committees

The Board is supported by four standing committees: the Sustainability There are three key supporting management committees, with
Committee (SUSCO), the Remuneration Committee (REMCO), the representatives from across Shell, which play a critical role in
Audit and Risk Committee (ARC), and the Nomination and Succession driving sustainability-related elements of our strategy. These committees
Committee (NOMCO). Sustainability-related matters are considered each have direct lines of reporting to the Board and its committees.
by the Board or the relevant committee, as appropriate. Committees, ￮ The Capital Investment Committee (CIC) facilitates portfolio
comprising Non-executive Directors, provide regular updates to the management and capital allocation decisions, and reviews each
Board, including from committee meetings and stakeholder investment opportunity that is, due to its size or risk profile, subject
engagements. to approval by the CEO or the Board. These reviews ensure that
risk-reward trade-offs and other defined criteria (including carbon
The SUSCO reviews the performance of Shell with respect to emissions impacts) are embedded in investment decision-making. The
sustainability and the non-financial elements of Shell's strategy, with a CIC is sponsored by the CEO and is accountable to the Board. This
focus on nature and social elements. The SUSCO also reviews selected committee is made up of senior executives, including the CEO, CFO
sustainability topics and matters of public concern. The SUSCO met and individual business directors.
four times in 2024 with sustainability-related matters discussed at each ￮ The Carbon Reporting Committee (CRC) is sponsored by the CFO
meeting. Details on focus areas and meetings in 2024 can be found in and includes senior management representatives focusing on
the SUSCO report on page 175. climate-related matters from across the businesses, Projects &
Technology climate-related disciplines, and functions including
The REMCO develops the remuneration policy and schemes for Finance, Legal and Strategy. The CRC is responsible at the Group
Executive Directors, EC members and the majority of Shell's employees, level for the Carbon Reporting Control Framework, the calculation
and sets performance conditions designed to challenge and support methodologies and reporting of GHG emissions metrics, and the
the EC in meeting our strategy of more value with less emissions, while review and approval of external GHG-related disclosures to ensure
respecting nature and powering lives. The REMCO met five times compliance.
during 2024, with sustainability-related matters relevant to ￮ The Sustainability Management Committee (SMC), established in
remuneration being regularly addressed. Details of the REMCO's focus October 2024, is sponsored by the CFO and includes senior
areas and meetings in 2024 can be found in the Directors' management representatives with exposure to material sustainability
Remuneration Report on pages 188-190. areas from the businesses and functions, including Supply Chain,
Finance, Legal and Human Resources. The SMC aims to provide an
The NOMCO leads the process for appointments to the Board and integrated approach to sustainability by addressing cross-directorate
Senior Management and oversees the development of a diverse risks and dilemmas, and driving the co-ordination, simplification and
succession line of candidates. The NOMCO also reviews the performance improvement of nature and social sustainability topics,
Company's policy, targets and strategy on diversity, equity and focusing on regulatory compliance and value protection and
inclusion (DE&I), and monitors the effectiveness of these initiatives. The creation. The SMC will also maintain a forward view on emerging
NOMCO met four times, with sustainability-related matters regularly themes to ensure Shell's future competitiveness and resilience
addressed. Details on the NOMCO's focus areas and meetings in through the energy transition.
2024 can be found in the NOMCO report on pages 171-174.
In addition to these committees, our network of country chairs supports
The ARC assists the Board in fulfilling its oversight responsibilities in the overall governance, development and deployment of sustainability-
areas such as the effectiveness of our risk management and internal related initiatives. They facilitate the setting of each country's plans and
controls. The ARC also provides oversight in respect of material non- their engagement with external stakeholders in support of our strategy.
financial reporting disclosures with respect to corporate sustainability
as applicable to the Company's annual reports, half-yearly reports and Business assurance
quarterly results releases. Significant issues identified by the business or Each EC member must submit an annual assurance letter to the CEO
functional owners are escalated to and reviewed by the ARC as that their business or function's activities have been conducted
required. The ARC met six times in 2024, with sustainability-related in accordance with the requirements set out in our Commitment and
matters regularly addressed. Details on the ARC's focus areas and Policy on Health, Safety, Security, Environment & Social Performance
meetings in 2024 can be found in the ARC report on pages 176-187. (HSSE & SP) and our Safety, Environment and Asset Management
(SEAM) Standards. This assurance includes an assessment of the
Performance and remuneration effectiveness of our internal controls in managing sustainability-
Our remuneration schemes, including the annual bonus and long-term related risks.
incentive awards, are designed to support Shell in achieving our
strategy. Almost all employees participate in the annual bonus scheme. Independent assurance
Executive Directors, senior executives and certain key employees Shell Internal Audit and Investigations (SIAI) provides independent
participate in the long-term incentive awards, which aim to retain and assurance of sustainability-related risks as part of its broader mandate
ensure recipients have a greater investment in Shell's future. and advises management and the Board on the effectiveness of
internal controls. For further information, see "Internal Audit" on
In respect of 2024 outcomes, Shell's safety and energy transition- page 184.
related performance metrics each form 15% of the annual bonus
scorecard. A metric for "Shell's journey in the energy transition" forms
20% of the long-term incentive awards for Executive Directors and
senior executives and 10% for all other employees.

The remuneration schemes are all linked to sustainability elements,

including climate and safety. The Directors' Remuneration Report
provides further details on key sustainability-related performance
indicators.

128 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our approach to sustainability continued

Management's role in assessing and managing sustainability including climate-related impacts,

risks and opportunities

Sustainability including climate governance

[A] See pages 157-158 for details of changes to the Executive Committee.

129 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our approach to sustainability continued

Processes by which management is informed about

sustainability including climate-related issues
Policies and standards
We have several processes to help ensure that management teams can
Our commitment to contribute to sustainable development has been
effectively monitor and manage sustainability matters. Our response to
part of the Shell General Business Principles (SGBP) since 1997. These
the evolving risk outlook requires transparency and clarity around our
principles are supported by our Code of Conduct, which describe the
plans and actions to achieve our sustainability targets.
behaviours expected of our employees with regard to sustainability-
related matters including health, safety, security, environment and
We have established a number of policies, standards, frameworks,
social performance (HSSE & SP), human rights and equal opportunities.
internal forums and capability development programmes related to
sustainability, climate change and the energy transition. These are
The Shell Performance Framework (SPF) is the overarching framework
employed at all levels of the organisation and seek to monitor,
adopted by Shell to deliver on its strategy and business objectives. It
manage and review sustainability issues.
applies to all Shell companies and provides a consistent approach for
how each company in Shell operates. This framework includes our risk
Each business and function regularly reviews its risk profile, risk
management and internal control procedures to support adherence
responses and assurance activities throughout the year to ensure
to the SGBP and Code of Conduct.
sustainability-related risks are effectively addressed and managed.
These reviews and insights are also used to provide management with
regular updates on the operational management of sustainability and See "Living by our values" on pages 125-126 and "Shell Performance Framework" on

to help us to update our plans and guide our day-to-day operational page 221.

decisions and our risk response plans.

Shell's policies and standards aligned with the Shell Performance Framework (SPF)

Commitment and Policy on HSSE & SP We seek to avoid HSSE impacts and risks where we are able to. We
The Shell Commitment and Policy on HSSE & SP is a set of core follow requirements set out in our SEAM Standards to develop suitable
principles intended to ensure the health and safety of our workforce, governance structures and mitigation strategies aimed at ensuring that
minimise environmental impact, respect our neighbours and contribute if an HSSE risk materialises, we avoid the worst possible consequences
to sustainable development. and have ways to remediate any environmental damage. For example,
requirements in the SEAM Standards describe the key controls to be
SEAM Standards implemented to ensure safe production and equipment care, and the
We have implemented the Commitment and Policy on HSSE & SP type of skills and training that are required for relevant staff.
into a set of five standards under the SPF collectively referred to as
the Safety, Environment and Asset Management (SEAM) Standards. Each project, asset or business is accountable to assess which
The SEAM Standards require the businesses, projects and assets we mandatory requirements are relevant based on their objectives, risk
operate to identify and manage impacts, risks and opportunities so profile and activities, and apply these via their local management
their activities can be carried out in a safe, environmentally responsible system. The requirements are designed to be outcome-based -- meaning
and consistent way. they define the desired results and allow the business to determine a fit-
for-purpose process to achieve them. They are supported by practice
documents, which share best practices for implementation, as well
as assurance protocols to assist in testing the health of controls.

130 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our approach to sustainability continued

The requirements align with industry standards where practicable. executive for the relevant business, asset or function. Permanent
Where applicable, we follow the most stringent of either our SEAM exceptions are reviewed on an annual basis and are subject to
Standards or local regulations. In some cases, where no local conditions.
regulation exists, our standards set mandatory requirements
based on internationally accepted standards or practices. The SEAM Standards came into effect in July 2024, replacing the
former HSSE & SP Control Framework and Asset Management System
Requests for exceptions from the SEAM Standards must be reviewed (AMS). The five SEAM Standards are described below.
and advised on by subject matter experts and authorised by a senior

SEAM Standards

HSSE & SP and Asset Management Foundations Workplace Health, Safety, and Security
This standard includes requirements intended to manage the common This standard is about protecting workers involved in our activities from
elements of our processes and management systems. This includes our potential health and safety hazards that may cause harm to them or
assurance processes, HSSE & SP risk management practices, impact others. It includes worker welfare and labour rights, and contains
assessments, contractor HSSE management, performance monitoring requirements intended to protect our people and assets from
and reporting, and learning and improvement, among others. adversarial activities.

Carbon, Environment, Social Performance, Product Process Safety and Asset Management
Stewardship and Quality This standard is about keeping hazardous substances contained in
This standard includes managing our decarbonisation targets, wells, pipes, tanks and vessels. In the SEAM Standards, we have
protecting biodiversity, preserving water quality, improving air quality integrated Asset Management work processes with Asset Integrity-
and increasing circularity. It also covers the mitigation of social impacts Process Safety Management, which streamlines requirements and
arising from our business activities and management of any adverse recognises the alignment of operating safely and optimising production
effects of the products we make, buy, sell or handle. in our assets.

See "Our journey to net zero" on page 80, "Respecting nature" on page 109 and Transport Safety
"Powering lives" on page 114. This standard is about reducing the safety risks posed during transport
of people, products and materials by road, rail, sea or air.

See "Safety" on pages 122-124.

131 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our approach to sustainability continued

Acquisitions and divestments

Sustainability impact, risk and opportunity Shell considers new business investment opportunities and divesting
management from existing opportunities in all relevant contexts including regulations,
We use two key processes for assessing and managing sustainability and alignment with our strategy. Sustainability
sustainability including climate-related impacts, risks and considerations, including emissions, are considered during the due
opportunities — Impact Assessments and the Hazards and Effects diligence process and in negotiations for material acquisitions and
Management Process (HEMP). These are covered in the HSSE & divestments. Comprehensive stakeholder engagement plans are
SP and Asset Management Foundations Standard in alignment developed, as appropriate, in parallel to the negotiations.
with our broader risk management practice in the SPF. For more
information on our risk management processes, see "Risk We take care to invest and divest responsibly and screen our
management" on page 134. transactions against multiple criteria. Before acquiring or divesting a
business, we assess the counterparty's financial strength; operating
When planning projects, we conduct impact assessments, which culture; policies governing HSSE & SP; ethics and compliance; and,
help us to identify and assess a project's potential impact on the where relevant, the effectiveness of its social performance programmes.
environment, people and communities. Once identified, we apply
a mitigation hierarchy, which is a sequence of actions to manage Within each divestment proposal, we consider if the potential
potential impacts and risks. For example, in a biodiversity context purchaser has the capability to manage the assets and surrounding
we seek to avoid, minimise, restore and offset. environment. When we divest assets or exit areas, we apply well-
established processes to guide our risk assessment and the transition of
HEMP is applied to identify, assess and manage HSSE & SP risks sustainability-related responsibilities and commitments, including those
in our projects and operations. This systemic approach starts relating to health, safety, security and environment. Where applicable,
with the identification of potential hazards (such as working at we also share our emissions reduction plans with the purchaser in
heights) and evaluation of their likelihood and potential impact. relation to compliance with regulations and commitments, for the
We then implement controls (such as fall protection) to reduce purchaser's consideration.
the risks to as low as reasonably practicable (ALARP). In doing
this, we apply the hierarchy of controls, which prioritises the Decommissioning and restoration
elimination, substitution and isolation of hazards, before Decommissioning is part of the normal life cycle of every asset or
implementing engineered safeguards, administrative controls operation. We aim to abandon wells and decommission installations in
and personal protective equipment. We monitor the a safe, efficient, cost effective and environmentally responsible manner
effectiveness of these controls via regular assurance activities. while meeting regulatory requirements. This includes restoring the
surroundings of these installations in line with relevant legislation, while
taking our own environmental standards into account. We seek to
reuse, repurpose and recycle materials in decommissioning. Current
Non-operated ventures and non-current decommissioning liabilities and other provisions are
More than half of Shell's joint ventures are not operated by accounted for on our balance sheet.
Shell. As per our SGBP, Commitment and Policy on HSSE & SP
and our joint venture requirements in the HSSE & SP and Asset
See Note 25 to the "Consolidated Financial Statements" on page 297.
Management Foundations Standard, we request non-operated
ventures (NOVs) to apply policies and principles materially
equivalent to our own and, in relation to particular (higher
impact) risks implement materially equivalent standards or Working with others
standards acceptable to us. We do not have direct control over
how these ventures embed sustainability in their operations, but Shell understands the need to work with others to achieve our
we do seek to influence and offer support. We periodically commercial, environmental and social goals. We engage with local
evaluate the sustainability including climate-related impacts, risks communities and other stakeholders in all our activities. We listen to
and opportunities within our NOVs, and if an NOV does not their ideas and the concerns they might have so these can be
meet our expectations, we seek to influence them to implement addressed in the design and operation of our assets.
performance improvement plans.
Shell participates in external collaborations, industry associations
and partnerships. We do this in compliance with antitrust rules and
Sustainability including climate through the life cycle regulations. These engagements are a proven way to learn and share
Our principles, policies and standards regarding sustainability, best practices, achieve specific objectives and build trust with the many
including climate, extend across the entire lifespan of a project or the different stakeholders who have an interest in Shell. Our key
facility -- from initial design and construction or acquisition to operation sustainability, including climate, partnerships include the International
over many years and, finally, divestment or decommissioning. Union for the Conservation of Nature (IUCN), Ipieca (the global oil
and gas industry association for advancing environmental and social
performance across the energy transition), the Energy Transitions
Commission (ETC), Business for Social Responsibility (BSR) and World
Business Council for Sustainable Development (WBCSD). These
organisations, and many others, help inform our thinking on sustainability
including climate-related risks, opportunities and good practices.

132 Shell Annual Report and Accounts 2024

Strategic Report | Performance in the year | Our approach to sustainability continued

Non-Financial and Sustainability Information Statement

The table below constitutes Shell's Non-Financial and Sustainability Information Statement, produced to comply with sections 414CA and 414CB
of the Companies Act 2006 (as amended by The Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022).

Non-Financial and Sustainability Information Statement

Reporting requirement Where to read more in this Report Page

Business model Our strategy 10
Non-financial KPIs Performance indicators 18
Environmental matters Our journey to net zero 76
Respecting nature 109
Sustainability and climate change and TCFD disclosures Our journey to net zero 76
Employees Powering lives 114
Directors' Remuneration Report 188
Social matters Powering lives 114
Respect for human rights Powering lives 114
Anti-corruption and anti-bribery matters Living by our values 125
Risk Risk management and risk factors 134
Our journey to net zero 76
Audit and Risk Committee Report 176

Task Force on Climate-related Financial Disclosures (TCFD)

Shell supports the recommendations of the TCFD. In accordance with the UK Listing Rule 6.6.6R, and set out below, we report our climate-related
financial disclosures consistent with all the TCFD Recommendations and Recommended Disclosures [A]. We also consider relevant supplemental
guidance including, for example, the TCFD's additional guidance "Implementing the Recommendations of the Task Force on Climate-related
Financial Disclosures" (also known as the 2021 TCFD Annex) published in October 2021 by the TCFD. We continue to align and enhance
our climate-related disclosures.

TCFD disclosures index

TCFD Pillars TCFD Recommendations Reference

Governance Describe the board's oversight of climate-related risks and Board oversight of sustainability including climate-related risks and
opportunities opportunities is described on page 149.
Describe management's role in assessing and managing climate- Management's role in assessing and managing sustainability including
related risks and opportunities climate-related risks and opportunities is described on page 129.

Strategy Describe the climate-related risks and opportunities the See page 80.
organisation has identified over the short, medium and long term
Describe the impact of climate-related risks and opportunities on See page 85.
the organisation's business, strategy, and financial planning
Describe the resilience of the organisation's strategy, taking into See page 86.
consideration different climate-related scenarios, including a 2°C
or lower scenario

Risk Describe the organisation's processes for identifying and assessing Descriptions of the company's processes used to identify and assess
Management climate-related risks risks, including climate-related risks, can be found on page 134 under
the paragraphs "Risk identification" and "Risk assessment".

Describe the organisation's processes for managing climate- Descriptions of the company's processes used to manage risks, including
related risks climate-related risks, are described on page 134 under the paragraphs
"Risk Response" and "Management and Board risk reviews".

Describe how processes for identifying, assessing, and managing Our climate-related risk management process follows the approach set
climate-related risks are integrated into the organisation's overall out by the Shell Performance Framework, ensuring that it is integrated
risk management into the Company's overall risk management processes, and is described
on page 134 in the section "Risk Management".

Metrics and Disclose the metrics used by the organisation to assess climate- See page 94.
Targets related risks and opportunities in line with its strategy and risk-
management process

Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 See page 94.

greenhouse gas (GHG) emissions, and the related risks

Describe the targets used by the organisation to manage climate- See page 101.
related risks and opportunities and performance against targets

Information that supports TCFD disclosures is indicated with .

[A] By this we mean the four recommendations and the 11 recommended disclosures set out in Figure 4 of Section C of the report entitled "Recommendations of the Task Force on Climate-related
Financial Disclosures" published in June 2017 by the TCFD.

133 Shell Annual Report and Accounts 2024

Strategic Report

Risk management
To support risk assessments, we also seek to establish and articulate
our risk appetite, which is the level of risk that we are willing to accept
in pursuit of Shell's strategy and objectives. We consider the resources
available – such as financial resources, people, processes, systems and

and risk factors controls – that we are willing and able to allocate to manage each risk
in pursuit of our objectives and the impact on Shell's overall risk profile.
The financial framework, which shapes Shell's financial resilience, sets
an overarching boundary condition for risk appetite. The impact and
likelihood assessments, combined with risk appetite, determine the type
Risk management of risk responses, such as controls and assurance activities, that may be
required to manage each risk. The impact and likelihood assessments
How we manage risks
also help us to prioritise risks by understanding their significance to our
The Board is responsible for establishing and maintaining procedures
strategy and objectives, individually and relative to other risks.
to manage risk, overseeing the internal control framework, and
determining the nature and extent of the principal risks that Shell
Risk response
is willing to take to achieve its long-term strategic objectives.
Risk responses are developed based on the assessment of impact,
likelihood and risk appetite.
Our approach to managing risk sits at the heart of the Shell
Performance Framework and is embedded in the Improvement Cycle
Possible responses include:
which integrates performance management, risk management, learning
￮ taking the risk while using appropriate processes and controls to
and improvement. This approach is designed to manage rather than
maintain the risk within risk appetite. These processes and controls
eliminate the risk of failure to achieve our business objectives and
include, for example, the requirements and guidance in the Shell
covers the areas below.
General Business Principles, Code of Conduct and our Group
Standards, which establish the mandatory rules that are to be
See Shell Performance Framework on page 220. applied in all Shell companies and operations;
￮ transferring the risk, for example to insurance providers where
appropriate; and
Risk identification ￮ avoiding the risk, by stopping or exiting the activity that gives rise
We employ different methods to identify risks. These include monitoring to the risk or doing the activity differently.
external developments, such as policy changes and new regulations.
We also assess changes in the internal operating context, such as We use assurance activities to objectively assess the effectiveness of
monitoring incidents that have occurred across our activities to our risk management activities and to improve them.
determine if these could give rise to new risks.
Emerging risks
We seek to identify and define risks across the spectrum of strategic, Management and the Board also consider emerging risks. These are
operational, conduct and culture risks. With strategic risks, we consider defined as risks where the scope, impact and likelihood are still
the current and future portfolio, examining parameters such as country uncertain, but which may have a significant effect on achieving Shell's
concentration or exposure to higher-risk countries. We consider long- strategy and objectives in the future. These are identified through the
range developments to test key assumptions or beliefs in relation to monitoring of external developments, the status of risk indicators,
energy markets. When assessing operational risks, we consider learnings from incidents and assurance findings, and the appraisal of
exposures across our value chain. Through conduct and culture risks, Shell's forward-looking plans. Once identified, we undertake activities
we consider how our policies and practices align with our purpose, to monitor, prepare for and plan appropriate responses, should
core values and desired mindset and behaviours. such emerging risks occur.

These perspectives help us to maintain a comprehensive view of the In 2024, management and the Board considered the pace and
different types of risks we face and the different time horizons during evolution of technological developments in areas such as artificial
which they may affect us. intelligence and quantum computing as emerging risks, given their
potential impacts, for example, on cyber security and data protection.
Risk assessment The Board also considered the risks of the evolving landscape of
To further understand the risks we face, we evaluate the impact and geopolitical tensions for the Group.
likelihood of each risk occurring.
Management and Board risk reviews
When assessing the potential impact of a risk, we consider its Throughout the year, each business and function regularly reviews
materiality in terms of the possible financial consequences. We also its risk profile, risk responses and assurance activities to ensure
consider the impacts on people, the environment and the community that significant risks are managed effectively.
where we operate, our reputation and our ability to comply with
external regulations. For example, the technical complexity of our The Board, Board committees and management also regularly review
operations gives rise to safety risks, which could result in injuries, Shell's principal risks or risk factors, conducting deeper dives on
loss of life, environmental harm and financial losses. individual risks, as appropriate. These reviews also support management
in assessing the effectiveness of existing risk management activities, and
When assessing the likelihood of a risk occurring, we consider several whether changes may be needed.
factors, such as the level of risk exposure, our ability to prevent the risk
happening and whether the risk has occurred in the past.
See "Other regulatory and statutory information" on pages 216-223 for other Board and
Board committee responsibilities on risk management.

134 Shell Annual Report and Accounts 2024

Strategic Report | Risk management and risk factors continued

Risk factors
The risks discussed below could have a material adverse effect Further background on each risk is set out in the relevant sections of this
separately, or in combination, on our earnings, cash flows and Report, indicated by way of cross references.
financial condition. Accordingly, investors should carefully
consider these risks.

1. Portfolio risks Risk type: Strategic risk Operational risk Conduct and culture risk

We are exposed to risks that could adversely affect the resilience of our overall portfolio of businesses. These include
external risks such as macroeconomic risks, including fluctuating commodity prices and competitive forces. Our future
performance depends on the successful development and deployment of new technologies that provide
new products and solutions. In addition, our future hydrocarbon production depends on the delivery of integrated
projects and our ability to replace proved oil and gas reserves. Many of our major projects and operations are
conducted in joint arrangements or with associates. This could reduce our degree of control and our ability to identify
and manage risks.
Risk description
We are exposed to various external risks, such as macroeconomic and competitive risks, and internal risks associated with growing and maturing
our business opportunities through our portfolio of businesses and joint arrangements, as follows:
Macroeconomic risks:
￮ The prices of crude oil, natural gas, oil products and chemicals can be volatile and are affected by supply and demand, both globally and
regionally. Factors that influence supply and demand include operational issues; natural disasters; pandemics; political instability; conflicts, such
as the Russia-Ukraine war and the conflict in the Middle East; economic conditions, including inflation; and actions by major oil and gas
producing countries. These have in the past resulted in, and similar events could in the future result in, material price fluctuations. In addition,
macroeconomic, geopolitical and technological uncertainties have affected, and could affect in the future, production costs and demand for our
products. Government actions may affect the prices of crude oil, natural gas, oil products and chemicals. These include price caps on gas,
tariffs, the promotion of electric vehicle sales or the phasing-out of future sales of new diesel or petrol vehicles. Oil and gas prices have moved
independently of each other and could do so in the future.
￮ Under high oil and gas prices, our entitlement to proved reserves under some production-sharing contracts has been, and could be in the
future, reduced. Higher prices could also reduce demand for our products which could result in lower profitability in certain businesses in the
Group, particularly in our Chemicals and Products, and Marketing businesses. Some of the reduction in demand could be permanent. Higher
prices can also lead to more capacity being built, potentially resulting in an oversupplied market which would negatively affect our businesses.
In the past, a high oil and gas price environment has generally led to sharp increases in costs and this could happen in the future.
￮ In a low oil and gas price environment, we have generated, and could in the future again generate, less revenue from our Upstream and
Integrated Gas businesses, and parts of those businesses could become less profitable or incur losses. Low oil and gas prices have also resulted,
and could result in the future, in the debooking of proved oil or gas reserves, if they become uneconomic in this type of price environment.
Prolonged periods of low oil and gas prices, or rising costs, have resulted, and could result in the future, in projects being delayed or cancelled.
Assets have been impaired in the past, and there could be impairments in the future. Low oil and gas prices have affected, and could affect in
the future, our ability to maintain our long-term capital investment and shareholder distribution programmes.
￮ We use a range of commodity price and margin assumptions to evaluate the robustness of our capital allocation across our different projects
and commercial opportunities. Due to volatility in macroeconomic conditions, our assumptions have proven to be incorrect in the past, yielding
returns that are less than what we planned, and could prove incorrect in the future.
Competitive risks:
￮ We face competition in all our businesses. We seek to differentiate our services and products, though many of our products are competing in
commodity-type markets. Accordingly, a failure to manage our costs and our operational performance could result in a material adverse effect
on our earnings, cash flows and financial condition. We also compete with state-owned hydrocarbon entities and state-backed utility entities
with access to financial resources and local markets. Such entities could be motivated by political or other factors in making their business
decisions and may not require competitive returns. Accordingly, when bidding on new leases or projects, we could find ourselves at a
competitive disadvantage or unable to obtain competitive returns.
Technology risks:
￮ Technology and innovation are essential to our efforts to help meet the world's energy demands competitively. If we fail to effectively develop
and/or deploy new technology, products and solutions, there could be a material adverse effect on the delivery of our strategy. We operate
in environments where advanced technologies are used. In developing new technologies, products and solutions, unknown or unforeseeable
technological failures or environmental and health effects could harm our reputation and licence to operate or expose us to litigation or
sanctions. The associated costs of new technology are sometimes underestimated. We have faced delays in developing new technology in the
past, and such delays could happen again in the future. If we are unable to develop our technology and products in a timely and cost-effective
manner, we may fail to realise commercially viable products.

135 Shell Annual Report and Accounts 2024

Strategic Report | Risk management and risk factors continued

Delivery of capital projects and our ability to replace proved oil and gas reserves:
￮ We face numerous challenges in developing capital projects, especially those which are integrated. Challenges include: uncertain geology;
frontier conditions; drilling at significant depths, the existence and availability of necessary technology and engineering resources; supply chain
constraints; the availability of skilled labour; the existence of transport infrastructure; the expiration of licences; project delays, including delays
in obtaining required permits; potential cost overruns; and technical, fiscal, regulatory, political and other conditions. We may fail to assess or
manage these and other risks properly. Such potential obstacles have impaired, and could in the future impair, our delivery of these projects,
our ability to realise the full potential value of the project as assessed when the investment was approved, and our ability to fulfil related
contractual commitments. This has led, and could in the future lead, to impairments.
￮ Our future oil and gas production depends on our access to new proved reserves through exploration, negotiations with governments and other
owners of proved reserves and acquisitions, and through developing and applying new technologies and recovery processes to existing fields.
A failure to replace proved reserves would result in an accelerated decrease of future production.

Oil and gas production available for sale

Million boe [A]
2024 2023 2022
Shell subsidiaries 956 937 938
Shell share of joint ventures and associates 82 82 108
Total 1,038 1,019 1,046

[A] Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel.

Proved developed and undeveloped oil and gas reserves [A][B]

Million boe [C]
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022
Shell subsidiaries 8,156 8,283 8,317
Shell share of joint ventures and associates 1,464 1,504 1,261
Total [D] [E] [F] 9,620 9,787 9,578
Attributable to non-controlling interest of Shell subsidiaries 370 378 365

[A] We manage our total proved reserves base without distinguishing between proved reserves from subsidiaries and those from joint ventures and associates.
[B] Includes proved reserves associated with future production that will be consumed in operations.
[C] Natural gas volumes are converted into oil equivalent using a factor of 5,800 scf per barrel.
[D] On March 13, 2025, Shell completed the sale of its Nigerian onshore subsidiary The Shell Petroleum Development Company of Nigeria Limited (SPDC) which holds a 30% interest in the
SPDC JV to Renaissance. As of December 31, 2024, Shell had proved reserves of 453 million boe in SPDC.
[E] Pursuant to Shell's 2017 agreement with Canadian Natural Resources Limited, its remaining mining interest and associated synthetic crude oil reserves will be swapped for an additional 10%
interest in the Scotford Upgrader and Quest CCS project. The transaction is expected to close by the end of the first half of 2025, subject to regulatory approvals. The associated proved
reserves as of December 31, 2024 were 741 million barrels (of which 50% attributable to non-controlling interest).
[F] On December 5, 2024, Shell and Equinor ASA, announced the combination of their UK offshore oil and gas assets and expertise to form a new company which will be the UK North Sea's
biggest independent producer. On deal completion, the new independent producer will be jointly owned by Equinor (50%) and Shell (50%) and 157 million boe (as of December 31, 2024)
of Shell's proved reserves will be contributed to the new joint venture alongside proved reserves contributed by Equinor. Subsequently, Shell will report 50% of the proved reserves of the new
joint venture as part of Shell's share of proved reserves from joint ventures and associates.

￮ The estimation of proved oil and gas reserves involves subjective judgements and determinations based on available geological, technical,
contractual and economic information. Estimates can change over time because of new information from production or drilling activities,
changes in economic factors, such as oil and gas prices, alterations in the regulatory policies of host governments, or other events. Estimates
also change to reflect acquisitions, divestments, new discoveries, extensions of existing fields and mines, and improved recovery techniques.
Published proved oil and gas reserves estimates could also be subject to correction because of errors in the application of rules and changes
in regulatory guidance. Downward adjustments could indicate lower future production volumes and could also lead to impairment of assets.
Joint arrangements:
￮ When we are not the operator, we have less influence and control over the behaviour, performance and operating costs of joint arrangements
or associates. Despite having less control, we could still be exposed to the risks associated with these operations, including environmental,
reputational, legal (where joint and several liability could apply) and government sanction risks. For example, our partners or members of a joint
arrangement or an associate (particularly local partners in developing countries) may be unable to meet their financial or other obligations to
projects, threatening the viability of a given project. Where we are the operator of a joint arrangement, the other partner(s) could still be able
to veto or block certain decisions, which could be detrimental to the joint arrangement.
If any of the risks above materialise, it could have a material adverse effect on our earnings, cash flows and financial condition.
How this risk is managed
￮ We maintain a diversified portfolio to manage the impact of macroeconomic volatility. We prepare an annual financial plan that tests different
scenarios, and their impact on prices, on our businesses and organisation as a whole. These scenarios help us determine which issues could
affect our operating environment and have implications for our strategy. They also help us to identify potential interventions to preserve our
cash levels.
￮ We continually assess the external environment -- the markets and the underlying economic, political, social and environmental drivers that
shape them -- to evaluate changes in competitive forces. We define multiple potential future scenarios and business environments by identifying
drivers, uncertainties, enablers and constraints to our competitiveness.

136 Shell Annual Report and Accounts 2024

Strategic Report | Risk management and risk factors continued

￮ We also continually screen for new opportunities globally through our opportunity identification process. We test the resilience of our
opportunities against a range of prices and costs for crude oil, natural gas, oil products and chemicals. These tests are based on short-, medium-
and long-term market drivers, such as the extent and pace of the energy transition. Our opportunities are then ranked, prioritised and tested for
strategic fit and value return expectations before being included in our growth funnel. We use our integrated exploration, development and
project commercial and technical expertise to mature these opportunities and actively manage non-technical risks. We benchmark our projects
internally and externally to make sure our proposals are competitive. We review the maturation progress of our various opportunities and
perform post-investment reviews to extract learnings for implementation in future opportunities.
￮ Shell's Projects & Technology organisation and our businesses work together to determine the content, scope and budget for developing new
technology that supports our activities. This includes partnering with start-ups and small- to medium-sized enterprises that are in the early stages
of developing new technologies through our Shell Ventures and Shell GameChanger programme. New technology is developed using a
maturation process, to systematically mitigate technical and commercial risks, while staying aligned with Shell's strategic ambitions and
deployment commitments.
￮ A central group of reserves experts undertakes the primary assurance of the proved reserves bookings. A multidisciplinary committee reviews
and endorses all major proved reserves bookings. Shell's Audit and Risk Committee reviews all proved reserves bookings and our CEO provides
final approval. Our Internal Audit and Investigations function also provides further assurance through audits of the control framework, from
which information disclosed in "Supplementary information – oil and gas (unaudited)" is obtained.
￮ For every major project and operation where we share control, or where we do not have control or do not operate, Shell appoints a Shell
Shareholder representative, whose responsibility is to manage performance, create and protect value for Shell. The representative seeks to
influence operators and other partners to adapt their practices in order to drive value appropriately and to mitigate identified risks. We perform
regular risk assessments of our joint ventures, including how our joint ventures' standards align with those of Shell and seek to influence to close
any gaps identified.

See "Market overview" on pages 28-30, "Other central activities" on pages 74-75, "Oil and gas information" on pages 47-54 and "Supplementary information - oil and gas (unaudited)" on
pages 313-332.

2. Climate change and the energy transition Risk type: Strategic risk Operational risk Conduct and culture risk

Rising concerns about climate change and the effects of the energy transition pose multiple risks to Shell, including
declines in the demand for and prices of our products, commercial risks from growing our low-carbon business,
and adverse litigation and regulatory developments. The physical impacts of climate change could also adversely
affect our assets and supply chains.
Risk description
Societal demand for urgent action on climate change has increased, especially since the Intergovernmental Panel on Climate Change (IPCC)
Special Report on Global Warming of 1.5°C in 2018 effectively made the more ambitious goal of the Paris Agreement to limit the rise in global
average temperature this century to 1.5°C the default target for the parties to the agreement. Society's increasing focus on climate change
and drive for an energy transition is contributing to a rapidly changing risk environment and a wide range of stakeholder actions against our
organisation. The risks and impacts include the following:
Commercial risks:
￮ Changing customer sentiment favouring the use of renewable and sustainable energy products may reduce demand for our oil and gas
products. An excess of fossil fuel supply over demand could in the future result in reduced fossil fuel prices. This could result in lower earnings,
cancelled projects and the potential impairment of certain assets.
￮ If we fail to stay in step with the pace and extent of change or customers' and other stakeholders' demand for low-carbon products, this could
adversely affect our reputation and future earnings. If we move much faster than society, we risk investing in technologies, markets or low-
carbon products for which there may be insufficient demand. Therefore, we cannot transition too quickly, or we may offer products that
customers do not want. If we are slower than society, customers may prefer a different supplier, which would reduce demand for our products
adversely affecting our reputation and materially affect our financial results.
￮ Low-carbon technology and innovation are essential to our efforts to help meet the world's energy demands competitively. If we are unable to
develop the right technologies and products in a timely and cost-effective manner, there could be an adverse effect on our future earnings. The
operating margins for our low-carbon products and services have been, and could be in the future, lower than the margins we have experienced
historically in our oil and gas operations.
￮ Certain investors have decided to divest their interest in fossil fuel companies and, if this were in to increase significantly, this could have a
material adverse effect on the price of our securities and our ability to access capital markets. Some financial institutions have been aligning
their portfolios to low-carbon and net-zero opportunities, driven by both regulatory and broader stakeholder pressures. A failure to decarbonise
our business portfolios in line with investor and lender expectations could have a material adverse effect on our ability to access financing for
certain types of projects. This could also adversely affect our partners' ability to finance their portion of costs, either through equity or debt.
Regulatory risks:
￮ The transition to a low-carbon economy has increased, and is likely to continue to increase the cost of compliance for our assets and/or products.
Shell's annual carbon cost exposure is expected to increase over the next decade because of evolving carbon regulations. Governments may set
regulatory frameworks in the future that could further restrict our exploration and production of hydrocarbons and introduce controls to limit the use
of such products, which could also affect the timing and standards associated with the decommissioning of our exploration assets.
￮ The lack of net-zero-aligned global and national policies and frameworks increases the uncertainty around how carbon pricing and other
regulatory mechanisms will be implemented in the future. This makes it harder to determine the appropriate assumptions to be taken into
account in our financial planning and investment decision processes which could impair our ability to evaluate the robustness of our plans
and opportunities. Changing net-zero policies and regulations could also lead to impairments of our existing oil and gas assets.

137 Shell Annual Report and Accounts 2024

Strategic Report | Risk management and risk factors continued

Societal risks, including litigation:

￮ In some countries, governments, regulators, non-governmental organisations (NGOs) and individuals have filed lawsuits seeking to hold fossil fuel
companies liable for costs associated with climate change. If successful, these claims may have wide-ranging consequences, including forcing
entities to hand over strategic autonomy in part to regulators, or to divest from hydrocarbon assets and technologies. We have also been subjected
to climate activism that has caused disruptions to our operations and such disruptions could happen again in the future. Climate change lawsuits
that have been filed against us could have a material adverse effect on our reputation. In the Netherlands, in a case against Shell brought by
a group of environmental NGOs and individual claimants (referred to herein as "Milieudefensie"), the Hague District Court in 2021 found that while
Shell was not acting unlawfully, Shell had the obligation to reduce the aggregate annual volume of CO2 emissions of Shell operations and energy-
carrying products sold across Scope 1, 2 and 3 by 45% (net) by the end of 2030 relative to its 2019 emissions levels. For Scope 2 and 3, this was
a significant best-efforts obligation. Shell appealed that ruling. On November 12, 2024, the Hague Court of Appeal upheld Shell's appeal and
dismissed the claim against Shell. In doing so, the Court of Appeal annulled the earlier judgment of the District Court in its entirety with immediate
effect. On February 11, 2025, Milieudefensie filed an appeal to the Supreme Court of the Netherlands.
￮ Societal expectations of businesses are increasing, with a focus on business ethics, quality of products, contribution to society, safety and
minimising damage to the environment. There is a focus on the role of the oil and gas sector in the context of climate change and the energy
transition. This has negatively affected, and in the future could negatively affect, our brand and reputation, which could limit our ability to deliver
our strategy, reduce consumer demand for our products, harm our ability to secure new resources and contracts, and restrict our ability to
access capital markets or attract employees.
Physical risks:
￮ The physical effects of climate change, such as, but not limited to, increases in temperature, sea levels and fluctuations in water availability,
could also adversely affect our assets, operations, supply chains, employees and markets.
In summary, rising climate change concerns, the pace at which we decarbonise our operations relative to society and effects of the energy transition
pose multiple challenges to our business. These could result in, for example, increased costs, financial penalties, payments of financial damages in the
event of losses of lawsuits, cancelled projects and potential impairment of certain assets, and adverse impacts on our supply chains and licence to
operate. Individually or collectively, these risks could have a material adverse effect on our earnings, cash flows and financial condition.
How this risk is managed
Overall, we mitigate climate-related risks through our strategy to deliver more value with less emissions. This approach includes:
￮ reducing the GHG emissions from our operations (Scope 1 and 2) by improving our energy efficiency, deploying renewable electricity,
and reducing methane emissions in our assets and projects;
￮ growing our LNG business while decarbonising our LNG portfolio in two main ways: by growing our portfolio with a lower carbon intensity,
and continuing to invest in emissions abatement projects to reduce both CO₂ and methane emissions;
￮ managing our Integrated Gas and Upstream portfolio to support a balanced energy transition by cutting emissions from oil and gas production.
Oil production is increasingly from our deep-water business which, through innovation, produces higher-margin and lower-carbon barrels; and
￮ focusing our businesses in Downstream and Renewables and Energy Solutions to offer more low-carbon energy solutions, while reducing sales
of oil products.
Our investments in low-carbon solutions are subject to financial modelling and stress-testing, due diligence and risk assessments to ensure that
our capital is allocated to the most attractive low-carbon projects and opportunities.
We adapt our assets and activities as necessary to enhance our resilience to the physical risks related to climate change. Many of these
adaptations are based on our Safety, Environment and Asset Management (SEAM) standards and practices.
We also engage with governments on their climate policies to advocate policies that help establish regulatory frameworks to enable society
to reach the goals of the Paris Agreement.

See "Our journey to net zero" on pages 76-108, "Energy Transition Strategy" on pages 77-92, "Renewables and energy solutions" on pages 68-71, Note 32 "Legal proceedings and other
contingencies" on pages 308-310 and Note 4 "Climate change and energy transition" on pages 255-265.

3. Country risks Risk type: Strategic risk Operational risk Conduct and culture risk

We operate in more than 70 countries which have differing degrees of political, legal and fiscal stability. This has
exposed, and could expose, us to a wide range of political developments that could result in changes to contractual
terms, laws and regulations. We also face various risks from the business and operating environment in Nigeria
which could have a material adverse effect on us.
Risk description
Developments in politics, laws and regulations can and do affect our supply chains and operations. Potential impacts, which we have experienced
in the past, include: forced divestment of assets; expropriation of property; cancellation or forced renegotiation of contract rights; delay of new
projects; additional tariffs and taxes, including windfall taxes (especially during periods of prolonged high oil and gas prices experienced in
recent years, such as 2022); restrictions on deductions and retroactive tax claims; antitrust claims; changes to trade compliance regulations; price
controls; local content requirements; foreign exchange controls; changes to environmental regulations; changes to regulatory interpretations and
enforcement; and changes to disclosure requirements. Many parts of the world are facing economic and fiscal challenges and growing pressure
on cost-of-living standards. These issues impact our business as governments, in response to political and social pressures, pursue policies that
could have a material adverse effect on our earnings, cash flows and financial condition.
The world is also facing continued geopolitical instability, including the Russia-Ukraine war, which impacts market conditions and our operations. The
broader consequences of the ongoing crisis in the Middle East remain uncertain, and a wider escalation could have greater impacts on our operations
in the region and beyond.

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We also face risks and adverse conditions in our Nigerian operations. These include security incidents affecting the safety of our people, host
communities and operations; sabotage and crude theft; ongoing litigation; limited infrastructure; challenges presented by delayed government
and partner funding and budget delays; and regional instability created by militant activities. Some of these risks and adverse conditions, such
as security issues affecting the safety of our people, sabotage and theft, have occurred in the past and are likely to occur in the future.
Such developments and outcomes have had, and could have in the future, a material adverse effect on our earnings, cash flows and financial condition.
How this risk is managed
￮ We continually monitor geopolitical developments and societal issues relevant to our interests. Our Corporate Relations function liaises with
governments and other external stakeholders in countries where we operate to understand and engage on local policies and to advocate
Shell's position on topics relevant to our industry. We are prepared to exit a country if we believe we can no longer operate there in
accordance with our standards and applicable law, and we have done so in the past.
￮ With regard to the crisis in the Middle East, we have made adjustments to our operations in the region to reduce our exposure and we continue
to monitor the risk of wider escalation.
￮ When we participate in joint ventures in Nigeria, we require that they operate in accordance with good industry practice. We seek to
proportionally share risks and funding commitments with joint-venture partners. We monitor the security situation, and liaise with host communities,
governmental and non-governmental organisations to help promote peaceful and safe operations. As a result of the March 13, 2025 completion of
the sale of The Shell Petroleum Development Company, our exposure to these risks arising from onshore activities is expected to reduce. Shell has
other businesses in Nigeria that are outside the scope of the announced divestment transaction.

See "Upstream" on pages 38-46.

4. Financial risks Risk type: Strategic risk Operational risk Conduct and culture risk

We are exposed to treasury risks, including liquidity risk, interest rate risk, foreign exchange risk and credit risk.
We are affected by the global macroeconomic environment and the conditions of financial markets. These, and
changes to certain demographic factors, also impact our pension assets and liabilities.
Risk description
We are subject to differing economic and financial market conditions around the world. Political or economic instability affects such markets.
We use debt instruments, such as bonds and commercial paper, to raise significant amounts of capital. Should access to debt markets become more
challenging, the impact on our liquidity could have a material adverse effect on our operations. For example, some financial institutions have started
to limit their exposure to fossil fuel projects. Group financing costs could also be adversely affected by interest rate fluctuations or any credit rating
deterioration.
We are exposed to changes in currency values and to exchange controls as a result of our substantial international operations. Our reporting
currency is the US dollar, although, to a significant extent, we also hold assets and are exposed to liabilities in other currencies. While we
undertake some foreign exchange hedging, we do not do so for all our activities. Even where hedging is in place, it may not function as expected.
We are also exposed to financial losses from credit risk. Some of our counterparties have, from time to time, not met their payment and/or
performance obligations under contractual arrangements and this could happen in the future.
We operate a number of defined benefit pension plans with significant associated liabilities. Volatility in capital markets or changes to government
policies could affect inflation, interest rates and investment performance, causing significant changes to the funding level of future liabilities.
Changes in assumptions for mortality, retirement age or pensionable remuneration at retirement could also cause significant changes to the
funding level of future liabilities. In the case of a funding shortfall, we could be required to make substantial cash contributions (depending on
the applicable local regulations).
If any of the above risks materialise, they could have a material adverse effect on our earnings, cash flows and financial condition.
How this risk is managed
￮ We use various financial instruments for managing exposure to foreign exchange and interest rate movements. Our treasury operations are
highly centralised and seek to manage credit exposures associated with our substantial cash, foreign exchange and interest rate positions.
￮ Our portfolio of cash investments is diversified to avoid concentrating risk in any one instrument, country or counterparty. Other than in
exceptional cases, the use of external derivative instruments is confined to specialist trading and central treasury organisations that have the
appropriate skills, experience, supervision, control and reporting systems.
￮ We maintain a committed credit facility. Management believes it has access to sufficient debt funding sources (capital markets) and to undrawn
committed borrowing facilities to meet foreseeable requirements.
￮ We have counterparty credit risk policies in place which seek to ensure that products are sold to customers with appropriate creditworthiness.
These policies include detailed credit analysis and monitoring of customers against counterparty credit limits. Where appropriate, netting
arrangements, credit insurance, prepayments and collateral are used to manage credit risk.
￮ A pensions forum chaired by the CFO oversees Shell's input to pension strategy, policy and operation. A risk committee supports the forum in
reviewing the results of assurance processes with respect to pension risk. Local trustees manage the funded defined benefit pension plans and
set the strategic asset allocation for the plans, including the extent to which currency, interest rate and inflation risks are hedged, and the
contributions paid are based on independent actuarial valuations that align with applicable local regulations. Pension fund liquidity is managed
by holding appropriate liquid assets and maintaining credit facilities. Where appropriate, transactions to transfer pension liabilities to third
parties are also considered.

See "Liquidity and capital resources" on pages 24-27 and Note 24 "Retirement benefits" on page 290.

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5. Trading risks Risk type: Strategic risk Operational risk Conduct and culture risk

We are exposed to market, regulatory and conduct risks in our trading operations.
Risk description
Commodity trading is an important component of our business which involves processing, managing and monitoring many transactions across
different countries, exposing us to operational risks, market risks including commodity price risk, regulatory and conduct risks. We use physical and
financial instruments, including derivatives such as futures and options to hedge market risks. It is not possible to eliminate all market risks we are
exposed to. Therefore, our hedging has occasionally not performed as expected and may not do so in the future. We utilise commodity trading to
optimise commercial margins from market price movements. Consequently, this activity could expose us to the risk of incurring significant losses if
prices develop unfavourably.
Our commodity trading entities are subject to many regulations, including requirements for standards of conduct. Due to the high volume of trades
we execute, commodity trading gives rise to the risk of ineffective controls, failure in oversight of trading activities and a risk that traders could
deliberately operate outside our internal operating limits. These risks have materialised in the past, and could materialise in the future, resulting in
financial losses. The rapidly changing regulatory environment also creates a risk of insufficient, delayed or incorrect implementation of new
regulatory requirements or changes to existing regulatory requirements. Violations of such regulatory requirements could expose us and our
employees to regulatory fines.
If any of the above risks materialise, it could harm our reputation and licence to operate and have a material adverse effect on our earnings,
cash flows and financial condition.
How this risk is managed
￮ We operate with procedures and policies designed to ensure that trading risks are managed within a prescribed control framework. The
framework sets out authorised limits and requirements that trading should only be performed by employees with the appropriate skills and
experience. Senior management regularly reviews these authorised trading limits. In addition, a department that is independent from our
traders monitors our market risk exposures daily, using techniques such as value-at-risk alongside other risk metrics.
￮ We maintain a Trading Compliance function managed by a Chief Compliance Officer, as regulated by the UK Financial Conduct Authority,
the US Commodities Futures Trading Commission and the Securities Commission of The Bahamas, with adequate resources, including
employees and a budget; a comprehensive governance structure, controls, policies and procedures and established reporting lines. Shell's
Trading Compliance function has systems for trade surveillance and monitoring communication, in addition to a dedicated conduct and
ethics investigation function to assess breaches of non-compliance and thematic trends.
￮ Employees in Shell's trading organisation receive clear guidance through the Code of Conduct; the organisation's Trading and Supply
Compliance Manual, supplemented with specific policies; a specific compliance website; mandatory training modules where completion
is monitored; and other relevant training.
￮ Shell leaders reinforce the importance of managing compliance and conduct risk in the trading organisation through monitoring risk metrics,
reporting to compliance risk management and governance committees, setting clear expectations via townhall meetings and other channels,
and enforcing consequences for non-compliance.

See "Liquidity and capital resources" on pages 24-27 and "Living by our values" on page 125-126.

6. Health, safety, security and the environment Risk type: Strategic risk Operational risk Conduct and culture risk

The nature of our operations exposes us, and the communities in which we work, to a wide range of health, safety,
security and environment risks.
Risk description
The health, safety, security and environment (HSSE) risks to which we and the communities in which we work are potentially exposed cover a
wide spectrum, given the geographical range, operational diversity and technical complexity of our operations. These risks include the effects
of safety lapses, natural disasters (including weather events and earthquakes) and pandemic diseases. If a major safety risk materialises, such
as an explosion or hydrocarbon leak or spill, which we have experienced in the past, this could result in injuries, loss of life, environmental harm
(including biodiversity loss), disruption of business activities, loss or suspension of permits, loss of our licence to operate and loss of our ability
to bid on mineral rights.
Social instability, criminality, civil unrest, terrorism, cyber disruption and acts of war have also negatively impacted, and could negatively impact,
our operations, our assets, our employees and contractors, and the communities in which we operate. Risks which have materialised in the past
include: acts of terrorism; acts of criminality, including maritime criminality and piracy; crude oil theft, illegal oil refining, sabotage of pipelines and
militant activities in Nigeria; cyber espionage or disruptive cybersecurity attacks; conflicts and civil unrest; malicious acts carried out by individuals
within Shell, such as data exfiltration; and environmental and climate activism (including disruptions by NGOs especially in the USA and north-
west Europe). For example, activists have boarded and protested on our vessels, assets and work sites, such as the Penguins floating production
and storage and offloading (FPSO) vessel in 2023.
Financial losses and remediation costs from safety and environmental incidents are partially, but not fully, covered by our Group insurance
companies (wholly owned subsidiaries) or third-party insurers. Accordingly, in the event of a significant incident, we may have to meet our
obligations without access to proceeds from third-party insurers. We have in the past incurred adverse impacts and costs from events, such
as Hurricane Ida in 2021.

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Our operations are subject to extensive HSSE regulatory requirements that often change and are expected to become more stringent over time,
particularly in the areas of environment. Governments could require operators to adjust their future production plans, affecting production and
costs. We have incurred, and could incur, significant extra costs in the future because of the need to comply with such requirements. Due to past
violations of laws and regulations, and other regulatory obligations, we have incurred significant costs such as fines, penalties, clean-up costs
(including decommissioning and restoration costs) and costs associated with third-party claims. We also face the risk of increasing costs from
changes in regulations and technical standards relating to decommissioning and restoration.
The above risks have threatened, and can threaten, the safe operation of our assets and the transport of our products. They have harmed, and
can harm, the well-being of our people, inflict loss of life and injuries, and disrupt our operational activities. They can also damage the environment
and negatively impact our reputation.
If a significant HSSE risk materialises, it could have a material adverse effect on our earnings, cash flows and financial condition.
How this risk is managed
￮ We follow requirements set out in our SEAM Standards to develop suitable governance structures and mitigation strategies aimed at ensuring
that if an HSSE risk materialises, we avoid the worst possible consequences and have ways to remediate any environmental damage. For
example, our standards describe the key controls required to ensure safe production and equipment care; and the type of skills and training
that are required for relevant employees. We routinely practise our emergency response plans for potential events, such as spills or fire.
￮ Decommissioning is part of the normal life cycle of every asset or operation. We aim to close and dispose of installations in a safe, efficient,
cost effective and environmentally responsible manner while meeting regulatory requirements. This includes restoring the surroundings of these
installations in line with relevant legislation, while taking our own environmental standards into account. We seek to reuse, repurpose and
recycle materials in decommissioning. Current and non-current decommissioning and other provisions are accounted for on our balance sheet.
￮ When planning projects, we conduct impact assessments, which help us to identify and assess a project's potential impact on the environment,
people and communities. Once identified, we apply a mitigation hierarchy, which is a sequence of actions to manage potential impacts and
risks. For example, in a biodiversity context we seek to avoid, minimise, restore and offset.
￮ Our security risk mitigations follow the principles of "deter, detect, delay and respond". We strengthen the security of our assets, people and
operations to reduce our exposure as appropriate, for example, by conducting site security risk assessments, using journey management plans and
performing travel risk assessments. We also invest in information risk management capabilities and crisis management and business continuity measures.
￮ Our insurance companies are adequately capitalised and they may transfer risks to third-party insurers where economical, effective and
relevant.

See "Safety" on pages 122-124, "Our approach to sustainability" on pages 127-133, "Corporate" on pages 72-73 and Note 32 "Legal proceedings and other contingencies" on pages 308-310.

7. Information technology and cybersecurity risks Risk type: Strategic risk Operational risk Conduct and culture risk

We rely heavily on information technology systems in our operations.

Risk description
Shell operates a globally integrated model with a strong focus on digitalising business processes and an increasing dependence on information
technology (IT) systems for our core operations, including for the management of personal data. As a result, we are heavily reliant on secure,
affordable and resilient IT services provided both in-house and by third parties. Rapid advancements in digital technologies, including artificial
intelligence (AI) and quantum computing, are ongoing. If we do not effectively harness these technologies, our business operations may become
less efficient, and our product offerings could lose their competitive edge, ultimately hindering our ability to execute our strategy.
Externally, we observe developments impacting our IT and cybersecurity risk profile: a worsening of the cybersecurity threat landscape
represented by increasing volumes of sophisticated cybersecurity attacks, technology developments, geopolitical conflicts and increases
in regulations across the markets in which Shell operates (such as the EU AI Act). As an organisation we have experienced, and expect to
experience in the future, cybersecurity threats such as denial-of-service, ransomware, hacktivism and attacks from nation state actors that target
critical energy infrastructure. We have also experienced and could in the future be exposed to non-malicious IT incidents. Across our supply chain,
our suppliers, customers and business partners encounter similar cybersecurity threats and incidents. Cybersecurity incidents affecting us or our
supply chain have impacted, and could impact, our operations, the security of our assets, the safety of our employees, and have a societal impact
on the delivery and maintenance of critical energy infrastructure. Cybersecurity incidents frequently involve personal data breaches causing harm
or potential harm to our customers, employees and stakeholders such as investors. In addition, such incidents have disrupted, and could disrupt,
operations, cause reputational damage and possibly lead to significant regulatory fines. Cybersecurity incidents could therefore have a material
adverse effect on our customers, staff and stakeholders thereby negatively affecting operations and our reputation. Accordingly, cyber security
incidents could have a material adverse effect on our earnings, cash flows and financial condition.

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How this risk is managed

￮ Our Information and Digital Technology Standard sets out a structured approach to identify, assess and mitigate IT and cyber security risks.
Our global integrated Information Risk Management (IRM) and cyber defence teams are staffed with cyber security professionals that monitor,
assure and help defend our global IT and data landscape. As all our employees play a role in protecting our IT systems; we give them training
on data protection, regulatory compliance and regularly run cyber security awareness campaigns and simulations on how to respond to cyber-
attacks.
￮ We evaluate emerging digital technologies with our businesses annually to align on their impact and necessary remediation, considering the
value and opportunities they present, as well as their incremental risks.
￮ We continuously track cyber-attacks, threat intelligence, cyber legislation (including the EU AI Act) and vulnerabilities relevant to our IT
landscape and have a well-structured incident management and escalation process in place.
￮ The security of IT services, where operated by external IT companies, is managed through contractual clauses and additionally through formal
supplier assurance reports for critical IT services.
￮ With regard to the protection of personal data, we continue to invest in and maintain a mature and robust global data privacy compliance
programme based on our Binding Corporate Rules (BCRs). Further details are explained in risk 8.

See "Other central activities" on pages 74-75.

8. Litigation and regulatory compliance Risk type: Strategic risk Operational risk Conduct and culture risk

Violations of laws carry fines and could expose us and/or our employees to criminal sanctions and civil suits. We
have faced, and could also face, the risk of litigation and disputes worldwide.
Risk description
We must comply with various laws. These include laws related to antitrust, competition, anti-bribery, tax evasion, anti-money laundering, trade
compliance (including sanctions) and data privacy.
We have been fined in the past for violations of antitrust and competition laws, including fines by the EU Directorate-General for Competition (DG
COMP). We have also, in the past, settled with the US Securities and Exchange Commission regarding violations of the US Foreign Corrupt Practices
Act (FCPA). As a result, any future conviction of Shell or any of its operated joint arrangements or associates for violations of EU competition law or
the FCPA could result in significantly larger fines and have a material adverse effect on us, including, but not limited to, damage to our reputation,
resulting litigation, regulatory actions and criminal sanctions or penalties, and could potentially adversely affect our licence to operate. Violation of
antitrust laws is a criminal offence in many countries, and individuals can be imprisoned or fined. In certain circumstances, directors may receive
director disqualification orders.
We are also subject to "trade compliance", the umbrella term that we use for various national and international laws designed to regulate the
movement of items across national boundaries and restrict or prohibit trade, financial flows and other dealings with certain parties, countries and
territories. For example, the EU, the UK and the USA continue to impose comprehensive sanctions on countries and territories such as Syria, North
Korea and Crimea and other territories in Eastern Ukraine. The USA continues to have comprehensive sanctions against Iran and Cuba. The EU,
the UK and some other nations such as Canada and Australia continue to maintain targeted sanctions against Iran. Countries around the world
continue to impose sanctions and trade controls against Russia over its full-scale invasion of Ukraine. Intergovernmental co-operation in this area
has increased and there is growing pressure to enforce existing sanctions globally. Abiding by all the laws and regulations on trade compliance
is often complex and challenging because of factors such as: the expansion of sanctions; the frequent addition of prohibited parties as other
measures; the number of markets in which we operate; the risk of differences in how jurisdictions apply sanctions; and the large number of
transactions we process. Shell has voluntarily self-disclosed potential violations of sanctions in the past. Any violation of sanctions could lead
to loss of import or export privileges and significant penalties on, or prosecution of, Shell and/or its employees.
The protection and lawful use of personal data is of increasing importance to our licence to operate, given the significant increase in digital
solutions provided to Shell's customers and business partners. We process personal data in all our operations. A failure to protect personal data
or a failure to use it only for lawful and ethical purposes could result in significant harm to those individuals whose personal data we process. In
addition, regulatory action by way of significant fines of up to 4% of Shell Group annual turnover and other enforcement actions such as orders
to cease processing personal data may be imposed depending on the law in scope. There is a related risk of harm to our reputation potentially
causing the loss of trust of existing and potential customers, stakeholders, regulators and employees. We have notified a number of data privacy
regulators of personal data breaches and have had fines issued against us and this could happen in the future.
We also face the risk of litigation and disputes worldwide. For example, Shell (in its capacity as previous owner of SPDC) and various subsidiaries and
associates operating in Nigeria are parties to various environmental, non-environmental and contractual disputes brought in the courts of Nigeria, the
USA and England. Nederlandse Aardolie Maatschappij B.V. (NAM), a joint venture between Shell and ExxonMobil (50%:50%) has also settled
claims for physical damage to property caused by earthquakes induced by historical production from the Groningen gas field, and remains financially
responsible insofar as the costs corresponded to NAM's liability. From time to time, social and political factors play a role in unprecedented and
unanticipated judicial outcomes that could adversely affect Shell. Non‑compliance with policies and regulations could result in regulatory
investigations, litigation and, ultimately, sanctions. Certain governments and regulatory bodies have, in Shell's opinion, exceeded their constitutional
authority by attempting unilaterally to amend or cancel existing agreements or arrangements; failing to honour existing contractual commitments; and
seeking to adjudicate disputes between private litigants. Certain governments have also adopted laws and regulations that could potentially conflict
with other countries' laws and regulations, potentially subjecting us to criminal and civil sanctions. It is also now common for persons or corporations
allegedly injured by violations of laws to sue for damages.

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Violations of laws carry fines, which we have been subject to, and could be subject to in the future, and which could expose us and/or our
employees to criminal sanctions, civil suits and other consequences, such as debarment and the revocation of licences. Accordingly, violation of
laws, including those noted above, litigation and disputes could harm our reputation and could have a material adverse effect on our earnings,
cash flows and financial condition.
How this risk is managed
￮ Our Legal and Tax functions are organised globally and support our business lines in seeking to ensure compliance with local laws and fiscal
regulations and proactively filing claims where warranted to protest unfair practices.
￮ To help manage antitrust, competition, anti-bribery, tax evasion, anti-money laundering and trade compliance risks with adequate resources
we maintain risk-based compliance programmes, a comprehensive governance structure, established reporting lines and policies and
procedures, including mandatory due diligence, counterparty-screening and regular risk assessments.
￮ Our employees receive guidance on the requirements listed in our Ethics and Compliance Manual -- including via a dedicated website, and
training modules where completion is monitored -- which is reinforced by messages from Shell leaders on these requirements. This manual also
includes the Protect Shell Policy, which explains Shell's position on managing antitrust risks in engagements with parties external to Shell. In
response to fast-moving external antitrust developments and trends, internal guidance is continually being monitored to ensure that it remains
relevant.
￮ With regard to the protection of personal data, we continue to invest in and develop a mature and robust privacy compliance programme based
on our Binding Corporate Rules (BCRs). Every Shell company is required to manage personal data in a professional, ethical and lawful manner.
We have a robust "privacy by design" process, which includes the monitoring of data privacy regulations, to help ensure that necessary controls are
built into our IT systems and solutions to protect personal data.

See "Living by our values" on pages 125-126 and Note 32 "Legal proceedings and other contingencies" on pages 308-310.

9. Reputation and risks to our licence to operate Risk type: Strategic risk Operational risk Conduct and culture risk

An erosion of our business reputation could have a material adverse effect on our brand, on our ability to secure new
hydrocarbon or low-carbon opportunities, to access capital markets, and to attract and retain people, and on our
licence to operate.
Risk description
Our reputation is an important asset. Real or perceived failures of governance or regulatory compliance or a perceived lack of understanding
of how our operations affect surrounding communities and the environment could harm our reputation.
Societal expectations of companies are high, with a focus on business ethics, quality of products, contribution to society, safety and minimising
negative impact on the environment and people, including human rights. There is ongoing focus on the role of oil and gas companies in the
context of climate change and the energy transition. NGOs continue to challenge Shell's licence to operate through activities to block or delay
projects and by bringing legal actions, diverting our resources and challenging trust. In key markets, we continue to see protests at external events
such as our Annual General Meeting. We also continue to receive claims brought by NGOs. Our brand communications have been subject to
challenge from advertising regulators in the UK and the Netherlands, following complaints received from members of the public. During prolonged
periods of high oil and gas prices, the oil and gas industry has been accused in the past and could in the future be accused of profiteering from
higher fuel and electricity prices and therefore impacting living costs. The materialisation of these risks has at times negatively affected, and could
affect in the future, our brand, which could limit our ability to deliver our strategy; reduce consumer demand for our branded and non-branded
products; harm our ability to secure new resources, partnerships and contracts; and restrict our ability to access capital markets or attract staff.
Individually or collectively, these risks could negatively affect our reputation and licence to operate and, accordingly, could have a material
adverse effect on our earnings, cash flows and financial condition.
How this risk is managed
￮ The Shell General Business Principles (SGBP) set out our responsibilities to shareholders, customers, employees, business partners and society. They
set the standards for how we conduct business with integrity, care and respect for people. As part of these principles, we commit to contribute to
sustainable development. All Shell employees and contractors, and those at the joint ventures we operate, are expected to behave in line with
these principles. We undertake a range of activities to help embed the SGBP and the Code of Conduct throughout the organisation. This includes
training and encouraging people to discuss the dilemmas they face in their work. Shell employees, contractors and third parties with whom Shell
has a business relationship can report any potential breaches of the Code of Conduct confidentially through several channels, including
anonymously through a global helpline operated by an independent provider.
￮ We continually assess and monitor the external environment for potential risks to our reputation. We engage in dialogue with our key
stakeholders, such as investors, industry and trade groups, academics, governments and non-governmental organisations to gain greater
insights into societal expectations of the Shell Group. We make efforts to explain to our stakeholders what the Company is doing and why,
the validity of our energy transition targets and our progress towards meeting them.
￮ Human rights are fundamental to Shell's core values of honesty, integrity and respect for people. Respect for human rights is embedded in the Shell
General Business Principles and our Code of Conduct.
￮ We take proactive steps when appropriate through legal means to protect our reputation from unwarranted accusations.

See "Living by our values" on pages 125-126.

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10. Our people and culture Risk type: Strategic risk Operational risk Conduct and culture risk

The successful delivery of our strategy is dependent on our people and on a culture that aligns to our goals and
reflects the changes we need to make as part of the energy transition.
Risk description
Shell's culture is defined as the shared values, practices and beliefs of its employees. All these elements need to act in harmony to create our
desired culture and ensure successful and sustained performance in line with our strategy. Our culture is influenced by decisions on organisational
structure and accountabilities, people and skills, how work is done using processes and systems, and the mindset and behaviours that exist.
As the energy system transforms and we reshape our portfolio, elements of our culture will need to adapt. For example, we will have to develop
new skills, and adapt our processes and systems, which, in some areas, will need to be different from those required for our traditional oil and gas
businesses. We will have to continually leverage our learner mindset to anticipate and respond to changes in the external market. However, we
will also need to retain our core values of honesty, integrity and respect for people to help ensure trust and openness in how we do business
and help ensure our employees feel valued and perform at their best.
If we fail to maintain a culture that aligns with our strategy, this could harm our reputation and have a material adverse effect on our earnings,
cash flows and financial condition.
How this risk is managed
￮ The SGBP, Code of Conduct and Ethics and Compliance Manual help everyone at Shell act in line with our values.
￮ Delivery of our desired outcomes is pursued by leveraging our Performance Culture, i.e., the shared values, practices and beliefs of our
employees. This is influenced by decisions on our structure and accountability; people and skills; processes and systems; and mindset and
behaviours. Our mindset and behaviours emphasise psychological safety.
￮ We have ambitions around diversity, equity and inclusion and monitor these on a regular basis. We also continually assess our culture and
employee engagement through tools such as the annual Shell People Survey.
￮ People development remains a priority for our organisation. We proactively identify skill and capability gaps for traditional and emerging
businesses; offer training to address these gaps; and if needed recruit talent externally to add to the skills and experiences of our workforce.
To enable our leaders to lead this change, we support them through targeted interventions including leadership development and coaching.

See "Powering lives (People)" on pages 115-119 and "Living by our values" on pages 125-126.

Investors should also consider the following, which could limit shareholder remedies.

11. Other (generally applicable to an investment in securities)

The Company's Articles of Association determine the jurisdiction for shareholder disputes. This could limit shareholder
remedies.
Risk description
Our Articles of Association generally require that all disputes between our shareholders in such capacity and the Company or our subsidiaries
(or our Directors or former Directors), or between the Company and our Directors or former Directors, be exclusively resolved by arbitration in
London, the United Kingdom. Our Articles of Association also provide that, if this provision were to be determined invalid or unenforceable for any
reason, the dispute could only be brought before the courts of England and Wales. Accordingly, the ability of shareholders to obtain monetary or
other relief, including in respect of securities law claims, could be determined in accordance with these provisions.

144 Shell Annual Report and Accounts 2024

Strategic Report

Principal decisions and stakeholders General confirmation of directors' duties

Shell's Board has a clear and robust corporate governance framework,
which sets out certain financial and strategic thresholds which need to
Section 172(1) statement be triggered for matters to be considered and approved by the Board.
The corporate governance framework covers matters reserved for the
The Board of Directors, having considered the matters set out in section Board, delegations to its committees and delegations to the Executive
172(1)(a) to (f) of the Companies Act 2006 (S172), confirm in good Directors. The Manual of Authority sets out the delegation and
faith that the Directors have acted in a way that they consider would approval process across the broader business.
most likely promote the success of the Company for the benefit of its
members as a whole. All Directors, upon joining Shell, have participated in induction
training and are provided with ongoing guidance covering the
This S172 statement discloses how the Directors took into account the regulatory requirements of their role, including, but not limited to, S172.
interests of Shell's wider stakeholders in the Board's decision-making
process. The level of information disclosed is consistent with the size When making decisions, each Director ensures that they act in the way
and the complexity of Shell's businesses and focuses on matters of they consider, in good faith, would most likely promote Shell's success
strategic importance to Shell. for the benefit of its members as a whole, and in doing so has regard
(among other matters) to the issues set out below.

S172 Factor Key examples

(a) The likely The Directors understand the business and the evolving and challenging environment in which we operate, including the challenges of the
consequences of global energy transition. In 2024, the Board continued with its oversight of Shell's strategy, including with respect to the Energy Transition
any decision in Strategy 2024 (ETS24). The Board focused on financial strength and discipline with a dynamic approach to our portfolio of assets, with
the long term consideration given to key stakeholders and the likely long-term impact of any decision. During the year, the Board reiterated its commitment
to Shell's energy transition strategy and reflected on the challenges to be faced by Shell in the next phase of this strategy, given the shifting
macroeconomic and geopolitical context. We put customers at the centre of our strategy, innovating the products customers need as they
seek to decarbonise. See pages 10-13 for more on our strategy.
The Directors recognise there are significant complexities in relation to Board decision-making, given differing societal and stakeholder views
about our operations and the intricacies associated with the evolving energy transition. Accordingly, the Directors have considered S172 and
made their decisions in good faith relating to Shell's strategy having regard for the long-term sustainable success of the Company.

(b) Interests Shell employees are fundamental and core to our business model and the safe delivery of our strategic ambitions. The success of our
of employees business depends on attracting, retaining, developing and motivating talented employees. The Directors consider and assess the implications
of relevant decisions on employees and the wider workforce. The Directors seek to ensure that Shell remains a responsible employer,
including with respect to pay and benefits, fairness (including gender pay gap reporting, see pages 118), promotion of equal opportunity
(information on Shell's diversity, equity and inclusion is detailed on page 117-119), health and safety issues, and the workplace environment.
The Directors regularly engage with employees and the wider workforce (a summary of engagements is provided on pages 167-168), as well
as consider the annual employee survey, the Shell People Survey (the most recent is detailed on page 117). The Directors recognise that our
pensioners also remain important stakeholders.

(c) Fostering To deliver our strategy we require strong, mutually beneficial relationships with suppliers, customers, governments, national oil companies and
the company's joint-venture partners. Shell seeks to promote and apply certain general principles in such relationships. The Board continues to review Shell's
business approach to suppliers, which is set out in the Shell Supplier Principles. In 2024, the Board reviewed steps taken with suppliers and supply
relationships chains to combat modern slavery and human trafficking. More detail on Shell's Modern Slavery Act Statement is set out on page 217. The
with suppliers, businesses continually assess the priorities related to customers and those with whom we do business, with the Board engaging with the
customers and businesses on these topics, for example, within the context of business strategy updates and investment proposals.
others
The Directors also receive updates on a variety of topics that indicate how these stakeholders have been engaged. These updates include
information provided by the Projects & Technology function on suppliers and joint-venture partners, with respect to items such as project
updates and supplier contract management. Businesses also provide information, as relevant, on customers and joint-venture partners in
relation to business strategies, projects and investment or divestment proposals. The CEO provides a comprehensive update to the Board
on material business and external developments, including external engagements, at each main Board meeting.

(d) Impact It is integral to our decision-making that we reflect on our impact on the community and the environment. To help it make decisions, the Board
of operations receives information on various topics including, for example, the net carbon intensity target, proposals to invest or divest, and business
on the strategy reviews. The information also goes into Group-level overviews, such as updates on safety and environment performance, reports from
community and the Chief Ethics and Compliance Officer, and reports from the Chief Internal Auditor. In 2024, the Board held meetings with Shell's in-country
environment stakeholders, including a staff engagement during the Board's off-site in the Netherlands, which also included dialogue with Mark Rutte, who
was Dutch prime minister at the time. Engaging with staff enabled the Board to maintain and strengthen its connection with Shell's businesses,
workforce and other local stakeholders. It also provided the opportunity to gain a deeper understanding of Shell's reputation, role and
contribution within the communities where we operate. See "Understanding and engaging with our stakeholders" on pages 165-166,
and the Board committee reports.

(e) Maintaining Shell aims to meet the world's growing need for more and cleaner energy solutions in economically, environmentally and socially responsible
a reputation for ways. The Board periodically reviews and approves clear frameworks -- such as the Shell General Business Principles, Shell's Code of
high standards Conduct, specific Ethics and Compliance manuals, the Ethical Decision-Making Framework and the Modern Slavery Act Statement -- to ensure
of business that high standards are maintained in Shell businesses and in Shell's business relationships. Complemented by the ways the Board is informed
conduct and monitors ethics and compliance with relevant governance standards, this helps to ensure that Board decisions and the actions of Shell
companies both promote and maintain high standards of business conduct.

(f) Acting fairly After weighing up all relevant factors, the Directors consider which course of action best enables delivery of our strategy in the long-term
between interests of the Company, taking into consideration the effect on stakeholders. In doing so, our Directors act fairly as between the Company's
members of members but are not required to balance the Company's interests with those of other stakeholders.
the company

145 Shell Annual Report and Accounts 2024

Strategic Report | Principal decisions and stakeholders | Section 172(1) statement continued

Culture The guidance on preparing information, proposals or discussion items

The Board plays an important role in establishing, assessing and for the Board asks for these materials to include considerations of the
monitoring our desired culture and how it is embedded in our values, views, interests, and concerns of stakeholders and how management
attitudes and behaviours, including in our activities and stakeholder addressed them. This helps to strengthen the Board's knowledge of
relationships. For example, the Board has established honesty, integrity how the broader business undertakes significant levels of stakeholder
and respect for people as Shell's core values. (For further information engagement. The Terms of Reference for our Sustainability Committee
see "Living by our values" on pages 125-126). The Shell General (SUSCO) include, within the committee's remit: review and consider
Business Principles and Code of Conduct help everyone at Shell to act external stakeholder perspectives on sustainability issues of relevance
in line with these values and comply with relevant laws and regulations. to the Group's business, and review selected sustainability topics
The Shell Commitment and Policy on Health, Safety, Security, and matters of public concern, such as biodiversity, water and
Environment & Social Performance applies across Shell and is designed human rights.
to help protect people and the environment. (For further information,
see "Safety" on pages 122-124). The Board also engaged with certain stakeholders directly, to
understand their views. The Board draws upon Shell's substantial in-
To achieve our strategic goals, we need to adapt our mindset and house expertise by periodically receiving input from economics and
behaviours as we navigate the increasing complexity of the world policy experts on key political and economic themes, with some
around us. At Shell, we seek to have a culture that encourages updates being presented to the Board each quarter.
the attitudes and behaviours we believe will help us succeed:
￮ We deliver results: We own our performance, to power progress See "Understanding and engaging with our stakeholders" on pages 165-166.
together. We deeply understand our business, we deliver the basics
brilliantly, simplifying and improving every day. We are disciplined in
meeting our promises even when the unexpected happens. Our Information on how the Directors have engaged with employees
values and care enable our competitive performance. can be found on pages 167-168 and in the "Powering lives" section
￮ We learn and adapt: we have the courage to raise the bar. With on page 117. The tables below include examples of how Directors
our Learner Mindset we navigate uncertainty and adapt in a rapidly have considered the interests of Shell employees and the resulting
changing world. We value and grow our expertise. We learn from outcomes.
setbacks to accelerate progress, knowing we have each other's back.
￮ We're one team: We win together, driven by our common outcomes. Principal decisions
We listen to different views to make better data-based decisions and In this section, we outline some of the principal decisions made by the
then we commit. We are the partner of choice by working together Board over the year. We explain how the Directors have engaged with
with our customers, communities and countries to consistently deliver or in relation to key stakeholder groups and how stakeholder interests
our promises. were considered in decision-making.
￮ We care: We care about each other, our work, our values, goal
zero, ethics and DE&I. This builds trust, sets us apart and is key to To remain concise, we have categorised our key stakeholders into
our performance. Because we care, we are honest with each other seven groups. Where appropriate, each group is considered to include
to grow to be our best and deliver commercial outcomes. both current and potential stakeholders. The groups are:
￮ investor community;
The Board considers the Shell People Survey to be an important tool ￮ employees/workforce/pensioners;
for measuring employee engagement, motivation, affiliation, and ￮ our customers;
commitment to Shell. With consistently high response rates, it provides ￮ regulators/governments;
valuable insights into employee views. It also helps the Board ￮ NGOs/civil society stakeholders/academia/think tanks;
understand how the survey's outcomes are being used to strengthen ￮ communities; and
Shell culture and values. ￮ suppliers/strategic partners.

Stakeholder engagement (including employee Board decisions

engagement) We define principal decisions taken by the Board as decisions taken
The Board recognises the important role Shell has in many societies in 2024 that are of a strategic nature and significant to any of our key
and is deeply committed to public collaboration and stakeholder stakeholder groups. As outlined in the UK Financial Reporting Council
engagement. The Board strongly believes that Shell will only succeed (FRC) Guidance on the Strategic Report, we include decisions related
by working together with customers, governments, business partners, to capital allocation and dividend policy.
investors, and other stakeholders.
How were stakeholders considered
We continue to build on our long track record of working with others, We describe how regard was given to the likely long-term
such as investors, industry and trade groups, universities, governments, consequences of the decision, including how stakeholders were
non-governmental organisations (NGOs) and, in some appropriate considered during the decision-making process.
instances, our competitors through our joint-venture operations or
industry bodies. We believe that working together and sharing What was the outcome
knowledge and experience with others offers us greater insight into We describe which accommodations or mitigations were made, if any,
our business. We also appreciate our long-term relationships with and how Directors have considered different interests, and what factors
our investors and acknowledge the positive impact of ongoing they took into account.
engagement and dialogue.

146 Shell Annual Report and Accounts 2024

Strategic Report | Principal decisions and stakeholders | Section 172(1) statement continued

Strategic updates

Strategy What was the outcome

As part of the Board's continuing oversight of Shell's strategy, the Directors receive and Energy Transition Progress and Strategy
discuss regular strategy updates including feedback from stakeholder engagements with There are differing views about Shell's ambition, targets and
management, investors, the media, climate activists and internal staff. strategy to become a net-zero emissions energy business by
2050. Shell continued its dialogue with its stakeholders on the
How stakeholders were considered progress of its ETS, and the Board recognises the different views
Energy Transition Progress and Strategy of each Shell stakeholder group. The Board continues to listen,
In March 2024, the Board approved a report (the Shell Energy Transition Strategy 2024 learn and adapt as Shell delivers against its strategy, with
(ETS24)) building on ETS21 which was created with the aim of helping investors and consideration given to the long-term success of the organisation,
society obtain a better understanding of how Shell is addressing the risks and as well as the interests of Shell's shareholders, customers and
opportunities of the energy transition. ETS24 was put to shareholders for an advisory wider society. More information on the outcome of discussions
vote at the 2024 Annual General Meeting (AGM), with 78.03% of shareholders that following the 2024 shareholder advisory vote can be found
voted supporting the resolution. on page 165.

Both before and after the 2024 AGM, the Chair, CEO and some members of the Discussions with stakeholders and feedback from those
Executive Committee engaged with key stakeholders to understand their views and engagements were integral to the preparation of ETS24, and
opinions on Shell's progress on its ETS. They engaged with our largest shareholders and the Board's approval of this strategy. In this Annual Report, we
offered further opportunities to discuss Shell's progress on its ETS and to understand the strive to provide information on Shell's progress on its energy
reasons behind various voting decisions. The Chair also engaged directly with our large transition strategy, along with our ambitions, targets and the
institutional shareholders during his investor roadshow in September 2024. clarifications our stakeholders are seeking.

Insights into Shell's operations in the Netherlands Board off-site

In June 2024, the Board held its annual off-site in-person over the course of three days in the Through engagements with multiple stakeholders, the Board:
Netherlands, providing for a number of engaging and interactive events with both internal ￮ experienced the breadth of businesses that Shell has in the
and external stakeholders. A summary of the Board off-site is provided on page 161. The key Netherlands;
focus areas related to Shell's strategy and presence in the Netherlands. ￮ met with a diverse cross-section of staff and leaders in the
Netherlands and considered their feedback from the
Staff engagements engagements that took place;
As part of the Board off-site, the Board and Executive Committee had the opportunity ￮ built awareness of the local context and risks;
to engage and speak directly with staff about their experience within the Shell businesses ￮ considered geopolitical contexts in connection with the energy
in the Netherlands. For further information on the engagement with our workforce see transition;
"Board activities" and "Workforce engagement" on page 162 and pages 167-168. ￮ considered key external perspectives connected to Shell's
energy transition ambitions, targets and strategy; and
￮ discussed core elements of our strategy with key customers,
government officials and other stakeholders.

Financial strength, cash allocation including shareholder distributions

The Board considered cash flow, the macro environment and business performance in 2024 What was the outcome
against 2023. The Board also considered management's view of the outlook for the Group's In relation to the decisions to increase distributions to
performance, and reviewed the financial framework with specific focus on shareholder shareholders, the Board and management considered the views
distributions. Directors approved several proposals with the aim of delivering value to of stakeholders, the strength of the Company's balance sheet
shareholders and increasing shareholder distributions through a combination of progressive and the need to continue to invest in the future of energy.
dividends and share buybacks. The form, and timing, of distributions to shareholders were
announced throughout 2024, alongside the publication
How stakeholders were considered of the quarterly results.
A number of considerations underpinned each proposal, with proposals discussed and
reviewed at certain points throughout the year. These considerations took account of the During 2024, the Board approved share buybacks of $14 billion,
macro environment, robust business performance and outlook, the strength of the balance and a further $3.5 billion of share buybacks was announced on
sheet, capital discipline, feedback from advisers and feedback from other stakeholders. January 30, 2025.

Approval of Shell's detailed Operating Plan 2025-2027 (OP24)

The approval of OP24 followed an in-depth review by the Board of proposals on capital What was the outcome
allocation, capital investment outlook, competitive outlook, operating expenses, return on Following extensive review and discussion, the overall
average capital employed, shareholder distributions and alignment with net carbon intensity outcome of this decision was an Operating Plan that the
targets. In the December 2024 Board meeting, OP24 was approved. Board believes is robust against various scenarios and features
strong optionality if needed. In particular, the Board assured
How stakeholders were considered itself that, as these decisions were taken, OP24 flexibly
OP24 discussions included ensuring credible metrics, scenario testing and understanding the demonstrated pathways to enable delivery of Shell's near-
risks and levers to enable delivery of the near- and long-term targets which were set out at and long-term targets.
CMD23. Meeting commitments made to investors is critical to building trust and confidence
with our external stakeholders. The Directors also considered the financial strength of the We recognise that stakeholder opinions differ on the approach
organisation, the macroeconomic environment, and the continued heightened geopolitical towards the energy transition. OP24 is based on society's
risks as a result of the Russia-Ukraine war and conflict in the Middle East. The Directors and demand for products and services. OP24 also supports Shell in
Executive Committee balanced the priorities in the financial framework, including capital maintaining a reputation for high standards of business conduct
and operating expenditure commitments towards the energy transition alongside increased and health, safety, security and environment issues. It maintains
shareholder distributions, maintaining balance sheet strength, aspired credit ratings and the approach to employee remuneration and benefits to
greenhouse gas target tracking. The plan was discussed extensively and reviewed pensioners. OP24 also seeks to reward our investors with returns,
thoroughly. Responses from investors and discussions with equity and debt market analysts a strong balance sheet and capital discipline, and to maintain the
were also presented to the Board for consideration. The Board asked management long-term financial strength of the Company to invest in more and
questions about the flexibility of OP24 in the event of various energy transition scenarios. cleaner energy and meet the current and future needs of society.

147 Shell Annual Report and Accounts 2024

Strategic Report | Principal decisions and stakeholders | Section 172(1) statement continued

Investing in new business, acquisitions and divestments, and closures

Over the course of the year, the Board considered and approved new opportunities What was the outcome
and projects and proposed divestments or closures. Investment in Ruwais LNG project in Abu Dhabi
The Board approved the investment in the Abu Dhabi National
How stakeholders were considered Oil Company's (ADNOC) Ruwais liquefied natural gas (LNG)
The Board considered the impact of decisions related to new business opportunities and project in Abu Dhabi through a 10% participating interest. In
divesting from existing opportunities in the context of sustainability, supply, regulations and Board discussions the Board considered, among other things,
carbon intensity. Critically, the Board reviewed the alignment of various proposals with Shell's the position of minority shareholders, the relationship between
strategy. Particular focus was given to potential benefits of certain divestments, including their Shell and ADNOC and the strategic fit for the project in
potential to: create returns for shareholders; further strengthen the balance sheet; de-risk delivering low carbon LNG.
future cash flow; and avoid significant additional capital investment. As part of the
discussions, the Board considered the strategic drivers for the intended divestments, including Atapu Consortium final investment decision on
the Scope 1 and 2 emissions of each asset, anticipated regulatory changes expected to lead Atapu-2 Project in Brazil's Pre-Salt
to value erosion, and any value opportunities afforded by the macro environment. The Board approved the progression of the Atapu-2 project
enabling the consortium to take a final investment decision. In
As part of each proposal, the respective business unit will undertake effective due Board discussions, the Board considered the strategic alignment
diligence on prospective purchasers from a financial, reputational, as well as operating and status of the project noting suppliers and supply chain
philosophy standpoint to ensure future obligations are met, or suitable mitigating constraints, contractor capacity and the position of the
measures are in place, to protect Shell and its people. consortium partners.

Within each divestment proposal, the Board considered if the Company was being a Bonga North Investment
responsible seller of its assets and if the purchasers have the capability to manage our The Board approved the investment in Bonga North, a deep-
assets/people appropriately. Staff matters are explicitly considered during negotiations water project off the coast of Nigeria. In Board discussions, the
and the due diligence process for acquisitions and divestments. Comprehensive Board considered among other things, the alignment of the
engagement plans are developed as appropriate in parallel to the negotiations. opportunity with the strategy and the in-country stakeholders.

As part of Shell's intercompany approval process, the following investments or Project Manatee final investment decision
divestments were discussed and supported by the Board. The Board approved investment in an undeveloped gas field in
the East Coast Marine Area (ECMA) in Trinidad and Tobago.
Investment in Ruwais LNG During Board discussions, the Board considered relations with
The investment in the Ruwais LNG project in Abu Dhabi taking a 10% equity interest. the government in Trinidad and Tobago, customers, the carbon
competitiveness of the project and geopolitical risk in the region
and noted the project's alignment with the strategy.
Atapu Consortium final investment decision on Atapu-2 project in Brazil
The Atapu Consortium's investment in the Atapu-2 project, a second floating production,
storage and offloading (FPSO) vessel to be deployed at the Atapu field. Further information Expansion of the CSPC petrochemical facility, China
on this can be found on page 39. The Board approved the proposed expansion of the CSPC
petrochemicals facility enabling CSPC to take a final investment
decision to build a third ethylene cracker and a new facility which
Investment in Bonga North, Nigeria
will produce high-performance specialty chemicals. In Board
Investment in Bonga North, a deep-water project off the coast of Nigeria.
discussions the Board noted the relations with government and
the customer needs and the alignment of the investment with the
Project Manatee final investment decision strategic intent.
Investment in an undeveloped gas field in the East Coast Marine Area (ECMA) in Trinidad
and Tobago.
Creation of joint venture with Equinor for operations
in the North Sea
Expansion of the CSPC petrochemical facility, China The Board approved the execution of the commercial agreements
Expansion of the petrochemicals facility owned by CSPC in Daya Bay, Huizhou, China. with Equinor to progress the proposed joint venture. During Board
discussions, the Board noted that the incorporated joint venture
Creation of joint venture for operations in the North Sea (IJV) will be set up to sustain UK oil and gas production and
The creation of a joint venture between Equinor UK Ltd, a subsidiary of Equinor ASA, and security of energy supply in the UK and considered the impact on
Shell U.K. Limited, a subsidiary of Shell plc which combines their UK offshore oil and gas staff, communities, government relations and other stakeholders.
assets and expertise.

Strategic Report signed on behalf of the Board

/s/ Sean Ashley

Sean Ashley
Company Secretary
March 25, 2025

148 Shell Annual Report and Accounts 2024

Governance
Directors' Report
150 Introduction from the Chair
152 The Board of Shell plc
157 Executive Committee
159 Governance framework
161 Board activities
165 Understanding and engaging with our stakeholders
167 Workforce engagement
169 Board evaluation
170 Statement of compliance with the UK Corporate
Governance Code
171 Nomination and Succession Committee
175 Sustainability Committee
176 Audit and Risk Committee Report
188 Directors' Remuneration Report
191 Annual Report on Remuneration
208 Directors' Remuneration Policy
216 Other regulatory and statutory information

149 Shell Annual Report and Accounts 2024

Governance

Introduction
from the Chair
Dear Shareholders Board leadership and Shell's purpose
Shell's purpose is set out in the early pages of this report. Throughout
I am pleased to introduce this governance section of our 2024 Annual this Governance report we focus on how Shell's governance operates
Report and Accounts. As a Board, we engage with Shell's purpose, in practice, and why we believe this is the best approach for us.
strategy, vision, values and culture to fully understand how these all
work together. The Governance report is structured around the key themes of the
2018 UK Corporate Governance Code (the Code). Our narrative
In 2024, I and my fellow Board members were especially impressed seeks to explain how governance supports and protects Shell and
by how Shell's Executive Committee has focused on performance, our stakeholders.
discipline and simplification to transform Shell into a more competitive
energy business. Shell applies the principles and the spirit of the Code. There is one
instance where we adopt an approach slightly different from that
We saw how this focus is rewarding shareholders and creating a suggested by one of the Code's provisions, namely Provision 5 which
simpler organisation. At the same time, Shell continues to provide its concerns workforce engagement. We explain this on page 170.
customers with the secure and affordable energy they need to power We consider our governance processes are appropriate, given the
their lives and businesses today and through the transition to low- specific circumstances and range of factors particular to Shell, such
carbon energy. as its global nature, size, complexity and history.

In line with Shell's transformation, on March 4, 2025, we announced Our AGM continues to reach a wider audience through its hybrid
further changes to Shell's Executive Committee (EC) and leadership format, allowing our global shareholder base to participate in
structure to support its strategy to deliver more value with less proceedings. However, disruptive and unsafe behaviour from
emissions. These changes reflected Shell's three main areas of business some attendees requires us to continually assess how we conduct
value – Integrated Gas, Upstream, and Downstream, Renewables and this meeting.
Energy Solutions – and they follow the creation of a new Trading and
Supply position in the EC. Information on how the Board discharges its duty in relation to key
stakeholder interests, including those of our workforce, and an
Like the EC, the Board, in 2024, also took some important steps to explanation of how it considered these when making principal
drive more focus and simplification in the ways we work. For example, decisions are set out on pages 145-148. On pages 161-164, we
we have further integrated carbon management considerations at provide information about our Board activities and highlight which
Board level; simplified the allocation of work between the Board, stakeholders we considered.
Board Committees and the EC; dedicated time to reflect on our
dynamics and we will continue to look at how we can simplify I was delighted to visit a range of Shell sites with a number of Board
our governance processes. members, including in Brazil, the Netherlands, Oman and Qatar. I also
went to China where I delivered a lecture at Tsinghua University School
Shell has a strategy that is transforming its business, and a vision [A] of Economics and Management, and presented awards to the finalists
to become the world's leading integrated energy company delivering of the Shell Eco-marathon.
impact at scale, connecting energy and people, matching supply to
demand. The Board believes that this is the right approach for our Our workforce engagement methods can be found on pages 167-168.
customers, investors and wider society. We continue to believe that constructive relationships built on mutual
respect and transparency help Shell attract and retain employees,
Energy Transition Strategy 2024 while supporting greater productivity and operational safety and
In March 2024, Shell published its Energy Transition Strategy 2024 efficiency. Helping ensure that employee voices are heard on relevant
(ETS24) which was endorsed by shareholders at our Annual General matters in the boardroom in practical ways is key to understanding
Meeting (AGM) in May 2024. The Board was pleased to see this the broader impact of business decisions, including with respect to
support for our Energy Transition Strategy which reduces emissions organisational culture.
from our operations and our products as we work to become a net-zero
emissions energy business by 2050. The Board recognises the importance of culture in delivering Shell's
purpose and strategy. In December 2024, the Board received updates
Time was allocated to ETS24 at the annual Board off-site in June 2024, on the Shell People Survey, an annual employee survey, and the
and the Board routinely discussed the energy transition at Board conduct and culture within the organisation, along with the associated
meetings throughout 2024. risk areas (see "Risk management and risk factors" on pages 134-144
for more information on this risk).
[A] A vision statement defines the desired future state of a company rather than a series of
firm, binding commitments.

150 Shell Annual Report and Accounts 2024

Governance | Introduction from the Chair continued

In January 2025, the management team shared with us how it is We are cognisant of and accept, that not all our stakeholders will be
seeking to evolve the Shell culture, placing people at the heart of fully supportive of all the decisions that we take, and some stakeholders
transforming Shell's performance. Shell's culture reflects the long-held will choose different methods of communicating their views and their
values of the organisation – honesty, integrity and respect for people. concerns. We will continue to engage with stakeholders, and we will
These underpin all the work we do and are embedded in our strategy continue to have the humility to listen, learn and adapt as we focus
and purpose. The Board will continue to increase its focus on Shell's and frame our strategy for the long-term success of the Company.
culture to make sure it continues to align with the business strategy.
As always, as we work through the energy transition, there is more that
Division of responsibilities needs to be done. Your Board is confident that the update presented
More information on how the Board and Board committees support at Capital Markets Day 2025 will help Shell to deliver on its promises
business operations is provided on pages 159-160. In 2024, the Terms to shareholders.
of Reference for the Board committees were reviewed and updated.
The full Terms of Reference for each committee, and the Matters
Reserved for the Board are provided on our website. Commitments
of Directors are reviewed to help ensure they have sufficient time to
fulfil their duties.

Composition, succession and evaluation

There were no changes to the Board in 2024. In 2024, Cyrus
Taraporevala became a member of the Remuneration Committee.
He will succeed Neil Carson as Chair of the Remuneration Committee
following the 2025 AGM.

The 2024 Board evaluation process comprised a Board Dynamics

review, as well as an internally facilitated questionnaire-based Board
and Committee evaluation. More on this can be found on pages
169-170.

Audit, risk management and internal control

Throughout the year, the Audit and Risk Committee (ARC)
assisted the Board in implementing sound systems of risk
management and internal control, oversight of Shell's financial
reporting, and consideration of ethics and compliance matters.
A variety of standing matters and more specific topics are
discussed by the ARC throughout the year and more on this
Sir Andrew Mackenzie
can be found on pages 176-187.
Chair
March 25, 2025
Looking ahead
Our Capital Markets Day 2025 outlines how we intend to accelerate
our strategy to deliver more value with less emissions.

151 Shell Annual Report and Accounts 2024

Governance

The Board of Shell plc

Sir Andrew Mackenzie Dick Boer Wael Sawan

Chair Deputy Chair and Senior Independent Chief Executive Officer
Director
Board Committee membership: Board Committee membership:
NOMCO (Chair) Board Committee membership: N/A
ARC | NOMCO | REMCO
British, 68. Appointed October 1, 2020; Chair Lebanese and Canadian, 50. Appointed
from May 18, 2021. Dutch, 67. Appointed May 20, 2020; Deputy January 1, 2023.
Chair and Senior Independent Director from
Career May 23, 2023. Career
Prior to joining Shell, Sir Andrew was CEO Wael began his career at Shell in 1997 as an
of BHP from 2013 to 2019 after joining BHP Career engineer with Petroleum Development Oman.
in 2008. As BHP CEO, he simplified and Dick was President and CEO of Ahold By the mid-2000s, Wael was Managing
strengthened the business, and made it the Delhaize from 2016 to 2018. Prior to the Director and Chairman of Shell Qatar, where
first miner to pledge to tackle emissions merger between Ahold and Delhaize, he he oversaw Shell's business in Qatar, including
caused when customers use its products. served as President and CEO of Royal Ahold its LNG and GTL divisions. Wael then became
From 2004 to 2007, he held various from 2011 to 2016. From 2006 to 2011, he Executive Vice President of Deep Water,
executive positions at Rio Tinto, including was a member of the Executive Board of where he was responsible for driving its
Head of Industrial Minerals and Diamonds. Ahold and served as Chief Operating Officer transformation into a leading business for
Prior to this, Sir Andrew spent 22 years with of Ahold Europe. Dick joined Ahold in 1998 Shell. Prior to being appointed CEO at the
bp, during which he worked across most as CEO of Ahold Czech Republic and was start of 2023, Wael joined the Executive
business streams and functions – principally appointed President and CEO of Albert Heijn Committee in 2019 as Upstream Director
in exploration and production, and in 2000. In 2003, he also became President and in 2021, he became Shell's Director
petrochemicals – and held senior and and CEO of Ahold's Dutch businesses. Before of Integrated Gas, and Renewables and
executive positions, including as Chief joining Ahold, Dick spent more than 17 years in Energy Solutions. Wael was a trustee of Shell
Reservoir Engineer and Chief Technology various retail positions, for SHV Holdings N.V. Foundation from 2019 to the end of 2022.
Officer. From 2005 to 2013, Sir Andrew in the Netherlands and abroad, and for Unigro
served as a Non-executive Director of N.V. Dick has chaired the Remuneration Relevant skills and experience
Centrica. He has also served on many Committee of Nestlé since April 2024. Wael holds an MEng from McGill University
not-for-profit boards, including public in Montreal, Canada, and an MBA from
policy think tanks in the UK and Australia. Relevant skills and experience Harvard Business School. During his Shell
Dick has a deep understanding of brands career, spanning more than 25 years, he
Relevant skills and experience and consumers, and extensive knowledge of has worked in Europe, Africa, Asia and the
Sir Andrew has more than 30 years' the US and European markets, from his time Americas, and has held roles across all of
experience in the mining and energy leading one of the world's largest food retail Shell's businesses. He has led several major
industries. In 2014, he was made a Fellow groups. He has considerable experience at commercial transactions, including mergers,
of the Royal Society, a Fellowship of many of the forefront of retailing and customer service, acquisitions and divestments, as well as new
the world's most eminent scientists. Sir Andrew which extended in more recent years to business development projects. Wael is an
has applied his deep understanding of the e-commerce and the digital arena. This exceptional leader, with all the qualities
energy business and geopolitical outlook to experience is most timely as Shell focuses needed to drive Shell safely and profitably
create public-private partnerships and advise on the growth of our marketing activities through its next phase of transition and
governments around the world. He continues and increasing consumer choices in energy growth. His track record of commercial,
to advocate for sustainable action on climate products. Dick brings sound business operational and transformational success
change, including access to affordable judgement and a proven track record in reflects not only his broad, deep experience
energy. His expertise is helping Shell strategic delivery to Shell, evidenced by the and understanding of Shell and the energy
navigate the energy transition. Sir Andrew combination of Ahold and Delhaize. He is sector, but also his strategic clarity. He
also champions gender balance, the rights also passionate about sustainability and is combines these qualities with a passion for
of Indigenous Peoples, and the power of well informed about the importance of the people, which enables him to get the best
large companies to make a positive various stakeholder interests in this area. from those around him.
contribution to society.
External appointments External appointments
External appointments ￮ Non-executive Director of Nestlé and ￮ No external appointments
￮ Chair of UK Research and Innovation SHV Holdings.
(UKRI) ￮ Chair of the Supervisory Board of Just Eat
Takeaway.com

152 Shell Annual Report and Accounts 2024

Governance | The Board of Shell plc continued

Sinead Gorman Neil Carson OBE Ann Godbehere

Chief Financial Officer Independent Non-executive Director Independent Non-executive Director

Board Committee membership: Board Committee membership: Board Committee membership:

N/A REMCO (Chair) | SUSCO ARC (Chair) | NOMCO

British, 47. Appointed April 1, 2022. British, 67. Appointed June 1, 2019. Canadian and British, 69. Appointed May 23,
2018.
Career Career
Sinead joined Shell in 1999 and has held Neil is a former FTSE 100 CEO. He joined Career
key leadership roles in Finance. She started Johnson Matthey in 1980 where he held Ann started her career with Sun Life of Canada
her Shell career in the Shell International several senior management positions in the in 1976 in Montreal, Canada. She joined M&G
Trading and Shipping Company based in UK and the USA, before being appointed Group in 1981, where she served as Senior
London, UK, and then moved to the Coral CEO in 2004. Since retiring from Johnson Vice President and Controller for both life and
Energy joint venture, in Houston, Texas, USA. Matthey in 2014, Neil has focused on his health, and property and casualty businesses
Sinead worked in Mergers and Acquisitions non-executive roles. He was Chair of TT throughout North America. She joined Swiss Re
and Treasury, based in the Netherlands, Electronics plc from 2015 until May 2020. in 1996, after it acquired the M&G Group and
before moving back to Houston as Vice served as Chief Financial Officer from 2003 to
President Finance for Shales. Prior to her Relevant skills and experience 2007. From 2008 to 2009, she was interim
appointment as CFO, Sinead held the Neil has an engineering degree, considerable CFO and an Executive Director of Northern
positions of Executive Vice President Finance operational experience and a strong Rock bank in the initial period following its
for Upstream; Projects & Technology, as understanding of capital-intensive businesses. nationalisation. Ann has held non-executive
well as Integrated Gas and New Energies He has a broad industrial outlook and a director positions at Prudential plc, British
(now Renewables and Energy Solutions). thorough commercial approach combined American Tobacco plc, UBS AG, and UBS
with a practical perspective on businesses. Group AG. Ann served as a Non-executive
Relevant skills and experience His intuitive international point of view helps Director of Rio Tinto plc and Rio Tinto Limited
Sinead has an MEng from the University of drive value in complex environments. Neil from 2010 until May 2019 and was also Senior
Oxford, and an MSc in Finance from London was awarded an OBE for services to the Independent Director of both entities. In January
Business School. chemical industry in 2016. 2021, Ann joined the Board of Stellantis N.V.,
and she chairs its Audit Committee. Ann joined
Sinead has more than two decades' Neil uses his experience to bring fresh the Board of HSBC Holdings plc in September
experience of working for Shell and has held insight and industry understanding to 2023 and HSBC Bank plc in January 2025.
regional and global finance leadership roles Board discussions.
across Europe and the USA. She has built a Relevant skills and experience
deep understanding of finance across the External appointments Ann is a former CFO and a Fellow of
industry, spanning a wide range of businesses, ￮ Non-executive Chair of Oxford the Institute of Chartered Professional
and possesses a breadth of experience in Instruments plc Accountants and a Fellow of the Certified
trading, new business development and General Accountants Association of Canada.
capital projects. She has more than 25 years of experience in
the financial services sector. Ann's extensive
Highly regarded for her commercial international business experience enables
abilities and external focus, Sinead has her to make significant and valuable
a strong track record in cost leadership, contributions and bring a global perspective
principle-based decision-making and to Board discussions. Ann's long and varied
detailed capital stewardship. international business career powered by her
financial acumen is reflected in the insights
External appointments and constructive challenges she brings to the
￮ No external appointments boardroom. As ARC Chair, Ann leverages her
background to ensure robust discussions are
consistently held as the ARC delivers its remit.

External appointments
￮ Non-executive Director and Audit
Committee Chair of Stellantis N.V.
￮ Senior Independent Director of HSBC
Holdings plc
￮ Independent Non-executive Director
of HSBC Bank plc

153 Shell Annual Report and Accounts 2024

Governance | The Board of Shell plc continued

Jane Holl Lute Catherine J. Hughes Sir Charles Roxburgh

Independent Non-executive Director Independent Non-executive Director Independent Non-executive Director

Board Committee membership: Board Committee membership: Board Committee membership:

REMCO | SUSCO ARC | SUSCO (Chair) ARC

American, 68. Appointed May 19, 2021. Canadian and French, 62. British, 65. Appointed March 13, 2023.
Appointed June 1, 2017.
Career Career
Jane was President and Chief Executive Career Sir Charles was Non-executive Chair of Legal
Officer of SICPA Securink Corporation's Catherine was Executive Vice President and General America from 2023 to 2025.
North American operations from 2017 to 2021, International at Nexen Inc. from January From July 2016 to June 2022, he was Second
when she assumed the role of Non-executive 2012 until her retirement in April 2013, Permanent Secretary, one of the most senior
Strategic Director. From 2018 to 2021, Jane where she was responsible for all oil positions within the UK's Treasury. In this role,
was a Non-executive Director of Atlas Air and gas activities including exploration, he was responsible for policy and oversight
Worldwide Holdings Inc. In 2013, she production, development, and project across a range of functions including financial
established and led the Council on activities outside Canada. She joined Nexen services, financial stability, infrastructure,
CyberSecurity, an independent not-for-profit in 2009 as Vice President Operational energy, science and research and
organisation with a global scope, committed Services, Technology and Human Resources. development, business investment, venture
to the security of an open internet. From 2015 Prior to this, Catherine was Vice President and growth capital, transport, and culture
to 2016, Jane was Chief Executive Officer of the Oil Sands at Husky Oil from 2007 to 2009 and creative industries. He was also Chair
Center for Internet Security, an independent not- and Vice President Exploration & Production of the HMT Operating Committee. Sir Charles
for-profit organisation that works to improve Services, from 2005 to 2007. She started her was Director General, Financial Services at
cyber security worldwide. From 2009 to 2013, career with Schlumberger in 1986 and held HMT from 2013 to 2016 and led the
Jane served as Deputy Secretary of the US key positions in various countries, including legislative process for the biggest reforms
Department of Homeland Security. From 2003 France, Italy, Nigeria, the UK, Canada, and in the UK banking sector in a generation
to 2009, she held various senior political and the USA. Catherine has held non-executive before being appointed Second Permanent
peacekeeping roles at the United Nations. director positions at SNC-Lavalin Group Inc, Secretary. Prior to HMT, Sir Charles spent
Jane started her career in the US Army in 1978, Statoil ASA and Precision Drilling Inc. over 25 years at McKinsey & Company and
serving in Berlin during the Cold War, on the obtained an MBA from Harvard Business
US Central Command Staff during Operation Relevant skills and experience School. While at McKinsey, he held a range
Desert Storm, and on the National Security Catherine contributes through her knowledge of senior positions. Sir Charles has worked
Council Staff under Presidents George H.W. of industry and the ease with which she for large banks, insurance companies, hedge
Bush and William J. Clinton. After retiring from engages with other Directors and managers funds and private-equity investors in strategy,
the military in 1994, she joined the Carnegie in the boardroom. With over 30 years of risk management, and organisation roles.
Corporation as an Executive Director of its industry experience, she brings a geopolitical Sir Charles also led major research efforts at
Commission on Preventing Deadly Conflict. outlook and deep understanding of the McKinsey and authored articles on strategy
industry. An engineer by training, she has and scenario planning.
Relevant skills and experience also spent significant time working in senior
Jane is a proven and effective leader, who has human resources roles. The Board highly Relevant skills and experience
held significant leadership roles in public service, regards her perspectives on our industry and Sir Charles' succession of roles placed him at
the military, and the private sector. She brings people. Catherine has a strong track record the nexus between industry and government,
a wealth of expertise in matters of public policy, of executing operational discipline with a and have included his active involvement
cyber security, and risk management to our focus on performance metrics and a drive for in forging and delivering energy policies.
Board. Jane is an experienced board director, excellence. Her knowledge of the technology He was an influential figure within HMT in
having served on the boards of large companies underpinning oil and gas operations, logistics, pioneering energy policy, including for
since 2016. These appointments have given her procurement and supply chains benefits the COP26, and providing funding for innovative
business perspectives across different sectors Board as it considers projects and investment organisations to support the energy transition.
and geographical regions. She has also served and divestment proposals. She uses her
on various committees including those which industry knowledge, combined with her External appointments
focus on audit, environmental and sustainability, commitment to the highest standards of ￮ Chair of Lloyd's of London (effective
nomination, and governance issues. corporate governance and safety, ethics and May 1, 2025)
compliance, in her role as Chair of SUSCO. ￮ Non-executive member of Global Council,
External appointments Herbert Smith Freehills
￮ Non-executive Director of Marsh & McLennen External appointments
￮ Non-executive Director of Union Pacific ￮ Non-executive Director of Valaris Limited
Corporation
￮ Strategic Director of SICPA Securink
Corporation

154 Shell Annual Report and Accounts 2024

Governance | The Board of Shell plc continued

Abraham Schot Leena Srivastava Cyrus Taraporevala

Independent Non-executive Director Independent Non-executive Director Independent Non-executive Director

Board Committee membership: Board Committee membership: Board Committee membership:

REMCO | SUSCO SUSCO ARC | REMCO

Dutch, 63. Appointed October 1, 2020. Indian, 64. Appointed March 13, 2023. American, 58. Appointed March 2, 2023.

Career Career Career

Abraham ("Bram") has been on the Board of Leena has dedicated her career to sustainability Cyrus was President and Chief Executive
Volkswagen AG, responsible for the Premium research and policy matters, and has held Officer of State Street Global Advisors from
Car Group, CEO of Audi AG, Chair of positions on boards of scale. She was Deputy 2017 to 2022. Cyrus has held numerous
Lamborghini and Ducati, responsible for Director General for Science at the International leadership roles in asset management
the VW Group Commercial Operations Institute for Applied Systems Analysis. Prior including at Fidelity, BNY Mellon, Legg
and Vice-Chair of Porsche Holding Salzburg. to this, she was an Executive Director at Mason, and Citigroup. Cyrus was previously
The Energy and Resources Institute (TERI), a not- a partner at McKinsey & Company, based
From 2011 to 2016, he was a member of the for-profit policy research organisation working in New York and Copenhagen.
Board of Volkswagen Commercial Vehicles on energy, environment and sustainable
and Executive Vice President responsible for development, and then Vice Chancellor of the He serves on the Board of two non-profit
Global Marketing, Sales & Services, New TERI School of Advanced Studies – a research organisations: The Trustees of Reservations, a
Business Models. In 2017, he became a university focused on sustainability education Massachusetts-based conservation organisation,
member of the Board of Audi AG. From 2006 based in India. Leena is a member of the UN and GBH, a public media producer, distributor,
to 2011, Bram was President and CEO of Technical Advisory Group on SDG 7, a broadcaster and content creator. He joined the
Daimler/Mercedes-Benz Italia & Holding Scientific Advisory Board Member of the Board of Pfizer Inc. in July 2024.
S.p.A. From 2003 to 2006, he was President European Forum Alpbach, and an advisory
and CEO of DaimlerChrysler in the Board Member of NAMTECH, an Indian Relevant skills and experience
Netherlands. Prior to this, Bram held a number technical education institute. She has served Cyrus brings a unique mix of strategic
of director and senior leadership roles within committees and organisations at international perspectives and business skills. He has
Mercedes-Benz in the Netherlands, having and national levels, including as energy and significant experience in driving organic
joined the business in 1987 on an executive climate adviser for the United Nations and and inorganic growth, and company
management programme. Member of the Advisory Committee at Future transformations. He is one of the most senior
Earth. She has also been a non-executive professionals in the asset management
Relevant skills and experience director of companies, including companies industry and has successfully led and
Bram has over 30 years' experience working involved in manufacturing and infrastructure. grown global businesses of scale. He
in the automotive industry. He was part of played a critical role in affirming State Street's
the transformation journey at Audi AG, which Relevant skills and experience reputation as both a stalwart and a pioneer
saw the car company become a provider Leena has served on sustainability advisory within the sector. At times, Cyrus was helping
of electric vehicles that offered sustainable boards of multinational companies, such as to implement change amid market uncertainty
mobility. He is able to leverage this The Coca-Cola Company, Caterpillar Inc. caused by geopolitical tensions and an
knowledge as Shell navigates its own and Suez Environment. She recognises evolving regulatory environment.
journey through the energy transition. the challenges large organisations face in
managing stakeholder priorities, including Cyrus also possesses a unique vantage
Bram brings his high regard for integrity balancing business, government and societal point on core board-related issues impacting
and compliance to board meetings. His needs, while pursuing a sustainability agenda. public companies including sustainability.
studies have encompassed innovation and As a member of the Cement Sustainability He has spoken about and published multiple
organisational effectiveness, geopolitical Initiative of the World Business Council for articles on climate risk and other aspects
environments, shareholder value, corporate Sustainable Development, she provided a of sustainability. He is credited with
social responsibility and risk management, pragmatic perspective on how to support the strengthening the sustainability credentials
which are all valued management tools. sector through its decarbonisation journey. of State Street Global Advisors.
She has a strong network of relationships
External appointments in multiple global institutions focused on External appointments
￮ Non-executive Director of Signify N.V sustainability and an understanding of ￮ Non-executive Director of Bridgepoint
￮ Non-executive Director of Cognizant the issues the energy sector faces. Group plc
Technology Solutions Corporation ￮ Non-executive Director of Pfizer Inc.
￮ Non-executive Director of Compagnie External appointments
Financière Richemont SA ￮ Member of the Independent Council of
Climate Experts of Edelman

155 Shell Annual Report and Accounts 2024

Governance | The Board of Shell plc continued

Sean Ashley Relevant skills and experience

Company Secretary Sean leads the Corporate Secretariat and the
British, 54. Appointed July 1, 2024. Group Disclosures and Securities Team in the
UK, USA and the Netherlands.
Career
Sean qualified as a solicitor in 1998 and has
Sean has held a variety of roles in the Shell
significant experience across a broad range of
Group since joining from private practice in
legal, regulatory, governance and compliance
2006, including most recently as Associate
matters, including UK listed company
General Counsel Conventional Oil and Gas.
securities and disclosure laws, UK corporate
Previous roles include leading the Shell Legal
governance and reporting requirements as
team on Shell's recommended combination
well as public company M&A.
with BG Group plc.

Board diversity

Gender diversity Non-executive Director sector experience

Non-executive Director tenure (years)

Director nationality

Ethnicity

The graphs above capture board diversity data as at December 31, 2024. For further information in relation to UK Listing Rule 6.6.6R(10)
and (11), see "Other regulatory and statutory information" on page 219.

Attendance Board member Meetings attended Board member Meetings attended

The Board met nine times during 2024. Dick Boer 9/9 Sir Andrew Mackenzie 9/9
Five of the nine meetings were held
Neil Carson [B] 8/9 Sir Charles Roxburgh 9/9
physically, one meeting in the
Netherlands, and four in London, United Ann Godbehere 9/9 Wael Sawan 9/9
Kingdom. Four meetings were held Sinead Gorman [C] 8/9 Bram Schot [E] 8/9
virtually. Attendance during 2024 Jane Holl Lute [D] 8/9 Leena Srivastava 9/9
for all Board meetings is given in the Catherine J. Hughes 9/9 Cyrus Taraporevala 9/9
table [A].

[A] For attendance at Committee meetings during the year, please refer to individual Committee Reports.
[B] Neil Carson was absent from the May 2024 Board meeting due to a scheduled business commitment.
[C] Sinead Gorman was absent from the July 2024 Board meeting due to personal circumstances.
[D] Jane Holl lute was absent from the March 2024 Board meeting due to personal circumstances.
[E] Bram Schot was absent from the September 2024 Board meeting due to a scheduled business commitment.

Director independence
All Non-executive Directors are considered by the Board to be independent in character and judgement. The Chair is not subject to the
UK Corporate Governance Code's independence test other than on appointment.

Ethnic diversity
The Board is satisfied that it currently exceeds the Parker Review recommendation on board diversity in the UK.

156 Shell Annual Report and Accounts 2024

Governance

Executive Committee
The Executive Committee of the Company comprises the Executive Directors, Wael Sawan and
Sinead Gorman, and those listed below (see "Governance Framework" on page 159).

Philippa Bounds Robin Mooldijk Rachel Solway Huibert Vigeveno Zoë Yujnovich
Legal Director Projects & Technology Chief Human Resources Downstream, Integrated Gas and
Director and Corporate Officer Renewables and Upstream Director
British, 54. Energy Solutions
Appointed July 2023. Dutch, 58. British, 51. Director Australian, 49.
Appointed July 2023. Appointed January 2024. Appointed October 2021.
Career Dutch, 55.
Philippa was previously Career Career Appointed January 2020. Career
General Counsel for Robin was previously Rachel joined Shell in Zoë has held various
Trading and Supply, Executive Vice President 1995 in Upstream in Career management positions in
based in London. She of Shell Chemicals and Aberdeen, Scotland. She Huibert was previously Downstream, Integrated
joined Shell in 2005 after Products. He was has since held HR roles Executive Vice President Gas and Upstream. She
a decade of working at appointed to that role in in manufacturing, LPG, Global Commercial. He served as Upstream
English and American August 2021, following lubricants and chemicals. joined Shell in 1995 as a Director, and was
law firms, specialising the integration of In 2016, Rachel was business analyst and led previously Executive Vice
in structured finance. Shell's chemicals and appointed Executive Vice Downstream businesses President Conventional Oil
manufacturing businesses. President HR Integrated across Shell in Europe, and Gas and prior to that
She has held legal roles Gas. She became the Africa, North and South Chair and Executive Vice
across Shell's businesses, Robin began his career Executive Vice President America, as well as Asia. President Shell Australia
including Senior Legal at Shell in 1991 at its HR Upstream in 2020 In 2009, Huibert was Pty Ltd. She joined Shell
Counsel in Gas and Research Laboratory before being appointed appointed Vice President from Rio Tinto in 2014
Power and in Corporate. in Amsterdam, the interim Executive Vice Supply & Distribution, to lead Shell's Oil Sands
She has also held several Netherlands, and since President HR Organisation Europe and Africa. In business in Canada.
advisory roles, including then he has held critical Development & Learning 2012, he became
special adviser to the EU roles, including General in May 2023. Executive Chair of Shell Zoë joined the Board of
Commission's Director Manager of Shell in China, and in 2016 Unilever plc in March
General Internal Markets Chemicals Europe, led the integration of 2025 as an independent
on securities laws. She has Managing Director South BG Group. Non-Executive Director
represented Shell on a African Petroleum and Vice and member of the
committee that worked President of Manufacturing Nominating and
with the UK government Americas. In 2018, he was Corporate Governance
on the introduction of the appointed Shell's Committee and Corporate
Companies Act 2006. Executive Vice President Responsibility Committee.
for Manufacturing.

157 Shell Annual Report and Accounts 2024

Governance | Executive Committee continued

Changes to the Executive Committee

On January 23, 2025, Shell announced that Huibert Vigeveno, Downstream, Renewables and Energy Solutions Director, will step down
effective March 31, 2025. It was also announced that Andrew Smith will be appointed Director, Trading and Supply, and Machteld de Haan
will be appointed Director, Downstream, Renewables and Energy Solutions.Their appointments are effective from April 1, 2025. On March 4,
2025, Shell announced that Zoë Yujnovich, Integrated Gas and Upstream Director, will step down effective March 31, 2025.

On March 4, 2025, Shell also announced that from April 1, 2025, leaders on the Executive Committee representing Integrated Gas; Upstream;
Downstream, Renewables and Energy Solutions; Trading and Supply; and Projects & Technology, will each be referred to as President of their
respective organisations, rather than Director. Functional leaders on the Executive Committee will be referred to as Chief Officer of their respective
functions. The changes to the Executive Committee structure are designed to support our strategy to deliver more value with less emissions, and as
part of our ongoing transformation.

Cederic Cremers will be appointed President, Integrated Gas, and Peter Costello will be appointed President, Upstream. Both Cederic and Peter
will join the Executive Committee from April 1, 2025. We thank Huibert and Zoë for their outstanding service and wish them success in all that
lies ahead.

Shell's financial reporting segments remain Integrated Gas; Upstream; Marketing, Chemicals and Products; Renewables and Energy Solutions;
and Corporate.

Andrew Smith Career

President, Trading Andrew was appointed Executive Vice President, Trading and Supply in 2017. Prior to
and Supply his current role, Andrew was Vice President, Downstream in Australia and subsequently
became the Executive Vice President, Upstream and Country Chair, leading the expansion
Australian, 60. of Shell's Liquid Natural Gas and Onshore Gas businesses in Australia. Andrew joined
Appointment effective Shell in 1986 as a refinery engineer and has worked across all of Shell's integrated value
April 2025. chains including leading Shell's petrochemical manufacturing business in Singapore.

Machteld de Haan Career

President, Downstream, Machteld joined Shell in 1998 and has had several leadership and geographically
Renewables and Energy diverse roles across the Downstream portfolio including Mobility, Strategy, Fleet Solutions,
Solutions Lubricants and most recently Chemicals and Products. Prior to being appointed to
lead Chemicals and Products, Machteld was Senior Vice President, Lubricants Americas,
Dutch, 51. which included being the CEO of Pennzoil Quaker State Company, and subsequently
Appointment effective became Executive Vice President, Global Lubricants.
April, 2025.

Cederic Cremers Career

President, Cederic was appointed Executive Vice President, Liquefied Natural Gas in August 2021.
Integrated Gas He joined Shell's Retail business in 2002 and has held a variety of finance and commercial
roles across Shell upstream and downstream businesses, including General Manager,
Dutch, 46. Shell Chemicals Europe; Vice President, Commercial and New Business Development,
Appointment effective Asia; and Executive Vice President and Country Chair, Russia.
April 2025.

Peter Costello Career

President, Upstream Peter was appointed Executive Vice President, Conventional Oil and Gas in November
2021 after serving as Senior Vice President of that same business. Peter joined Shell in
British, 59. 2016 as Vice President, Nigeria and Gabon following the company's combination with
Appointment effective BG Group, where he held geographically diverse senior roles across Downstream,
April 2025. Midstream, and Upstream, including President and Country Head, Kazakhstan.

158 Shell Annual Report and Accounts 2024

Governance

Governance framework

Board of Directors

The Company has a single-tier Board of Directors headed by a Chair, with executive management led by the Chief Executive Officer.
The names of the Directors who held office during the year can be found on pages 152-156. Information on the Directors who are
seeking appointment or reappointment is included in the Notice of Annual General Meeting.

There is no fixed number of times that the Board may meet in one year. During 2024, the Board met nine times (nine times during
2023) and, as detailed throughout our Strategic Report, including the Section 172 statement and activities undertaken throughout
the year, worked to promote the long-term sustainable success of the Company, generating value for shareholders and contributing
to wider society. Further information on the Board's work and assessments in relation to strategy, culture, engagement with
stakeholders, and its workforce can be found in this section.

The Board's responsibilities are governed by a formal schedule of matters reserved to it and include:
￮ Approval of overall strategy and oversight of management.
￮ Changes to the corporate and capital structure.
￮ Approval of financial reporting and controls, including interim dividends.
￮ Oversight of risk management and internal control.
￮ Approval of significant contracts.
￮ Determining succession planning and new Board appointments.
￮ Remuneration for the Chair and Executive Directors.
￮ Corporate governance matters.

Board Committees

Audit and Risk Committee ("ARC") Sustainability Committee ("SUSCO")

Nomination and Succession Committee ("NOMCO") Remuneration Committee ("REMCO")

More information on the composition of each of the Board committees, their purpose, roles and activities during the year is provided
on the following pages:

ARC 176-187 SUSCO 175-175

NOMCO 171-174 REMCO 188-190

159 Shell Annual Report and Accounts 2024

Governance | Governance framework continued

Board of Directors continued

Division of responsibilities
The roles of the Chair, a non-executive role, and the CEO are separate and clearly defined. The Board has agreed on their respective
responsibilities and set these out in writing. These documents are available on request from the Company Secretary.

Chair
￮ Responsible for ensuring that the Board and its committees function effectively. One way in which this is achieved is by ensuring
Directors receive accurate, timely and clear information; and
￮ Responsible for making sure that there is an adequate induction and training programme followed by all Directors (see page 164),
with assistance from the Company Secretary.

Deputy Chair/Senior Independent Director

￮ Sounding board for the Chair;
￮ Serves as an intermediary for the other Directors and shareholders; and
￮ Leads the annual appraisal of the Chair's performance.

Non-executive Directors
￮ Appointed by the Board or by shareholders at general meetings and, in accordance with the Code, seek re-election by
shareholders on an annual basis;
￮ Letters of appointment refer to a specific term of office in accordance with the provisions of the Code and the Company's Articles
of Association;
￮ Upon appointment, Non-executive Directors confirm they are able to allocate sufficient time to meet the expectations of the
role. Appointments are subject to a minimum of three months' notice of termination, and there is no compensation provision for
early termination;
￮ The Non-executive Directors bring a wide range and balance of skills and international business experience. Through their
contribution to the Board and Board committee meetings, respectively, they are expected to challenge and help develop
proposals on strategy and bring independent judgement on issues of performance and risk; and
￮ At every Board meeting, time is set aside for the Chair and Non-executive Directors to meet without the Executive Directors being
present. The Non-executive Directors discuss, among other matters, the performance of individual Executive Directors. A number
of Non-executive Directors also meet major shareholders over the course of the year.

Executive Management

Chief Executive Officer (CEO) Executive Committee (EC)

￮ Has overall responsibility for the implementation of ￮ Operates under the direction of the CEO in support of
the strategy approved by the Board, the operational his responsibility for the overall management of Shell's
management of the Company and the business enterprise business. The CEO has final authority in all matters of
connected with it; and management that are not within the duties and authorities
￮ Is supported in this by the EC that he chairs. of the Board or of the shareholders' general meeting; and
￮ EC members are listed in the Executive Committee
biographies on pages 157-158.

Governance documents available on shell.com/investors:

￮ Articles of Association
￮ Matters Reserved for the Board
￮ Board Committee Terms of Reference
￮ Modern Slavery Act Statement
￮ Shell General Business Principles
￮ Shell Code of Conduct
￮ Code of Ethics for Executive Directors and Senior Financial Officers

160 Shell Annual Report and Accounts 2024

Governance25

Board activities Some of the activities and areas of Board focus over the year are
summarised in the table below. The information in the table is not
exhaustive. Information on other topics discussed by the Board and
Board activities
details of the resulting decisions are covered elsewhere, primarily in
The Board works to a yearly meeting plan with corresponding agendas
the Section 172 statement provided earlier in this report on pages
and reading materials, provided digitally in advance of meetings,
145-148. In some cases, a brief outline has been provided below,
to support the Board in its oversight of the Group's operations and
and page references are provided for additional information.
management. Standing agenda items include reports from the CEO,
the CFO and the Chair of each Board committee. Other updates
Board off-site
throughout the year come from various businesses and key functions,
Each June, the Board and Executive Committee participate in a three-
including Investor Relations; Health and Safety, Security and
day programme, known as the "Board off-site", which takes place in a
Environment; Information Technology; Human Resources; and
priority country setting and serves to improve Board effectiveness and
Legal, as well as the Company Secretary. The Board also considers
strategic decision-making. The 2024 Board off-site was held in person
and approves the quarterly, half-year and full-year financial results,
in the Netherlands over three days. The event sought to deliver insights
shareholder distributions and the associated announcements, and,
into business strategy and operations. It also incorporated a visit to one
at most meetings, considers investment, divestment and/or financing
or more strategic assets and facilitated dialogue with the Netherlands
proposals and tracks performance. Additionally, the Board reviews
country chair, employees, contractors, regional country chairs, and
the Group's annual Operating Plan, including activities undertaken
external stakeholders, including customers and suppliers.
designed to meet the Group's carbon reduction targets. To enable
purposeful discussion and focus on particular aspects of agenda
The Netherlands is an important heartland for Shell. The Board and
topics, including the impact on key stakeholders, Directors have
EC members conducted a deep dive into each of Shell's businesses
an opportunity to specify information they require to be provided
in the country. Around this theme, the event provided for the following
in advance of Board meetings.
key discussion and engagement opportunities:
￮ visits to the Shell Energy and Chemicals Park Rotterdam and the
During the year, where possible, Non-executive Directors conduct site
Holland Hydrogen I construction site;
visits. The visits are designed to provide them with a deeper insight
￮ engagements with staff; and
into certain business operations.
￮ discussions with global energy-geopolitical experts and engagement
with the Prime Minister at that time.
See "Understanding and Engaging with our Stakeholders" on pages 165-166 and in
"Workforce Engagement" on pages 167-168.

Stakeholders
Topic Discussion/activity/updates included Examples of outcome/progress considered
Board leadership and company purpose

External ￮ Received updates on and discussed regional geopolitical ￮ Provided opportunity to ask questions on updates on A, B, C, D, E, F, G
business issues and market outlook. geopolitical issues and market outlook.
environment ￮ Considered feedback from investor community on quarterly
financial performance, including business segment results.

Strategy ￮ Reviewed and discussed ETS24. ￮ Alignment on outcomes from Board Off-site strategy sessions. A, B, C, D, E, F, G
￮ Reviewed and discussed progress of strategy including ￮ Received an overview of the business, divestments, projected
management recommendations. investments and opportunities.
￮ Reviewed and discussed the materials and proposed ￮ Approved OP24.
communication for Capital Markets Day 2025 (CMD25). ￮ Provided steer on draft CMD25 narrative and messaging.
￮ Directors participated in Board off-site strategy sessions.
￮ Reviewed and discussed the Group's Annual Operating
Plan for 2025-2027 (OP24).
￮ Received metrics demonstrating Shell's delivery of
CMD23 targets.
￮ Received updates pending the outcome of the Hague
Court of Appeal's ruling in the Milieudefensie case.

A – investor community B – employees/workforce/pensioners C – regulators/governments D – NGOs/civil society stakeholders/academia/think tanks

E – communities F – customers G – suppliers/strategic partners

161 Shell Annual Report and Accounts 2024

Governance | Board activities continued

Stakeholders
Topic Discussion/activity/updates included Examples of outcome/progress considered
Board leadership and company purpose continued

Climate ￮ Reviewed and discussed ETS24 metrics. ￮ Discussed and engaged with various stakeholders on the A, B, C, D, E, F, G
￮ Discussed and engaged with various stakeholders on the development of ETS24 and approved for ETS24 to be presented
development of ETS24. to shareholders for an advisory vote at the 2024 AGM.
￮ Considered shareholder proposed resolutions for the ￮ Delivering alignment of divestment and investment opportunities
2024 Annual General Meeting. with Shell's carbon reduction targets.
￮ Considered how carbon credits, divestments and
potential investment opportunities contributed to meeting
Shell's carbon reduction targets.
￮ Considered the nature and extent of the broader climate
change and energy transition risk across Board proposals
and further considered the potential influence on the
delivery of Shell's carbon reduction targets.
Culture

Shell People ￮ In December 2024, the Board reviewed the results of ￮ Having recognised that the 2024 Shell People Survey results B
Survey (2024 the 2024 Shell People Survey. were an indicator of the organisation's health, the Board
results) reflected on the role of people and culture in Shell's
transformation.

Staff updates ￮ Received updates from management and Board ￮ The Board was kept informed of health, safety and the B
Committees on organisational changes. environment with regard to Shell's staff and activities.
￮ Engagement through various sources such as Shell People ￮ The Board considered the impact of the organisational
Survey results, talent information, conduct and culture risk changes during the year and steps to address Shell
dashboard, Chief Ethics and Compliance Officer Report, People Survey results.
cultural information embedded in investment proposals.

Board staff ￮ Directors participated in in-person staff engagements ￮ Gained first-hand insight into the development and culture B
engagements on site visits. of operations and maintenance teams, as well as staff
￮ Received updates from management on staff perspectives on other matters of interest to our people.
achievements and outstanding contributions made ￮ Received practical examples of ways in which staff members
by our people. were exhibiting Shell's core values and contributing to society.
￮ In addition to the Board off-site in the Netherlands in June
2024, some Board members visited Shell's businesses in Qatar
and Oman at the beginning of 2024 and Brazil in April 2024.
They engaged with members of staff and got to observe the
strategy in action.

A – investor community B – employees/workforce/pensioners C – regulators/governments D – NGOs/civil society stakeholders/academia/think tanks

E – communities F – customers G – suppliers/strategic partners

162 Shell Annual Report and Accounts 2024

Governance | Board activities continued

Stakeholders
Topic Discussion/activity/updates included Examples of outcome/progress considered
Audit, risk and internal control

Safety and ￮ Received regular updates from management on safety ￮ Provided with commentary and examples of how safety B, D, E, F, G
environment and environment performance. continues to be upheld as important by staff.
￮ Throughout the year, Directors shared reflections and ￮ Gained perspective and brought diversity of thought to
insights on topics related to core values and safety. Board discussions by using learnings and insight gained
￮ Received regular updates from the SUSCO, including site outside Shell.
visit reports and engagement with stakeholders. ￮ Provided with insights into the views and priorities of
NGOs, communities and other stakeholders.

Risk ￮ Reviewed reports on Shell's top risks, external and ￮ Considered the effectiveness of the risk management A, E, F
management internal trends and emerging risks. and internal control system.
and internal ￮ Provided regular updates on potential impact of ￮ Received regular updates on Shell's top risks, as well as
control
external risk factors including geopolitical risk in the several risk deep dives, and continued discussions on the
Middle East and CrowdStrike cyber incident. risk appetite for these risks.
￮ Received reports on the performance of the Group's cyber
defences.
￮ Reflected on progress regarding risk management and
controls, pace and inherent risks to the digital
transformation strategy, and enhancements to
management of climate risk and disclosures.

Auditor ￮ Received recommendation on reappointment of ￮ Reappointment of external auditors submitted

appointments external auditors. to shareholders for approval.
￮ As part of the external audit tender, received ￮ Approved Audit and Risk Committee recommendation for
recommendation from the Audit and Risk Committee on auditor appointment for the financial year commencing
the appointment of external auditors for the financial January 1, 2026.
year commencing January 1, 2026.
Composition, succession and evaluation

Succession ￮ Received recommendations from the NOMCO regarding ￮ Kept regularly informed about succession planning A, B, D, E
planning succession plans and Board and committee composition. arrangements.
￮ Approved a recommendation from NOMCO that each
Non-executive Director continues to be considered
independent.
￮ Please see the "Nomination and Succession Committee"
section for further details.

Board and ￮ Conducted Board dynamics review in September 2024 ￮ Concluded that throughout the year, the Board, its A, B, D, E, F, G
committee which explored opportunities for the Board to further elevate committees and the Chair continued to operate effectively.
effectiveness its collective performance, noting strengths and opportunities ￮ Conducted the annual Board effectiveness review.
reviews
to develop. ￮ Please refer to the "Board evaluation" section for
￮ In January 2025, examined the Evaluation Report following further details.
a survey based on the requirements of the UK Corporate
Governance Code facilitated digitally by the Company
Secretary, on the effectiveness and performance of the
Board, its Committees and the Chair.

Board ￮ Reviewed Directors' tenure, external commitments, conflicts ￮ Approved committee membership change, approach A, B, D, E
membership, of interests, composition/membership of Board committees to conflicts of interest and appointments to the Board,
other and appointments. following recommendations made by the NOMCO.
appointments
￮ Approved a renewal of the Directors' terms and tenure,
where relevant.
￮ Please see the "Nomination and Succession
Committee" section for further details.

Talent overview ￮ Received updates on senior succession strategy. ￮ Enhanced insight into Shell talent and future leaders, B
and senior assurance of robust succession and contingency plans.
succession
review

A – investor community B – employees/workforce/pensioners C – regulators/governments D – NGOs/civil society stakeholders/academia/think tanks

E – communities F – customers G – suppliers/strategic partners

163 Shell Annual Report and Accounts 2024

Governance | Board activities continued

Stakeholders
Topic Discussion/activity/updates included Examples of outcome/progress considered
Remuneration

Remuneration ￮ Oversight of matters reviewed and considered by the ￮ Received regulatory, political and investor insights A, B, C
and reward REMCO. and updates relating to reward matters.
matters
Governance matters

Governance ￮ Provided with emerging corporate governance developments ￮ Considered the impact of the 2024 UK Corporate A, B, C, D, E, F
and updates relating to ethics and compliance matters. Governance Code.
￮ Reviewed the Modern Slavery Act Statement and assurance, ￮ Approved a single Group Modern Slavery Act Statement
and considered other regulatory and legislative for the Group.
requirements. ￮ Approved updates to the Committee Terms of Reference.
￮ Reviewed Matters Reserved for the Board and Board
Committee Terms of Reference.

Ethics and ￮ Reviewed the Chief Ethics and Compliance Officer's ￮ Ethics and compliance remain forefront in Board A, B, C, D, E, F
Compliance annual report. considerations and decision-making.

A – investor community B – employees/workforce/pensioners C – regulators/governments D – NGOs/civil society stakeholders/academia/think tanks

E – communities F – customers G – suppliers/strategic partners

Director induction and training

After being appointed to the Board, Directors receive a comprehensive induction tailored to their individual needs. This normally includes site visits and meetings
with senior management to enable them to build up a detailed understanding of Shell's business and strategy, and the key risks and issues that Shell faces.
Existing Directors are also able to join these visits to keep abreast of business developments and progress. Onboarding will continue to be phased and
prioritised based on forthcoming Board agenda items.
A digital onboarding book is provided to each new Non-executive Director. These onboarding books complement the existing digital Directors' Handbook
and feature:
￮ Overviews of scheduled briefing meetings customised to the Non-executive Directors' needs and linked to upcoming Board agenda items;
￮ Hyperlinks to key Shell publications (external and internal);
￮ Lists of common Shell acronyms;
￮ Key current materials on:
– Shell's safety and core values;
– Board governance;
– Group strategy and portfolio;
– Key businesses and functions; and
– Climate change and energy transition.
￮ Biographies of key executives;
￮ Other elements of the onboarding programme for Non-executive Directors include:
– Briefing meetings with key executives (both business and functional) customised to Non-executive Directors' needs and phased based on forthcoming
Board agenda items;
– Pairing up new Non-executive Directors in onboarding briefings to optimise learning while also providing opportunities for collegial relationship-building
and increasing efficiencies for the executives; and
– Site visits (either specifically for onboarding or by inviting the new Directors to committees' site visits).

164 Shell Annual Report and Accounts 2024

Governance

Understanding and engaging The Company's Registrar operates an internet access facility for
registered shareholders, providing details of their shareholdings.
with our stakeholders Facilities are also provided for shareholders to lodge proxy
appointments electronically. The Corporate Nominee service,
The Board values and recognises the importance of engagement facilitated by Equiniti, provides a facility for investors to hold
with our stakeholders. Time is dedicated to listening to different their shares in the Company in paperless form.
stakeholder views and our commitment to stakeholder engagement
is built upon the understanding that knowledge-sharing, widening of Shareholder engagement on AGM resolutions
experiences and adopting a learner mindset will help us achieve our At the 2024 AGM, shareholders voted on two climate-related
commercial, environmental and social objectives. The Board remains resolutions: (i) Resolution 22, which was an advisory vote on Shell's
grateful for the engagement opportunities it has had, including the Energy Transition Update – shareholders showed strong endorsement,
2024 AGM. with 78% of shareholders who voted casting votes in favour; and (ii)
Resolution 23, a shareholder resolution, submitted by an organisation
The Directors have continued to consider stakeholders' views in called Follow This on behalf of a small group of shareholders. The
Board discussions and decision-making, as described on pages resolution from Follow This was similar to their 2023 submission, which
145-148. Engagement with our stakeholders also goes beyond the was also rejected by shareholders, as its variations have been every
Board and is continuous. Our broader businesses regularly engage year since first being submitted in 2016. The resolution urged Shell to:
with stakeholders throughout the year, and in the build-up to or during "align its medium-term emissions reduction targets covering the
many Shell projects, activities, acquisitions and divestments. This greenhouse gas (GHG) emissions of the use of its energy products
engagement is often governed by formulated policies, control (Scope 3) with the goal of the Paris Climate Agreement: to limit global
frameworks, regulation and legislation. It may differ by region. warming to well below 2°C above pre-industrial levels and to pursue
efforts to limit the temperature increase to 1.5°". We remain committed
Site visits to constructive engagement with our shareholders, and we believe our
The Chair, certain Board committees and Non-executive Directors climate targets are aligned with the more ambitious goal of the Paris
traditionally visit several Shell operations and overseas offices in Agreement. The Board did not consider the proposal from Follow This
a given calendar year. The objective of these visits is to provide the to be in the best interest of the Company, its shareholders as a whole,
Directors with local context and deepen their understanding in the its customers, and the climate. Resolution 23 received support from
following ways, where relevant: 19% of shareholders who voted. Shell is aware that some shareholders
￮ provide insights into asset operations and portfolio positions; voted in support of both Resolutions 22 and 23, despite their
￮ opportunity to engage directly with stakeholders, including staff, conflicting content.
business partners, communities;
￮ improve the Board's oversight of top risks; and In 2024, the Chair, CEO and CFO hosted meetings with some of
￮ assess the Company's culture first-hand. our large shareholders. These meetings covered many topics. We
recognise and value the importance of stakeholder engagement when
Visits provide a good opportunity for Board members to engage considering our energy transition progress. The Board is grateful for the
with each other. For further information in relation to site visits, time and contribution of all those stakeholders who provided feedback,
see "Board Activities" on pages 161-164. and for the overall indications of support for Shell's strategy.

Shareholders Following the AGM, we engaged with our largest shareholders offering
The Chair, the Deputy Chair, the CEO, the CFO and the Executive further opportunities to discuss Shell's energy transition strategy and to
Vice President Investor Relations and Strategic Planning each meet understand the reasons behind various voting decisions. The Chair
regularly with major shareholders and report the views of such subsequently had an opportunity to engage directly with our large
shareholders to the Board. Committee chairs also seek engagement institutional shareholders during his roadshow in September 2024.
with shareholders on significant matters related to their areas of
responsibility. During the year, Sir Andrew Mackenzie, in his capacity These discussions have highlighted that some shareholders have
as Chair, met with more than 50 major shareholders, including during outlined societal pressure influencing media coverage and
four days of roadshows. A variety of topics were discussed with the expectations from beneficial owners as reasons for not aligning with
Chair, including performance, capital discipline and simplification of the Board recommendation. Others raised questions related to our
Shell; governance and Board priorities; and the Company's role in the intention to grow our LNG portfolio, using an LNG volumetric target
energy transition. In the early part of the year, the REMCO Chair met as an energy transition indicator in the 2024 scorecard, the changes
with more than 25 shareholders and discussed 2023 pay outcomes made to our Net Carbon Intensity (NCI) targets, and a new absolute
and implementation of the shareholder-approved Remuneration Policy Scope 3 ambition covering oil products.
for 2024 ahead of the 2024 AGM.
This feedback was added to the ongoing internal considerations of
Shareholders can contact Shell directly via the "Contact us" section of the Company's climate targets and ambition, along with the outcome
the Shell website. This allows investors' questions to be directed to the of the Milieudefensie Hague Court of Appeal hearing, Shell's strategy,
appropriate Shell team that can assist. The Shell website also provides progress since Capital Markets Day 2023, and the commitments that
contact details for our Registrar, Equiniti, shareholder queries, our Shell had made within its energy transition strategy.
media team, requests for copies of the Annual Report, and general
customer enquiries.

165 Shell Annual Report and Accounts 2024

Governance | Understanding and engaging with our stakeholders continued

Engagements in 2024
Information on engagements the Board has held during the year is summarised below. Information on engagement with other stakeholders
including the workforce is provided on pages 167-168. The way in which stakeholder interests were considered in principal decision-making
by the Board in 2024 (Section 172 statement) can be found on pages 145-148.

Engagement before event Event/activity Director attendance Outcome/insight

Remuneration roadshow – first-quarter 2024 engagement

Engagement was In March 2024, Neil Carson, Chair of the REMCO, presented the 2023 REMCO Chair Shareholders were provided with
undertaken before the remuneration outcomes and 2024 remuneration plans to investors. context and an explanation of the
meetings so that the The presentation included summaries on: REMCO deliberations in arriving at
Directors were provided ￮ reflections on the Company's financial performance, portfolio, and the 2023 pay outcomes and setting
with understanding and strategic delivery; the pay framework for 2024. They
insight on particular topics ￮ 2023 remuneration outcome; had the opportunity to ask questions
of interest. ￮ Implementation of the shareholder-approved Remuneration Policy and provide feedback.
for 2024, including impact of ETS24; and
￮ forward-looking agenda.
Annual ESG update 2024

Discussion with the Chair This annual engagement took place in March 2024 in London with CEO and CFO Any questions requiring follow-up
of the Board to ensure investors. It included an update on ESG matters of significance, including were addressed outside the
that key topics would Shell's 2024 Energy Transition Strategy. presentations. In some cases,
be covered. follow-up meetings were held
with stakeholders and the Chair
of the Board.
2024 AGM

Directors engaged with As well as the Company giving a balanced report of results and progress Board A number of additional engagements
investors ahead of the event at the AGM, shareholders had an opportunity to ask questions in person, including follow-up meetings and
on a number of matters, via the digital AGM platform, telephone, or submit questions via the Q&A answering of queries.
including those being voted desk outside of the auditorium.
on at the AGM.
Chair roadshow

The Chair of the Board The Chair of the Board provided an update on the governance Chair Provided the Chair with an
engaged with more than 50 of Shell and gave key investors opportunities to ask questions. opportunity to listen to key
large institutional investors Key topics included governance, remuneration, energy transition institutional shareholders and
during two roadshows in and business outlook. to provide Board perspective
April and September 2024. on topics such as governance,
energy transition, business and
management performance.
Director visits

Discussions were held with In June 2024, the Board and Executive Committee visited the Directors The Board gained an insight into
the respective Directors Netherlands. More information on this visit can be found on page 161. the development and culture of the
ahead of the visit to operations and maintenance teams.
formulate the agenda Two additional Board visits took place in 2024: to Qatar and Oman in The use and impact of digitalisation
and encourage a natural, January and to Brazil in April. The Chair attended both trips and was tools were highlighted, and the
open dialogue in the accompanied by a sub-set of the Board including representatives of both future environmental capabilities
group sessions. the Audit and Risk Committee and the Sustainability Committee. The visit of the sites were discussed.
programme focused on general Board-related matters plus areas of
particular importance to both committees. The Chair also visited Brasilia,
and met with the British Ambassador, Minister of Finance and Vice-
President of Brazil/Minister for Development, Industry and Trade.

In October, the Chair visited China to deliver an energy lecture to

Tsinghua University School of Economics and Management, to participate
in the School of Economics and Management's Advisory Board, and to
present to the finalists of the Shell Eco-marathon.

More information on these visits can be found on page 167.

166 Shell Annual Report and Accounts 2024

Governance

Workforce engagement Board's direct engagements with the workforce

Informal engagement – Board
As with all the UK Corporate Governance Code's provisions, boards
NOMCO members met with various senior leaders and high-potential
must consider the size and structure of their business, including its
individuals throughout the year.
international scope, and select an approach to engaging with the
workforce that most practically delivers the underlying spirit and Off-site visits
ambition of the Code. Workforce engagements during Board and/or meetings off-site.
Meeting talent/leadership teams.
The Code states that its use of the term "workforce" is not meant to
The Chair undertaking staff engagement sessions.
align with legal definitions of workforce, employee, worker or similar
terms. But for a global organisation bound by the laws of more than Through these more formal engagements, the Chair and other Non-executive
70 countries, blurring the clearly prescribed legal definitions that affect Directors (either individually or in groups) have deepened their understanding
complex issues (such as local health, safety, security and environment of how the Company's purpose, strategy and values are embedded in particular
businesses, sites and countries. This continues to give insight into progress made,
(HSSE) requirements, work contract terms, legal accountability,
risks and opportunities. The benefits are mutual. The Board obtains direct insight
employment rights) or merging two definitions of the same term into local business operations and projects, and local strengths and challenges.
could have a notable impact on the business, its operations and its Our people have a chance to better understand the Board and to provide direct
stakeholder relationships (including with suppliers). As a result, Shell feedback on topics of importance to them, their business or function and their
considers its workforce to be employees of companies in the Shell location.
Group. The Board also engages with others outside this group (for Shell Qatar
example, on site visits), and some of this engagement is shared
on page 165. In Qatar, the group had discussions on how the business is optimising value
through integration and efficiencies, followed by a visit to the Pearl GTL gas-to-
liquids plant and the LNG North Field Expansion Project. While the Chair
Although our reporting and formal engagement focuses predominantly participated in a staff engagement session, the rest of the group visited the
on our employees, all individuals working on Shell sites (including Shell Qatar Shell Research Centre. There was a dinner with the extended leadership
offices) are required to undertake certain Shell training (for example, team of Qatar Shell, and a lunch with the Minister for Energy and senior leaders
on matters relating to HSSE and the Code of Conduct). Adhering to in QatarEnergy.
the Life-Saving Rules and the Code of Conduct compliance obligations Shell Oman
is included within our contracts with suppliers. Shell employees,
contractors and third parties with whom Shell has a business In Oman, the programme entailed deep dives on business strategy,
opportunities and risks, diversity, equity and inclusion (DE&I), and social
relationship can report any potential breaches of the Code of Conduct performance. It also incorporated a site visit to the Block 10 oil-producing field,
confidentially through several channels, including anonymously through a dinner with the Minister for Energy, and an informal evening with staff.
a global helpline operated by an independent provider.
Shell Brazil
For many years, Shell has recognised the importance of engaging The Brazil programme started in Rio de Janeiro, home to Shell Brasil's head
with its workforce. Engagement is especially important in maintaining office and where the upstream business in-country operates from. Here the
strong business delivery in volatile times of change. We strive to Board members engaged in a roundtable of approximately 10 senior external
stakeholders including former senior government officials and thought leaders.
maintain a dialogue between management and our workforce –
While the Chair had a staff engagement session, other Board members met
both directly and, where appropriate, engagements take place DE&I network leads. Board members then travelled to Sao Paolo to meet with
with union and employee representatives at asset and country level, as leaders and staff of the Raízen biofuels joint venture for discussions on
well as with the Shell European Works Council. Management regularly business opportunities and risks, the potential for biofuels in Brazil and
engages with the workforce through elected employee representatives globally, and sustainability considerations.
and a range of formal and informal channels. These channels include
webcasts and all-employee messages from the Chief Executive Officer The programme concluded with a visit to the Bomfim Advanced Biofuels and
Renewable Natural Gas Plant and adjacent sugar-cane plantations to hear first-
(CEO) and other senior leaders, as well as town halls, team meetings,
hand about the agricultural activities, technology, challenges and opportunities.
site visits by the Board and EC, internal social platforms and online
publications via our intranet. Shell Netherlands

The Board and Executive Committee (EC) visited the Netherlands over three
The Board considers effective engagement a key element of its days in June for their annual off-site visit and Board meeting. The visit provided
understanding of the Company's ability to create value, because significant opportunities for workforce engagement on our strategy and the
it recognises that our people are our greatest asset. Workforce energy transition.
views can help inform the Board on matters such as operational
effectiveness, Shell culture, diversity, equity and inclusion, identifying Over the three days, the Board and EC engaged with the workforce in a range
of different ways, including business briefings covering Shell's integrated value
risk and opportunity, and developing and delivering strategy. We chain in north-west Europe, the mobility business in the Netherlands, the
believe these engagements enable Shell to maintain a constructive Upstream business in the Netherlands, and how Shell is applying digital
employee and industrial relations environment. innovation to support decision-making and deliver value. They had lunch with 60
staff members from various functions, including those active in DE&I networks,
The Board considers the current workforce engagement approach and dinner with 24 members of the leadership team in the Netherlands.
As referenced in our Board activities section on page 161, the Board and EC
to be effective, and feedback from employees indicates that they
also visited the Shell Energy and Chemicals Park Rotterdam and the Holland
too find the interactions valuable and worthwhile. The information Hydrogen I construction site. Here the Board and EC engaged in site
provided in the following table gives examples of various methods interactions and lunch with staff at both sites.
of Board engagement.
Shell China

In October 2024, the Chair visited China to deliver an energy lecture to

Tsinghua University School of Economics and Management, to participate in
the School of Economics and Management's Advisory Board, and to present
to the finalists of the Shell Eco-marathon, followed by dinner.

167 Shell Annual Report and Accounts 2024

Governance | Workforce engagement continued

Formal reports and information updates to the Board Risks

Shell People Survey The Board reviewed reports on Shell's top risks, external and internal trends
and emerging risks.
Through the results of the Shell People Survey (an anonymous survey, facilitated Organisational culture
externally), the Board was provided with an update on employee engagement
levels, and the quality and resilience of leadership across Shell's workforce. The The Board has continued its discussion on the strategy, including powering
Board was informed of a broad range of subjects, including principal metrics, lives. The Board also focused on diversity, equity and inclusion ambitions.
with particular focus on rewards, working conditions, workload and reputation. Chief Ethics and Compliance Officer Report
The Board considers the Shell People Survey to be one of its key tools for Data and insights include information from the Global Helpline, the Shell
measuring employee engagement, motivation, affiliation and commitment to Ethics and Compliance organisation and the Shell People Survey.
Shell. It provides insights into employee views and has a consistently high
response rate. In 2024, the response rate was 86%, down 2% from 2023. The The ARC is kept updated when matters highlighted through the Global Helpline
Board also considers this engagement to understand, for example, how Shell is are investigated. The ARC is also informed about the associated remediation.
using the survey outcomes in: i) data analytics, for example, to identify potential See "Audit and Risk Committee Report" on page 176-187.
correlative relationships between employee engagement and safety or ethics Assurance activities
and compliance incidents; and ii) strengthening Company culture and values.
See also "Powering lives" section on page 117. Assurance activities, including items raised by businesses and functions
(through the Group Assurance Letters process) and assurance (from Internal
Senior Succession and Resourcing Review Audit, HSSE, Ethics and Compliance, Reserves Assurance and Reporting,
Financial and Non-Financial Reporting), provide additional evidence to the
The annual Senior Succession and Resourcing Review focused on the strength
Board of the commitment to high standards of risk management and internal
of senior leadership and plans for its development and succession, while
control. The assurance activities ensure that work can be done safely, within
highlighting the breadth, depth and diversity of its pipeline, the developing
regulatory frameworks.
profile of the leadership cadre, and recruitment and attrition levels.
The information provided within these reports further supports the Board's
The Senior Succession and Resourcing Review also highlighted the effectiveness
annual review of the effectiveness of the Group's system of risk management
of succession planning, the impact of its associated execution, and the data-
and internal control, and feeds into the Group scorecard, against which staff
driven, integrated approach to leadership and leadership development. The
bonuses are calculated.
review continues to focus on proactive management of Shell's talent pipeline,
and on advancing Shell's diversity agenda with increased attention on gender, The Shell Performance Framework
race and ethnicity, LGBT+ and disabilities.
Significant HSSE, Ethics and Compliance, and more broadly, business control
Assessment of key trends and material incidents incidents are brought to the attention of senior management, the Board, and,
as appropriate, the Board Committees, through regular reporting.
Presented by the Chief Ethics and Compliance Officer. This is based on the
established channels for staff and others to file complaints or report on During these discussions, the Board seeks to learn more from incidents and
suspected breaches in relation to the Shell General Business Principles (SGBP), ensure that the business continues to drive safety performance.
the Code of Conduct or any breaches of laws or regulations, including
accounting control and auditing concerns.

The assessment covers Shell employees and our wider stakeholder base. The
Board (also via the ARC) obtains insight into incidents and reporting levels and
remediation. These provide indicators of conduct risks and, together with the
related Board reports noted below, suggest the strength of embedding and
awareness of the Code of Conduct and SGBP obligations and employees'
comfort levels in raising incidents.

168 Shell Annual Report and Accounts 2024

Governance

Board evaluation

Board review process Insight

The 2024 Board evaluation process comprised: The feedback from Board Directors was positive throughout their
responses to the evaluation. Views were provided on a number of
(a) Board Dynamics review topics including: composition and diversity; skills, capabilities and
The review, which took place in September 2024, was structured to competencies; engagement with, and/or challenge of, management;
reflect on the current state of Board practices, focusing on opportunities atmosphere in the room; management of meetings; the support the
for the Board to further elevate its collective performance, noting where Board and Board committees receive; strategic focus; oversight of
there are strengths as well as opportunities to develop. The review, risk and risk management; stakeholder engagement; and any
supported by the Chief Human Resources Officer and the Company priorities for 2025.
Secretary, involved one-to-one discussions between the Chair and each
Non-executive Director as well as plenary discussions with the Board Board dynamics
and Executive Committee. A number of key themes and focus areas Noting also the Board Dynamics review, the Non-Executive Directors'
were identified as part of the review, including: (i) preparing for the support and challenge of management rated well, with the Non-
next phase of key strategic decision points for the Company; (ii) Executive Directors welcoming extra informal time with the EC as
deepening the Board's relationship with non-Board members of the planned for future meetings.
Executive Committee; (iii) balancing how the Board continues to best
act as a collective, while recognising the strengths and diversity of Board oversight
individual members needed to maximise performance; and (iv) The Board's oversight in framing and setting the Group's strategy rated
continuing to sharpen the onboarding process. A number of highly, as did the Board's understanding of the capacity of the Group
actions to address these findings are under way. to deliver and its monitoring of external developments. Strategy was
identified as a continued area of focus for 2025. The Board's oversight
(b) Internally facilitated questionnaire-based Board and of risk and risk management rated highly, with risk appetite and risk
Committee evaluation mitigation continuing to be a priority. The Board's oversight of the
Taking into account the structure and output from the 2024 Board development of senior talent and success planning rated highly,
Dynamics review, it was recommended that NOMCO conduct an with the process considered to be well organised.
in-house review (similar to the 2023 process). The form of the
questionnaires were appropriately adjusted to reflect the output from Management of meetings
the Board Dynamics review and Board members responded to those Themes included continued: (i) focus on interaction between Non-
questionnaires, which were shared at the end of 2024, with results executive Directors and EC members to more fully leverage the skills of
discussed at the January 2025 Board and committee meetings. individual Non-executive Directors as appropriate outside of the formal
Separate questionnaires were produced for the evaluation of the Chair, Board setting; and (ii) engagement with external speakers to bring
and the Board committees. In addition, the Chair held separate one-to- diverse and external perspectives into the boardroom on key issues
one discussions with each of the Non-executive Directors to assess their facing Shell.
individual performance during the year. To broaden the inputs into the
evaluation process, members of the EC participated in the evaluation Overall, the Board was found to be functioning well, with a high level
process, also completing questionnaires relating to their attendance of commitment from both the Non-executive and Executive Directors.
at Board meetings. The Company Secretary produced a feedback There are good personal relationships, amid a collegial spirit, with a
summary providing recommendations to the Directors. This report was high degree of mutual respect. Directors are able to share opinions
shared with the Chair, NOMCO and subsequently all Board members. and offer guidance and feel that they are heard. The agenda has been
broad and the committees have complemented the Board agenda to
ensure that the Board has covered the areas viewed to be key.

169 Shell Annual Report and Accounts 2024

Governance | Board evaluation continued

Feedback themes for the committees

The committees were considered to be well chaired and well operated
Statement of compliance with the
and received excellent input from senior management. All committee UK Corporate Governance Code
reviews provided focus on meeting management and effectiveness,
oversight, and performance improvement opportunities. Each The Board confirms that, throughout the year, the Company has
committee analysed topics specific to their respective forum. The applied the principles, both in spirit and in form, and complied with
committees also provided feedback on the implementation of the provisions set out in the current UK Corporate Governance Code
recommendations from the 2023 evaluation process. issued by the Financial Reporting Council (FRC) in July 2018 (the
"Code"), with the exception of Provision 5 noted below. In January
Chair evaluation 2024, the FRC published a new version of the UK Corporate
The Deputy Chair communicated feedback to the Chair, who was Governance Code, which will apply to the 2025 Annual Report.
considered to have built and maintained strong relationships with A copy of the Code can be found on the FRC's website: frc.org.uk.
the Executive and Non-executive Directors. He was also thought
to communicate well, be constructive and open at all times, Shell's governance arrangements have been considered alongside
encouraging all Board members to make a full contribution to the Code. The information set out in the Directors' Report, including
discussions. References to his accessibility and openness to input the Board committee reports on pages 171-190, is intended to provide
from others were made and these are valued across the Board. an explanation of how the Code's principles were applied practically
throughout the year. We also provide clear and meaningful
Delivery against the 2024 ambitions explanation below where we believe stakeholders may benefit
The Board continued to focus on being a well-functioning Board from more specific information on a particular Code provision.
and spent additional time on strategic matters, including with
Workforce engagement (Provision 5)
respect to the implementation of ETS24 and the continued delivery
The size and diversity of our employee base and wider workforce have
on CMD23, focusing on shareholder value and operating expenditure
complicated the feasibility of implementing any of the three specific
efficiencies. With respect to risk oversight, the Board continued
workforce engagement methods recommended in the Code. The Board
to optimise the work of both the Board and the Audit and Risk
believes that its current approach to workforce engagement continues
Committee on risk-related matters.
to be pragmatic and effective, particularly when considered against
the required coverage needed for a global organisation, such as
Planned enhancements for 2025
Shell. Elsewhere in this Annual Report, we explain how our people are
The 2024 Board evaluation provided areas of focus or priorities for
essential to the successful delivery of the Shell strategy, and how the
2025, including: (i) CMD25 and longer-term strategy; (ii) continued
Board recognises the importance of understanding their views through
Non-executive Director engagement with members of the EC outside
engagement. During the year, the Board and individual Directors were
the formal Board setting; and (iii) continued engagement with external
able to visit our sites across the world, which helped the Board engage
speakers to bring diverse and external perspectives to the boardroom
with parts of the workforce and gain insight into the work, culture and
on key issues facing Shell. Other items identified which are already
impact of Shell in communities. During these engagements, there were
being progressed in 2025 include enhancement of Board skills and
opportunities for the Board to speak with our stakeholders and obtain
capabilities; further focus on risk appetite and risk mitigation; and
feedback. The Board also intends to keep the effectiveness of the
continued improvement to pre-read materials.
engagements under review. Stakeholder engagement also continues
to be enhanced in management reporting.

More information on the current approach and a description of the channels used by
the Board, its committees and the Executive Committee are outlined in "Workforce
engagement" on pages 167-168.

AGM voting (Provision 4)

At the 2024 AGM, 21.97% of shareholders who voted voted against a
resolution proposed by the Board which related to the approach Shell
was taking with regard to its energy transition strategy. Provision 4 of
the Code requires certain actions to be undertaken if 20% or more of
shareholders vote in a way which is different to what the Board
recommended. There are three stages to these actions. First, explain
when announcing the voting results what actions the Company intends
to take to consult shareholders to understand the reasons behind the
voting result. Shell included this explanation with its voting results,
published on May 21, 2024. Second, an update on the engagement
with shareholders should be published no later than six months after
the shareholder meeting. This statement was added to the Shell
website on November 1, 2024. Third, a final summary of the
engagement and the actions taken should be included within the
Annual Report. This information is provided on page 165.

Corporate governance requirements outside the UK

In addition to complying with applicable corporate governance
requirements in the UK, the Company complies with the rules of
Euronext Amsterdam and Dutch securities laws because of its listing
on that exchange. The Company, likewise, adheres to US securities
laws and the New York Stock Exchange (NYSE) rules and regulations
because its securities are registered in the USA and listed on the NYSE.

170 Shell Annual Report and Accounts 2024

Governance

Nomination and Succession Committee membership and attendance for 2024

Committee

Focus areas for 2024

￮ Non-executive Director and Executive Committee succession.
￮ In-depth Board Dynamics review, as part of annual Board
and Committee evaluation, to accelerate effectiveness.
￮ Continued talent engagements with key staff and succession
candidates.

% of
Priorities for 2025 Meetings meetings
￮ Non-executive Director and Executive Committee succession. Committee member Member since attended attended
￮ Continued talent engagements with key staff and succession Sir Andrew Mackenzie
candidates. (Chair of the Committee) October 1, 2020 4/4 100%
￮ Externally facilitated Board and committee evaluation. Dick Boer May 19, 2021 4/4 100%
Ann Godbehere October 27, 2021 4/4 100%

Purpose
The Nomination and Succession Committee (the "NOMCO") leads the
process for appointments to the Board and Senior Management [A]
positions, ensures plans are in place for orderly, well-planned
succession, and oversees the development of a diverse succession
pipeline of candidates. It also reviews the Company's policy, targets
and strategy on diversity, equity and inclusion (DE&I), and monitors
the effectiveness of these initiatives. It makes recommendations to
the Board on corporate governance guidelines, as referred to in
the Chair's introduction.
[A] In this section of the report, "Senior Management" refers to the Executive Committee
and the Company Secretary, as defined by the UK Corporate Governance Code.

Talent management and succession

The NOMCO is fully engaged with the end-to-end talent management
and senior succession planning approach that is deployed within Shell.
It plays a key role in senior succession and resourcing. Retaining in-
depth knowledge of the individuals within the talent pipeline is a
NOMCO priority. The NOMCO makes time to personally meet and
engage with numerous individuals within the pipeline. The NOMCO's
oversight and input extend from recruitment to leadership identification
and from leadership development to leadership appointment, all of
Sir Andrew Mackenzie which are underpinned by clearly articulated talent priorities and a
Chair of the Nomination and Succession Committee commitment to advancing DE&I across Shell.

The NOMCO manages Board and supports Senior Management

succession under a structured, proactive methodology. The processes
have clear and agreed selection principles for short-, medium- and long-
term succession and are aligned with Shell's strategic priorities.

For Non-executive Director succession, the NOMCO continues to

follow its Principles for the Strategic Composition of the Board, adding
factors as they evolve. These principles include both quantitative and
qualitative principles, considering:
￮ the overall aspired Board composition and diversity of age; gender;
race; ethnicity; educational, social, geographical and professional
backgrounds; skills; knowledge; and experience that align with the
Company's strategy including among other criteria consideration
of the skills and strengths needed for the energy transition; and
￮ the values, attitudes, and behaviours expected of Directors.

171 Shell Annual Report and Accounts 2024

Governance | Nomination and Succession Committee continued

During the year, the Principles for the Strategic Composition of the Diversity of leadership
Board were reviewed and updated. The NOMCO also focused on The NOMCO recognises that continuing to improve all types of
the future needs for the Board's composition, including size and tenure, diversity at each level of the Shell Group is crucial. Shell aims to be
skills and experience, and the DE&I requirements of the UK Listing an inclusive workplace where everyone feels valued and respected
Rules, FTSE Women Leaders and the Parker Review. The current size and has a strong sense of belonging. The NOMCO's review of
of the Board was considered to be appropriate, also taking account diversity objectives and strategies for the Shell Group as a whole
of Committee memberships. Greater flexibility around Non-executive also monitors the impact of diversity and inclusion initiatives.
tenure continues to be an area of focus. Although Shell does not
publish its Principles for the Strategic Composition of the Board, its In February 2021, Shell published its aspirations for DE&I under
Board Diversity Policy (which was first published in March 2024) is the Powering lives goal, with a focus on four areas of gender, race
available on the Company's website. This Policy highlights that Shell and ethnicity, LGBT+ and disability inclusion. For more details on the
aims for a gender balance on the Board, with at least one senior Board progress against our ambitions for women hired and women in Senior
position (Chair, CEO or CFO) held by a woman. In addition, Shell's Leadership, see pages 117-118.
target is to maintain the representation of both men and women at, or
above, a minimum of 40% [B].We believe that this allows Shell to be "Senior Leadership" is a Shell-specific measure based on compensation
truly representative of all genders and gender identities and provides grade levels. This is different from what we are required to report under
flexibility during periods of change. Further, Shell aims to maintain the Code, which is female representation in Senior Management and
or exceed having at least one Board member from a minority ethnic their direct reports, where the percentage is 32%.
background. For more details on the progress against these targets
see page 174. Nationality diversity, such as Asian and American talent, continues to
[B] These targets align with those set by the FCA under the UK Listing Rules, and all such be managed in accordance with the business outlook and we have a
targets on Board diversity remain subject to applicable equalities legislation, including strong focus on progressing race and ethnic minority representation.
the Equality Act 2010 (as amended from time to time) and its provisions on discrimination.
In line with the recommendations from the 2023 Parker Review, Shell
has reviewed its ambitions for ethnic minority representation at the
See "Other regulatory and statutory information" on page 219.
Senior Management level and aims for 15% Senior Management
positions [C] to be occupied by ethnic minority executives by
For Senior Management succession, the selection principles include December 2027. As at the end of 2024, 15% of Shell's Senior
process-specific elements, such as a clear and proactive approach Management identifies as being from an ethnic minority group.
to identifying and developing succession candidates. The principles [C] Senior Management here refers to senior leadership based in the UK and is a Shell
measure based on compensation grade levels. We have moved to this Shell definition
also outline the long-term structured nature of the succession planning of Senior Management for 2024 onwards to align with our self-identification data
process. There is also strong focus on ensuring that the principles reflect collection and processes.
the leadership qualities required for future business success and that
they advance the progress of diversity in all its forms. Although the NOMCO monitors Shell's organisational DE&I strategies
and initiatives, it also holds itself accountable for the Board's own
Senior Management principles feature in the NOMCO's review diversity and inclusion. Back in 2020, the Board's diverse composition
of the succession plans which occurs in every committee meeting. Using met the Hampton Alexander requirements (now FTSE Women Leaders)
the principles, the NOMCO implements any changes through a well- and, in 2024, it met the Parker Reviews' objectives by reflecting 42%
defined and diligent process with overall Board engagement. The women representation with three Directors from a minority ethnic
NOMCO agrees on candidate profiles and meets prospective background. Shell's Board diversity is aligned with the targets set by
candidates well ahead of any selection decision being necessary. UK Listing Rules. The position of CFO is held by a woman and three
It also engages the Board early in the process to ensure all Directors Directors are from a minority ethnic background.
have an opportunity to meet and assess prospective candidates.
Consequently, some of the leaders with whom the NOMCO and See "Powering lives" on pages 117-119 for more information on DE&I in Shell.
Board engaged extensively in the past became or are about to
become members of the Board (Wael Sawan and Sinead Gorman) or
the Executive Committee (most recently, Andrew Smith, Machteld de
Haan,Cederic Cremers and Peter Costello whose appointments are
effective April 1, 2025).

During 2024, the NOMCO's annual in-depth look at the status and
succession plans for Senior Management within Shell, along with the
review of the talent pipeline in line with the business, was undertaken
by the full Board. The Board reflected on the simplification of the senior
leadership structure with clear accountabilities achieved in 2024 with
a view to the further evolvement of the composition of the total workforce
and of the organisation's culture as an enabler for performance.

172 Shell Annual Report and Accounts 2024

Governance | Nomination and Succession Committee continued

The People Strategy and diversity, equity and inclusion Shell has an inclusive Board environment, comprising individuals that
Diversity continued to be a key area of focus during the year. In 2024, are suitably qualified. They have the required skills, industry expertise,
Shell published a new Board Diversity Policy further to a breadth of perspective and high-quality decision-making capabilities
recommendation by the NOMCO. The policy is aligned to the to support the strategy and overall direction of Shell.
requirements of the UK Corporate Governance Code and includes our
targets for Board diversity, as well as complementing Shell's wider See "The Board of Shell plc" on pages 152-156 for details about the skills and backgrounds
diversity policies and embracing Shell's values, Code of Conduct and of individual members.
sustainability goals. Currently, this policy is not applied to the
individual Committees, although we strive to apply diverse
representation across the Committees. DE&I across Committee From a gender perspective, the Board comprises five female directors
membership remains an ongoing consideration. A copy of the Board and seven male directors, which equates to 42% female representation
Diversity Policy is available on our website, shell.com/investors/ (2023: 42%, 2022: 55%). Two of the four main Board committees are
environmental-social-and-governance/board-of-directors. chaired by a female director.

In relation to Board director appointments and diversity, the NOMCO While the Board aspires to achieve gender parity, progress against
oversees the development of a diverse pipeline for succession to diversity targets is sensitive to the size of the Board. In respect of other
the Board and monitors that all Board appointments are subject forms of diversity, three members of the Board self-identify as being
to a formal, rigorous and transparent procedure and that such from an ethnic minority background [D]. In accordance with the Board
appointments are based on merit and objective criteria taking into Diversity Policy, the Board firmly believes that diversity fosters a
account (among other things) factors such as diversity of gender, broader range of perspectives, resulting in improved Board
age, educational and professional background, social, ethnic and effectiveness, decision-making and outcomes.
geographical background and cognitive and personal strengths. [D] Ethnic minority refers to an individual who self-identifies as Asian, Black, Mixed/multiple,
or other ethnic minority group, in line with UK Office for National Statistics classifications

To this end, the NOMCO is responsible for engaging an independent

executive search consultant, who assists in preparing shortlists
of candidates, co-ordinating interviews and seeking references.
In accordance with the Board Diversity Policy, the NOMCO only
engages with external search firms who are able to align with
Shell's approach to DE&I in identifying suitable individuals from
diverse pools of candidates.

Under the Board Diversity Policy, the Board commits to:

￮ Ensuring an inclusive environment: Through inclusive behaviours and
practices, we aim to create an environment in which every Board
member feels valued, respected and empowered to contribute fully.
￮ Ensuring support for External Best Practices: The Board endorses and
supports external best practices, such as the FTSE Women Leaders
Review, Parker Review and others, to maintain and enhance diversity
within the Board.
￮ Ensuring that Board appointments are managed with rigour and
transparency: Candidates are evaluated based on merit, skills,
experience, qualifications, performance and business considerations,
with due regard for diversity factors.
￮ Ensuring regular Board composition reviews: The Board regularly
assesses the composition of the Board, including age, gender, race,
ethnicity, educational, social, geographical and professional
backgrounds, skills, knowledge and experience, making
recommendations for necessary adjustments.

173 Shell Annual Report and Accounts 2024

Governance | Nomination and Succession Committee continued

Committee activity

In addition to its considerations regarding succession, the NOMCO The NOMCO continues to monitor and review this area, considering
made recommendations on corporate governance guidelines, whether and how current Company governance matters should be
monitored compliance with corporate governance requirements and strengthened. Further insight on some of the NOMCO's areas of
made recommendations on corporate governance-related disclosures. consideration in 2024 is provided below.

Topic of discussion/example of Committee activity Topic of discussion/example of Committee activity

Succession [A] Board membership and other appointments

Recommendation ￮ Changes to the composition of the Board Directors' tenure, external ￮ Non-executive Director appointments and changes
committees. commitments, conflicts of to committee membership.
￮ Appointment of Company Secretary. interest and succession
planning
Oversight ￮ Shell diversity, equity and inclusion and the Board
Diversity Policy.
Topic of discussion/example of Committee activity
Engagement ￮ Talent engagements.
Governance
Topic of discussion/example of Committee activity Regulation, legislation ￮ Reviewed its Terms of Reference, and the Terms
Talent overview and senior succession review and other governance- of Reference for other Board committees and
related guidance the Matters Reserved for the Board.
Shell Senior Succession ￮ Enhanced insight on Shell talent and ￮ Received corporate governance updates,
and Resourcing Review future leaders. including with respect to the UK Corporate
covering Executive ￮ Assurance of robust succession and Governance Code.
Director and EC contingency plans.
succession, EC direct Shell plc matters ￮ Considered any potential conflicts of interest and
reports, the senior the independence of the Non-executive Directors.
executive group and the ￮ Reviewed additional external appointments
overall talent pipeline requested by Directors, with specific focus on the
time allocated to all commitments.
￮ Determined the process for the 2024 Board
Dynamics review and internal Board Evaluation
(see page 169 for an overview of the process and
the outcome of the evaluation).

[A] The NOMCO was assisted during 2024 by Russell Reynolds Associates ("Russell Reynolds") and, more recently, by Korn Ferry (UK) Limited ("Korn Ferry"), both of which are external global
search companies whose main role was to propose suitable candidates. Neither Russell Reynolds nor Korn Ferry has any connection with the Company other than that of search consultants.
The Chair does not participate in discussions regarding his own succession. Russell Reynolds and Korn Ferry are signatories to The Voluntary Code of Conduct for Executive Search Firms,
which aims to improve board diversity.

Executive Committee succession

The NOMCO undertakes comprehensive engagement to understand who the candidates are for senior roles, what personally
drives them and how they will ensure Shell achieves its strategic ambitions.

Succession for senior roles is planned well in advance and reviewed regularly. Succession planning is a crucial, ongoing
consideration and not just an area of focus when an Executive Committee (EC) member change is anticipated. The Board oversees
Shell's succession planning process in which selection is the final step of a rigorous, sophisticated and well-planned process.

For Executive Director and EC appointments, the NOMCO has set a structured process:
￮ Before any potential decision on resourcing, it explicitly describes the requirements of the role and the candidate profile.
￮ By working in a planned, consistent manner, last-minute surprises are avoided and well-considered decisions are made in line with
evolving business requirements.
￮ It also plans for the unexpected and maintains a list of candidates capable of stepping into senior roles to provide cover if necessary.

The NOMCO spends time getting to know the candidates to ensure that the pipeline is robust, diverse and adaptive. The NOMCO
ensures it has visibility of today's and tomorrow's leaders. Over the last few years, the NOMCO has met many leaders and had extensive
engagements with each of them. Some of these leaders now sit on the EC, others were appointed to the Board (Wael Sawan and Sinead
Gorman).

The NOMCO engages across the executive talent pipeline to ensure it interacts with and becomes familiar with talent at different
levels of the organisation; for example, on a regular basis informal engagements are held with employees from a range of businesses,
functions and backgrounds prior to a Board meeting. Not only does this engagement support senior succession, it also provides a helpful
element of the NOMCO's workforce engagement.

The Board is proud that candidates for the most senior leadership roles have primarily come from within the business, demonstrating that
the leadership development and succession process remains effective.

174 Shell Annual Report and Accounts 2024

Governance

Sustainability Committee Committee membership and attendance for 2024

Focus areas for 2024

￮ Shell's sustainability progress.
￮ Respecting nature.
￮ Powering lives.
￮ Emerging non-financial risks.

Priorities for 2025

￮ Shell's sustainability performance.
￮ Respecting nature.
￮ Powering lives.
￮ Emerging non-financial risks with a focus on nature
and social elements.
% of
Meetings meetings
Purpose Committee member Member since attended attended
The roles and responsibilities of the Sustainability Committee (the
"SUSCO") are set out in its Terms of Reference, which were last Catherine J. Hughes (Chair) November 1, 2017 4/4 100%
reviewed and revised in December 2024. A copy is available on Neil Carson OBE June 1, 2019 4/4 100%
shell.com. Bram Schot October 1, 2020 4/4 100%
Jane Holl Lute May 24, 2022 4/4 100%
The updated Terms of Reference revise the SUSCO's Purpose to assist
the Board of Directors in fulfilling its responsibilities by reviewing the Leena Srivastava March 13, 2023 4/4 100%
performance of Shell with respect to sustainability, reviewing and
monitoring relevant emerging trends including regulatory developments
in sustainability, and reviewing and monitoring the non-financial elements Overview
of Shell's strategy, with a focus on nature and social elements. The SUSCO meets regularly to review performance on sustainability
with focus on Respecting nature and Powering lives.
"The SUSCO focused on Shell's sustainability The SUSCO also reviews selected sustainability topics and matters
progress in 2024, with particular attention of public concern and helps the Board review existing and emerging
to Respecting nature and Powering lives." impacts, risks and opportunities including regulatory developments.

As directed by the Board, the SUSCO may also review environmental,

social and governance (ESG) and safety matters in more detail.

The SUSCO also reviews and considers external stakeholder

perspectives on sustainability issues of relevance to the Group's business.

In line with the strategic importance of the SUSCO's agenda,

the Chair of the Board and the CFO attend committee meetings.

Activities
During 2024, the SUSCO reviewed the progress made on sustainability
including progress on Respecting nature and Powering lives.

The sustainability topics and matters of public concern considered

in particular depth by the committee included biodiversity, nature-
based solutions and methane emissions.

The SUSCO provided input to Shell's annual reporting and disclosures

on sustainability. The SUSCO Chair held meetings during the year with
senior leaders to discuss specific topics.

Site visits
Catherine J. Hughes In 2024, members of the SUSCO visited Brazil, Qatar and Oman as
Chair of the Sustainability Committee part of Board site visits. These visits deepen directors' understanding
of how the Company's strategy is being implemented. Members of the
SUSCO give particular attention to sustainability topics during these
visits. See Board activities on pages 161-164 for further information
in relation to Board site visits.

175 Shell Annual Report and Accounts 2024

Governance

Audit and Risk Committee Report Topics addressed in 2024 included: deferred taxes and tax exposures;
the impact on tax balances and disclosures as a result of windfall and
minimum taxes around the world; significant portfolio developments;
Dear Shareholders,
litigation; impairment trigger assessments; impairment charges
I am pleased to present our Audit and Risk Committee (the ARC)
and reversals; accounting for complex contracts; dividend distribution
Report for 2024.
capacity; and mark-to-market derivatives accounting, including the
impact of volatile gas and power markets.
The ARC assists the Board in fulfilling its oversight responsibilities in
areas such as the integrity of financial reporting, the effectiveness of
We received briefings from the Chief Internal Auditor on the outcomes
risk management and internal controls, as well as the consideration
of significant audits and notable control matters. We also received
of ethics and compliance matters. We are responsible for assessing
briefings from the Chief Internal Auditor and the Executive Vice
the quality of the audit performed by, and the independence
President (EVP) Controller on the effectiveness of Shell's risk
and objectivity of, the external auditor. The ARC also makes a
management and internal control system.
recommendation to the Board on the appointment or reappointment
of the external auditor. In addition, we oversee the work and quality
The impacts of climate change and the energy transition continue
of the internal audit function.
to touch on many aspects of the ARC's work, including the financial
statement impacts. The ARC also considered sustainability-related
Our work programme over the course of a year focuses on a variety of
disclosures required in accordance with the Corporate Sustainability
matters that involve a high degree of judgement and/or are significant
Reporting Directive (CSRD).
to Shell's Consolidated Financial Statements. We review with
management the sources of estimation uncertainty and other key
The ARC, recognising the evolving nature of climate change risks and
assumptions against the backdrop of economic and market uncertainty
responses, concluded that climate change has been appropriately
and volatility, climate risk and the energy transition and evolving
considered by management in key judgements and estimates and
stakeholder expectations. In addition, we consider the robustness
agreed with the disclosure made by management.
of the risk and internal control framework, results of internal control
testing performed throughout the year, and remediation activities.
As noted in last year's report, during 2023, the tender process for
the appointment of the external auditor was commenced, with a view
"The primary role of the ARC is to assist to reaching a conclusion during 2024. We completed the process
the Board in fulfilling its oversight during 2024 and the ARC recommended to the Board that EY be re-
appointed as the Company's external auditor in respect of the financial
responsibilities in areas such as the integrity year ending December 31, 2026. Further information with respect to
of financial reporting, the effectiveness this process is set out on page 186.

of risk management and internal controls, During 2024, the ARC received updates on the implementation of the
as well as the consideration of ethics Shell Performance Framework. Focus topics for 2024 included Trading
and Supply; CSRD implementation, Shell's Carbon Management
and compliance matters." Framework, regulatory developments, for example in relation to UK
corporate governance reforms, fraud and sustainability reporting
regulations; information risk management, including cyber security;
and pensions.

As part of its oversight of compliance with applicable legal and

regulatory requirements, including monitoring ethics and compliance
risks, the ARC discussed with the Group Chief Ethics and Compliance
Officer activities undertaken in the ethics and compliance programme
related to compliance with data privacy laws and regulations and
artificial intelligence (AI), and steps taken to manage those risks.

In 2024, members of the ARC visited Oman, Qatar and Brazil as part
of Board site visits. These site visits deepen directors' understanding
of risks and opportunities, as well as their understanding of how the
Company's strategy is being implemented. See "Understanding and
engaging with our stakeholders" for further information in relation
to Board site visits.

On a final note, the ARC recognises the strong commitment and

dedication of the financial and non-financial reporting teams and
would like to thank them for all their efforts during 2024.

Ann Godbehere Ann Godbehere

Chair of the Audit and Risk Committee
Chair of the Audit and Risk Committee March 25, 2025

176 Shell Annual Report and Accounts 2024

Governance | Audit and Risk Committee Report continued

All ARC members are financially literate, independent Non-executive

Focus areas for 2024 Directors. In respect of the year ended December 31, 2024, for the
￮ External audit tender. purposes of the UK Corporate Governance Code, Ann Godbehere
￮ Information risk management, including cyber security. qualifies as: a person with "recent and relevant financial experience"
￮ CSRD implementation. and competence in accounting, and, for the purposes of US securities
￮ Regulatory developments, including corporate governance laws, an "audit committee financial expert".
reforms, fraud and sustainability reporting regulations.
￮ Trading and Supply. The experience of the ARC members outlined on pages 152-156
￮ Carbon Management Framework. demonstrates that the ARC as a whole has competence relevant
￮ Pensions. to the sector in which Shell operates, and the necessary commercial,
regulatory, financial and audit expertise required to fulfil its
responsibilities. The ARC members have gained further knowledge
and experience of the sector as a result of their Board membership
Priorities for 2025 and through various in-person and virtual site visits since their
￮ Trading and Supply. respective appointments.
￮ Regulatory developments, including corporate governance
reforms, fraud and sustainability reporting regulations. The ARC invites the CFO, the Legal Director, the Chief Internal Auditor,
￮ Information risk management, including cyber security. the EVP Controller, the Vice President Group Appraisal and Reporting
￮ Pensions. and Deputy Controller and the external auditor to attend each
￮ Treasury. meeting. The CEO, the Chair of the Board and the Company Secretary
may also attend ARC meetings. Other members of management attend
when requested on specific topics or to provide input on more detailed
technical matters that may arise. The ARC regularly holds private
Committee membership and attendance for 2024 sessions separately with the Chief Internal Auditor and the external
auditor without members of management present (except for the Legal
Director who may attend). Outside of the formal ARC meetings, the
Chair of the ARC meets regularly with each of the following: the CFO,
the EVP Controller, the Chief Internal Auditor and the external auditor.

Committee remit
The roles and responsibilities of the ARC are set out in its Terms of
Reference and are reviewed annually (last reviewed and updated
in December 2024, a copy of which can be found on shell.com).
The key responsibilities of the ARC include, but are not limited to:

Risk management and internal control

￮ assisting the Board in reviewing the emerging, principal and other
significant risks facing the Group;
During 2024, the members and meeting attendance of the ARC ￮ monitoring the effectiveness of the risk management and internal
were as follows: control framework; and
￮ reviewing proposed related party transactions as described within
% of
the Terms of Reference.
Meetings meetings
Committee member Member since attended attended
Financial reporting
Ann Godbehere (Chair) May 23, 2018 6/6 100%
￮ reviewing the integrity of the financial statements, including annual
Dick Boer May 20, 2020 6/6 100% reports, half-year reports and quarterly financial statements;
Cyrus Taraporevala March 2, 2023 6/6 100% ￮ reviewing the potential impacts on the consolidated financial
statements of the implementation of the Company's strategy,
Sir Charles Roxburgh March 13, 2023 6/6 100%
climate change and the energy transition;
Catherine J. Hughes May 23, 2023 6/6 100% ￮ advising the Board whether, in the ARC's view, the Annual Report
[A] In addition to the six meetings, as part of its activities in 2024, the ARC held taken as a whole is fair, balanced and understandable and provides
additional meetings in relation to the external audit tender process. the information necessary for shareholders to assess the Company's
position and performance, business model and strategy;
￮ reviewing and discussing with management the appropriateness
of judgements involving the application of accounting principles
and disclosure rules;
￮ providing oversight in respect of material non-financial reporting
disclosures with respect to corporate sustainability as applicable
to the Company's annual reports, half-yearly reports and quarterly
results releases;
￮ reviewing management's assessment of going concern and longer-
term viability; and
￮ reviewing, in conjunction with management, the Company's policies
with respect to earnings releases, financial and non-financial
performance information and earnings guidance provided to
investors and financial markets.

177 Shell Annual Report and Accounts 2024

Governance | Audit and Risk Committee Report continued

Compliance and governance

￮ reviewing the functioning of the Shell Global Helpline and reports
Focus areas for 2024
arising from its operation; and
￮ overseeing compliance with applicable legal and regulatory
requirements, including monitoring ethics and compliance risks.
The ARC met with senior leaders from various business and function
Internal audit areas to discuss the adequacy, design and operational effectiveness
￮ monitoring the qualifications, expertise, resources and independence of risk management and controls related to the critical activities carried
of the internal audit function; out by their respective business or function. The discussions included
￮ approving the internal audit function's charter and the annual information on any enhancements to strengthen controls and how
internal audit plan to ensure alignment with the key risks of areas identified for improvement had been addressed; the monitoring
the business; of activities around key risks; and the steps being taken to identify
￮ reviewing with the Chief Internal Auditor, the Company's new or emerging areas of risk.
management and the external auditors any significant matters
arising from internal audits and assessing management's response In addition to the significant accounting and reporting considerations
to internal audit findings and control weaknesses as appropriate, discussed on pages 181-182, the business and function areas reviewed
including potential improvements and agreed actions; and by the ARC in 2024 included the following:
￮ assessing internal audit's performance and effectiveness each year. ￮ Shell Performance Framework -- the ARC received updates on
progress with the implementation of the Shell Performance
External audit Framework (SPF) following its introduction in July 2023. The ARC
￮ reviewing and monitoring the independence and objectivity of the discussed with management how the SPF is being applied in
external auditor; practice, including simplification of standards and cultural change
￮ considering the annual external audit plan and approving related from a performance, discipline and simplification perspective.
remuneration, including fees for audit and non-audit services; ￮ Trading and Supply (T&S) – the ARC was briefed in relation to the
￮ assessing the performance and effectiveness of the external auditor T&S organisational mandate, governance and oversight committees,
and the audit process, including an assessment of the quality of the including in relation to financial risk management and stress-testing.
audit; and The ARC also received an update regarding process, data and
￮ recommending to the Board that it put to the Company's transformation systems.
shareholders for approval at the Annual General Meeting (AGM) ￮ CSRD implementation -- the ARC received regular updates in relation
a resolution to appoint, reappoint, or remove the external auditor. to the additional disclosures required by the CSRD, including the
challenges with the reporting, the double materiality assessment
The ARC's responsibilities as set out in its Terms of Reference form the and assurance requirements.
basis of the ARC's annual work plan, which is adjusted as appropriate ￮ Regulatory developments – the ARC was briefed regularly
throughout the year. In addition, the ARC annually identifies certain regarding regulatory developments and their implications for
business and function areas to focus on during that year. The focus Shell, including for example, in the UK, in relation to the 2024
areas generally encompass aspects of risk management and internal Corporate Governance Code and the Economic Crime and
control, financial reporting and compliance. The ARC is authorised to Corporate Transparency Act 2023. In addition to CSRD, the
seek any information it requires from management and external parties ARC was briefed in relation to other UK, US and EU sustainability
and to investigate issues or concerns as it deems appropriate. The ARC reporting developments.
may also obtain independent professional advice at the Company's ￮ Pensions – the ARC received an overview of the pensions landscape,
expense. No such independent advice was requested in 2024. including the defined benefit landscape, and was updated in relation
to the transfer of certain US pensions liabilities which was completed
The ARC keeps the Board informed of its activities and in January 2024 and proposals in relation to the Dutch pension
recommendations, and the Chair of the ARC provides an update to the arrangements.
Board after every ARC meeting. The ARC discusses with the Board if it
is not satisfied with or believes that action or improvement is required Site visits
concerning any aspect of financial reporting, risk management and During the year, members of the ARC visited Oman, Qatar and Brazil
internal control, compliance or audit-related activities. as part of Board site visits. See "Understanding and engaging with our
stakeholders" for further information in relation to Board site visits.

178 Shell Annual Report and Accounts 2024

Governance | Audit and Risk Committee Report continued

Risk management
and internal control

The ARC assists the Board in reviewing the emerging, principal and For 2024, reviews included overall assessment of the risk landscape,
other significant risks facing the Group and in fulfilling its responsibilities including controls, exception reporting and SIAI observations as well as
in relation to risk management and internal control. In order to monitor deep dives on specific areas. The ARC also regularly reviews the status
the effectiveness of the procedures for internal control over financial of management's SOX 404 testing of controls and remediation actions
reporting, compliance and operational matters, the ARC reviews to address any identified weaknesses. The ARC and management also
reports on risks, controls and assurance, including the annual discussed the steps taken to maintain an effective control environment
assessment of the system of risk management and internal control. and to further demonstrate "management in control" during the year.
The ARC also reviews management's evaluation of the internal control
of financial reporting as required under Section 404 of the Sarbanes- It is important that the ARC monitors and learns about relevant evolving
Oxley Act (SOX 404). The ARC updated the Board on compliance external developments in a timely fashion. Accordingly, the ARC
with internal controls across the Shell Group and on any major is regularly briefed on developments in the legal, regulatory and
matters for which action or improvement was recommended. financial reporting landscape that could affect the Company.

Activities performed Frequency In 2024, the ARC dedicated time to the following topics:
￮ Tax risks – In addition to the regular review of Shell's tax provisions,
Risk management and internal