In a recent report, Greenpeace China criticized Shell Asphalt (Shanghai) Company Limited for not disclosing the failure of its domestic waste water in passing a sample test by the local Environment Protection Bureau. Shell Companies in China made announcement about this case on its website in July 2009 (www.shell.com.cn). We would like to make the following statement again. Shell Asphalt (Shanghai) Company Limited is a joint venture (referred to as the JV hereafter), where Shell has a 75% shareholding. Its main product is asphalt concrete. On April 28, 2008, Shanghai Minhang Environment Protection Bureau conducted a routine inspection on the premises and detected exceeding limit COD (Chemical Oxygen Demand) in its domestic waste water. An immediate JV examination found that this was caused by a worn-out part of the treatment equipment. The JV immediately replaced part and solved the problem. The JV subsequently communicated this action with the local Minhang Environment Protection Bureau. Meanwhile, the company made long-term improvement plan to discharge its domestic waste water to the city central waste water treatment system. The JV invested RMB 150,000 on this rectification plan. On June 17 2008, the JV updated the short-term improvement and submitted the long-term rectification plan to the Minhang Environment Protection Bureau, who approved both. On July 21, 2008 the long-term rectification project was completed and accepted by the Shanghai Water Bureau, who issued to the JV the Discharge Certificate On August 7, 2008. The JV, on August 15, reported this progress to the Minhang Environment Protection Bureau, who appraised the JV actions.
Sustainable development is a business principle and a core value of Shell’s. Shell requires all projects and joint ventures to adhere to this principle. We clearly recognise that we need to further strengthen our environment management in line with relevant laws and regulations. We will carry out regular self-audit and inspections to identify, resolve and communicate related issues in a timely manner. | 
