Socially responsible investors include social, environmental and/or ethical factors in deciding which stocks or bonds to buy, keep or sell. Over the last decade this has become increasingly important, leading to the creation of sustainability indices to measure and track the economic, social and environmental performance of companies.
Carbon Disclosure Project
The Carbon Disclosure Project (CDP) is an independent not-for-profit organisation. It was launched in 2000 to collect corporate information on climate change and we provide our data to the project every year.
CDP released its latest report in November 2015. With a high score of 99% we were included in the Carbon Disclosure Leadership Index rankings – the top 10% of the total regional CDP sample population.
Our overall score was the second-highest of the major international oil and gas companies.
Dow Jones Sustainability Index
We have been included in the 2016 Dow Jones Sustainability Index (DJSI), which ranks the performance of companies using a variety of social and environmental indicators. Shell was included on the basis of our business principles, environmental and social standards, and in line with our corporate governance performance that underpins our approach to sustainable development.
We were previously included in the DJSI every year since its inception in 1999 until 2010, remaining in the top 10% within the oil and gas sector. From 2011 until 2012 we were not included based on DJSI’s view of the operations of Shell companies in Nigeria, although our score was above the threshold for inclusion.
Coinciding with the release of the 2013 score, the DJSI Index Design Committee, which reviews the results, advised that Shell’s exclusion had been lifted, noting the “efforts of Shell to improve standards and increase transparency” and the “efforts of Shell to provide more information about the complexities of operating in Nigeria throughout the year”. However, from 2013 to 2015 we were not included in the DJSI, although we continued to score highly.
We were included in the FTSE4Good Index in 2016, as we have been every year since it started in 2001. Companies must meet the index’s criteria on governance, the environment including climate change, and social aspects including labour standards and human rights.
Goldman Sachs last updated their GS sustain Esg (environmental, social and governance) research in early 2012, at which time it placed us third among international oil companies. The research focuses on sustainable investing in the energy sector. Companies are rated according to 25 indicators across the categories of corporate governance, leadership, labour, communities and investment and environment.