Digitalisation and Collaboration for a Lower Carbon Energy Future.
Dec 18, 2020
Speaking virtually at the NetEase Future Conference in Hangzhou, China, Carlos Maurer, Executive Vice President, Global Commercial, Shell, outlines how Shell can work with China’s digital leaders to help drive a lower carbon future.
China Digitalisation NetEase Speech 2020
Title: China Digitalisation NetEase Speech 2020
Duration: 13 minute 52 seconds
Description:
A speech by Shell Executive Vice President Carlos Maurer to China digital leaders on how digitalisation and collaboration will help drive a lower carbon future.
[Text Display]
Digitalisation and Collaboration for a Lower Carbon Energy Future.
NetEase Future Conference
December 2020
[Video Footage]
Aerial view of highways curling at intersection with lines over laid illustrating digital connection.
[Video footage]
Carlos Maurer standing in a room talking to camera during the speech the angle changes several times between a wider shot and a close up shot.
[Carlos Maurer]
Distinguished guests, ladies and gentlemen.
It is a great honour for me to speak to such an influential group of digital leaders.
My name is Carlos Maurer.
I lead Global Commercial –
[Text]
Name card showing “Carlos Maurer, EVP Global Commercial, Shell”
[Carlos Maurer]
Shell’s business-to-business marketing organisation
[Text]
Text builds “8,000 employees 1M business customers 150 markets”
[Carlos Maurer]
of 8,000 people. We serve more than 1 million business customers in 150 markets around the world.
[Video Footage]
Oil being poured from a bottle into car engine.
[Voice of Carlos Maurer]
We develop and sell lubricants and greases that help our customers’ engines and machinery
[Video Footage]
Steam turbine turning.
[Voice of Carlos Maurer]
work as efficiently as possible.
[Video Footage]
Split screen shows bitumen being laid on a new road from a construction vehicle as wells as heat being applied to the road surface from a torch by a workman. Chinese titles on screen.
Truck driving on open road across barren landscape with snow on the ground.
[Voice of Carlos Maurer]
In one year, we supply enough bitumen to go around the world four and a half times.
[Video Footage]
Truck and cars driving on highway near forest.
Two different shots of Hong Kong-Zhuhai-Macau Bridge spanning water with land in the background and with cars driving across. With Chinese title appearing on screen
[Voice of Carlos Maurer]
And in China we have worked on many iconic engineering projects including the Hong Kong–Zhuhai–Macau bridge as well as the Nansha Bridge in Guangdong province.
[Carlos Maurer]
And our aviation business fuels airlines out of airports located in 60 markets around the world.
But it is not just about products that make our customers equipment perform better.
[Video Footage]
Finger seen touching screen that causes different data effects.
Digital visualisation of bottles on production line
Visual effects showing digital data screens with text display “Shell LubeMaster” with Chinese characters
[Voice of Carlos Maurer]
We also offer digital solutions to help our business customers adapt to the fast rate of change within their industries.
[Video Footage]
Shell employee looking at iPad with visual effects beside.
iPad shows QR code.
Off-shore wind turbine with Shell logo with blades turning and other wind turbines in the distance
[Voice of Carlos Maurer]
Our digital and consultant solutions help customers maximise their operational output and minimise their environmental impact. We help our customers make sustainable decisions that contribute to their profit margins.
[Text]
Disclaimer language appears with title “Warning: uncertainties ahead”
[Voice of Carlos Maurer]
Before we begin, a word from our legal team. Today I am going to gaze into my crystal ball and talk about the future. With that comes a lot of uncertainties. And I am obliged to share the following disclaimer notes with you. Please visit shell.com for more information.
[Carlos Maurer]
So why is someone from an energy company keen to speak to you today about digitalisation?
[Text]
Slide appears showing yellow hexagon in the centre with text “A net-zero emissions energy business by 2020 or sooner”. Top left is hexagon with image of offshore wind turbine with supporting text box “Net Carbon Footprint ambition 1.5° C”. Top right is hexagon with image of offshore rig with text box “net-zero emissions from own operations”. Bottom centre is hexagon showing two hands shaking with text box “Partnering for decarbonisation of energy use”
[Voice of Carlos Maurer]
It comes down to Shell’s ambition to become a net-zero emissions energy business by 2050 or sooner.
An ambition that we will achieve by working in step with society and our customers.
We cannot do it alone. We will partner with businesses, sectors and countries to help them find their own paths to net-zero emissions.
[Carlos Maurer]
Like you, we in Shell were pleased when China announced its commitment to achieve carbon neutrality before 2060.
[Video Footage]
Solar panels and wind turbines in Chinese countryside.
[Voice of Carlos Maurer]
One of the most impressive things about China is your commitment to results by developing tangible plans and putting resources behind them.
[Carlos Maurer]
When you decide on a course of action, you deliver. You keep your word. You do what you say you will do.
[Video Footage]
Time lapse of cars driving at night in Shanghai at major intersection of multiple overlapping highways.
[Voice of Carlos Maurer]
And because we have a common commitment, we want to work together with China to make your ambition a reality.
[Carlos Maurer]
No single company can develop all the solutions and technologies that are needed. We have to collaborate. Genuine collaboration from start to finish. And given the complexity of the energy challenge we face, multi-party collaboration will also be necessary. Multi-party collaboration involves different players from within a sector coming together.
For example, Shell Aviation is working with
[Video Footage]
Bottom of airplane in hanger showing Amazon logo.
Side of the airplane showing “Amazon One operated by Atlas Air Inc.”.
Side of the airplane showing Prime Air branding on body of aircraft.
[Voice of Carlos Maurer]
World Energy to supply Amazon Air with blended sustainable aviation fuel. This blended fuel has the power to reduce carbon emissions by up to 20 percent.
[Carlos Maurer]
It is a great example of collaboration across the value chain – a fuel producer, a fuel supplier and a cargo airline.
Another example of cross sector collaboration comes from California.
[Video Footage]
Cargo containers in a busy port speeded up and showing vehicles moving around the container terminal.
[Voice of Carlos Maurer]
The road that connects the large port of Los Angeles with a major warehouse complex is heavily polluted.
[Video Footage]
Different video shots of blue Hydrogen truck driving with “H2Only” branding and Shell logo. Along the side of the truck is written “Creating a zero-emissions world – H2eavy-duty progress powered by Toyota hydrogen fuel cell technology” below is a list of more than ten logos of the partners in the consortium
[Voice of Carlos Maurer]
Shell is working in a hydrogen truck consortium with Toyota and Kenworth Truck Company to reduce emissions along this busy road.
[Video Footage]
Different views of two parked hydrogen trucks with port of Los Angeles in the background with a Keniworth Toyota Zero Emissions tractor pulling cars loaded onto trailer.
[Voice of Carlos Maurer]
So we are building large-capacity refuelling stations for these hydrogen trucks.
This pilot project is a great way to learn lessons on how to deliver larger scale hydrogen infrastructure for heavy duty trucks.
[Carlos Maurer]
But it is not just collaboration that is vital to build a lower carbon future.
Digitalisation and technology are also key. They will accelerate the energy transformation we need.
Today I will share my views on how Shell can work with you – the people who are leading China’s digital transformation – to help deliver this energy transition.
And to do it in a way that delivers value to our respective businesses.
[Video Footage]
Buildings in Shanghai and river with visual effects and text display “China’s digital transformation.
Man with hard hat in factory looking up with visual effects of digitalisation behind him.
[Voice of Carlos Maurer]
China’s digital transformation and leadership position are exceptional.
[Carlos Maurer]
And I would like to share my observations of what I see as the four factors that stand out –
[Text]
Text display builds on screen – “Innovation, Scale, Speed, Commitment”
[Carlos Maurer]
Innovation, scale, speed and commitment.
Number one, Innovation.
[Text Display]
Innovation
[Carlos Maurer]
Chinese companies openly embrace the spirit of innovation. And in turn, Chinese customers – both consumers and businesses – are open to new ways of doing things, new ideas and just as importantly new business models.
[Text Display]
Scale of Market
[Carlos Maurer]
Number two, the scale of the Chinese digital market is remarkable. That scale ensures real business impact and success, not just in China but globally.
[Text Display]
Speed of Delivery
[Carlos Maurer]
Number three, the speed of delivery which is critical for customer satisfaction and business prosperity.
[Text Display]
Commitment to Deliver
[Carlos Maurer]
And number four, the unwavering commitment to deliver. You see this commitment in China’s adoption of digital platforms. But you also see it in other vital transformations - like the successful adoption of electric vehicles. And these produce tangible, win-win results.
For decades Shell has transformed the energy industry with digitalisation.
[Video Footage]
Male and female looking at pipeline diagrams on computers.
[Voice of Carlos Maurer]
For example, as far back as the 1970s we developed new seismic software to help improve our exploration business.
[Carlos Maurer]
Our digital transformation is firmly under way.
Within our businesses we use digital solutions and data analysis to add real value for us and our customers. We also create new digital products and services that give our customers great energy efficiency and convenience. And, finally, we are creating new business models. Investing in a pipeline of digital ventures - managed as stand-alone businesses.
So they have all the benefits of a start-up culture but the support of a successful corporate “parent”.
So why do we think that Shell can be a strong digital partner for Chinese companies?
Let me give you three reasons:
[Text]
Text display builds on screen – “Action, Insights, Scale”
[Carlos Maurer]
Action, Insights and Scale.
[Text]
Action
[Carlos Maurer]
First, we are focused on action and speed.
We have a track record of digital delivery in China and elsewhere. Sometimes developed by Shell. Sometimes developed by other partners.
First let me give you a home-grown example.
{Video]
MachineMax logo appears in the background you can see the outline of mining equipment in the dark. MachineMax sensors are placed on different pieces of equipment with call out text boxes indicating what is taking place. View of a smartphone showing photo of large piece of equipment on wheels and then swipes through various displays of how data is shown on the smartphone display showing performance of different pieces of equipment being monitored by the sensors.
[Voice of Carlos Maurer]
MachineMax. The idea for MachineMax was born in Shell. MachineMax uses smart sensors and real-time analytics to help construction and mining companies maximise the efficiency of their machinery.
During the incubation period we validated MachineMax’s business proposition. Then we spun the company out so it was independent.
[Carlos Maurer]
This allowed it to successfully attract further venture funding, including from BCG Ventures.
And then we worked together with MachineMax to launch globally and accelerate the growth of its customer base by introducing it to Shell’s long established customers around the world.
Turning next to an example of our partnership approach.
[Video Footage]
Car maintenance taking place in side an engine with tools being passed.
Shell CarCare VIP card with visual effects and Chinese characters and car repair workshop in the background.
iPad with visual effects.
Two men in garage looking at iPad and talking.
Group of Shell Helix staff clapping their hands with manager talking at them in front of Shell Helix workshop in China.
[Voice of Carlos Maurer]
We have worked with Tencent here in China to build Smart Garage, a digital platform that connects motorists with different maintenance needs with a network of 3,000 garages. Convenience for the motorists. New revenue streams for the garages.
[Carlos Maurer]
And we deliver with the same passion for speed, built on a culture of agility.
I am proud of how our Chinese Lubricants team reacted when confronted with the challenges of Covid-19. Prior to the onset of Covid-19, we had established agile teams to solve customer problems and respond to market trends.
This allowed us to respond quickly to the two major shifts in customer behaviour we saw as a result of the virus – the demand for premium products and the growing reliance on digital channels.
[Video Footage]
Montage of video live-streaming centre with professional broadcast equipment. Various Shell staff experts hosting different live-streaming webinars showing and talking about different Shell products for motorists such as engine oil and vehicle cleaning products.
[Dialogue: Male]
We quickly converted a meeting room to a video live-streaming centre with professional broadcast equipment.
We chose the right people from our team to be our subject matter experts on a range of business topics.
In fact, within weeks, some of our staff experts became livestreaming stars! Their webinars connected with more than 150 thousand distributors and independent workshop owners. But the viewership also delivered sales even within the first half hour of streaming.
[Carlos Maurer]
Second, we have valuable customer insights.
[Text Display]
Insights
[Carlos Maurer]
Insights that come from the analysis of our extensive data from thousands of customers, as well as our frequent customer interactions.
[Video Footage]
Binary code.
[Voice of Carlos Maurer]
This access to Big Data has benefited us enormously on our digitalisation journey.
[Video Footage]
Group of people in meeting looking at a screen with digital display.
Female hand scrolling through iPad.
Female using a device and male looking at phone.
Male hands using device.
Two males walking beside a huge vehicle holding handheld devices.
[Voice of Carlos Maurer]
We can identify change more rapidly. And then adapt to meet the changing needs of customers and markets.
[Carlos Maurer]
For example, the Marketing Intelligence Tool we have developed allows us to analyse the data from our various marketing campaigns and improve their efficiency so we are serving the right advertisement to the right person at the right time.
We have improved the impact of the media we select by between 20 to 35 percent because of these insights. And even during a year impacted by Covid-19, we have been able to use this tool to refine our promotional activities to improve sales in our key portfolio segments.
[Video Footage]
Shell Male and female staff in protective equipment inside a facility discussing and gesturing.
Time lapse of city buildings at night.
Man pulling LNG refuelling equipment out of vehicle with steam coming out.
Female scientis looking at liquid in test tube.
Group of men standing up and discussing in office with mass of blueprints.
Male scientist conducting experiment in lab.
Man writing formula on whiteboard and then explaining what he wrote to others in room.
Traffic on a highway.
People working at construction site with a lot of equipment.
Solar panels with sun setting.
Montage of Shell retail site in China including shop and customers.
[Voice of Carlos Maurer]
And finally, we bring our global scale and strong brand
150 markets.
1 million business customers.
Expertise across multiple sectors – from transport and construction to power and manufacturing.
And 30 million customers a day in retail stations around the world - that’s more daily customers than McDonald’s and Starbucks combined.
[Carlos Maurer]
Shell has been around for more than 100 years and is now one of the world’s most recognised brands.
And we have just recently retained our impressive leadership position as the number 1 global supplier for lubricants. We have held this number 1 position for 14 consecutive years, all the way back to 2005.
[Video Footage]
Men working at car assembly plant in China.
[Voice of Carlos Maurer]
And we provide lubricants to 7 of the world’s 10 largest car manufacturers as well as major Chinese brands like Geely and FAW.
[Video Footage]
Pouring Shell Helix Ultra oil from a Chinese bottle into engine.
Chinese male mechanics in Shell branded uniforms talking with car jacked up in the air inside automotive repair workshop
Phone showing video of oil interacting with different parts of car enging.
Gloved hand puts tools back into box.
Chinese male mechanic looking at underside of car while it is being raised up.
Another Chinese male mechanic looking at car engine with torch .
Man looking at wheel and side of car.
[Voice of Carlos Maurer]
Our brand has also helped us build our strong presence in China’s lucrative automotive aftermarket. A market which has been valued at 1.6 trillion RMB. Our network of 200 thousand independent maintenance workshops accounts for nearly 50% of the small business market.
[Carlos Maurer]
I think it also helps to know what we are looking for in a digital partner.
[Text Display]
New Technologies - New Business Models
[Carlos Maurer]
We are looking for partners with new technologies and new business models. Businesses that will help us deliver innovations that thrill our customers.
We want to work with companies that embrace disruption. We know that we cannot rely on disruptive ideas to come only from within our business. Shell might be more than 100 years old but we have the disruptive spirit of an entrepreneur.
[Text Display]
Collaborators
[Carlos Maurer]
We want to work with the collaborators because we know working together leads to success together.
And finally, we want to work with more start-ups.
[Text Display]
Start-Ups
[Carlos Maurer]
Shell brings great complementary skills to start-ups that together help scale up and deliver a cutting-edge innovation.
[Video Footage]
In bridge of large ship, male crew member picks up walkie talkie and then goes out onto deck
Male crew member watches as another vessel comes alongside his ship.
Hands steering a ship.
People working on a ship.
Man gesturing from one vessel to people on the ship.
Men looking at screen inside engine room and discussing.
Crew member’s hand pointing at a screen.
Man looking out to sea from the deck of ship.
[Voice of Carlos Maurer]
I want to give you an example from the world of shipping. It may surprise you but Shell manages a global shipping fleet. And as a fleet operator we are absolutely committed to crew welfare and safety.
Covid19 has really impacted crews around the world.
[Video Footage]
Hand holding phone with visual effects of phone messages with questions and Shell logo going through a questionnaire with multiple choice answers.
[Voice of Carlos Maurer]
So we are always looking out for start-ups that can improve the crew welfare experience.
During a start-up pitch workshop, we came across one such start-up.
[Video Footage]
Male using computer in office surrounding and visual effects of computer screen showing results of staff feedback over layed on the screen.
[Voice of Carlos Maurer]
We tested the start-up’s technology on six of our ships and could immediately see how the tool helped us gauge crew sentiment in real time and understand how we could intervene to better support them.
[Carlos Maurer]
Now we are working with this start-up to roll out this innovation across our whole fleet as well as build out a route to market to ship operators around the world.
And here in China we have invested in industrial e-commerce site
[Text Display]
Zhenkunhang logo.
[Carlos Maurer]
Zhenkunhang to explore a platform for an aftermarket for industrial equipment maintenance, repair and operations.
[Video Footage]
3D animation of autonomous transportation system in a city.
Plugging in electric car at vehicle charging station.
[Voice of Carlos Maurer]
And we see a lot of opportunities with start-ups in the world of autonomous driving and Electric vehicle charging solutions.
[Carlos Maurer]
I hope that what I have shared today inspires some of you to reach out to Shell to start an exploratory discussion.
The challenge of the energy transition remains a top priority for Shell just as it is for China.
We believe Shell can be an important part of the solution. And we believe that digital solutions will help accelerate its progress.
We cannot do it alone. Collaboration is critical.
[Text Display]
A strong fire only builds when everyone gathers firewood together (also in Chinese characters)
I am inspired by the Chinese proverb : “A strong fire only builds when everyone gathers firewood together”.
[Carlos Maurer]
I am convinced that together we can build a lower carbon future.
Thank you.
[Shell Pecten]
[Sound of Shell plays]
Distinguished guests, ladies and gentlemen. It is a great honour for me to speak to such an influential group of digital leaders. My name is Carlos Maurer. I lead Global Commercial – Shell’s business-to-business marketing organisation of 8,000 people. We serve more than 1 million business customers in 150 markets around the world.
We develop and sell lubricants and greases that help our customers’ engines and machinery work as efficiently as possible.
In one year, we supply enough bitumen to go around the world four and a half times. And in China we have worked on many iconic engineering projects including the Hong Kong–Zhuhai–Macau bridge as well as the Nansha Bridge in Guangdong province.
And our aviation business fuels airlines out of airports located in 60 markets around the world.
But it is not just about products that make our customers equipment perform better.
We also offer digital solutions to help our business customers adapt to the fast rate of change within their industries.
Our digital and consultant solutions help customers maximise their operational output and minimise their environmental impact. We help our customers make sustainable decisions that contribute to their profit margins.
Uncertainties ahead
Before we begin, a word from our legal team. Today I am going to gaze into my crystal ball and talk about the future. With that comes a lot of uncertainties. And I am obliged to share the following disclaimer notes with you. Please visit shell.com for more information.
Shell is committed to help China achieve its sustainability goals
So why is someone from an energy company keen to speak to you today about digitalisation?
It comes down to Shell’s ambition to become a net-zero emissions energy business by 2050 or sooner.
An ambition that we will achieve by working in step with society and our customers.
We cannot do it alone. We will partner with businesses, sectors and countries to help them find their own paths to net-zero emissions.
Like you, we in Shell were pleased when China announced its commitment to achieve carbon neutrality before 2060. One of the most impressive things about China is your commitment to results by developing tangible plans and putting resources behind them. When you decide on a course of action, you deliver. You keep your word. You do what you say you will do.
And because we have a common commitment, we want to work together with China to make your ambition a reality.
No single company can develop all the solutions and technologies that are needed. We have to collaborate. Genuine collaboration from start to finish. And given the complexity of the energy challenge we face, multi-party collaboration will also be necessary. Multi-party collaboration involves different players from within a sector coming together.
For example, Shell Aviation is working with World Energy to supply Amazon Air with blended sustainable aviation fuel. This blended fuel has the power to reduce carbon emissions by up to 20 percent. It is a great example of collaboration across the value chain – a fuel producer, a fuel supplier and a cargo airline.
Another example of cross sector collaboration comes from California.
The road that connects the large port of Los Angeles with a major warehouse complex is heavily polluted. Shell is working in a hydrogen truck consortium with Toyota and Kenworth Truck Company to reduce emissions along this busy road.
So we are building large-capacity refuelling stations for these hydrogen trucks. This pilot project is a great way to learn lessons on how to deliver larger scale hydrogen infrastructure for heavy duty trucks.
But it is not just collaboration that is vital to build a lower carbon future.
Digitalisation and technology are also key. They will accelerate the energy transformation we need.
Today I will share my views on how Shell can work with you – the people who are leading China’s digital transformation – to help deliver this energy transition.
And to do it in a way that delivers value to our respective businesses.
China’s digital transformation
China’s digital transformation and leadership position are exceptional. And I would like to share my observations of what I see as the four factors that stand out – Innovation, scale, speed and commitment.
- Innovation. Chinese companies openly embrace the spirit of innovation. And in turn, Chinese customers – both consumers and businesses – are open to new ways of doing things, new ideas and just as importantly new business models.
- The scale of the Chinese digital market is remarkable. That scale ensures real business impact and success, not just in China but globally.
- The speed of delivery – critical for customer satisfaction and business prosperity
- The unwavering commitment to deliver. You see this commitment in China’s adoption of digital platforms. But you also see it in other vital transformations - like the successful adoption of electric vehicles. And these produce tangible, win-win results.
Digitalisation can help deliver the energy transition
For decades Shell has transformed the energy industry with digitalisation.
For example, as far back as the 1970s we developed new seismic software to help improve our exploration business.
Our digital transformation is firmly under way.
Within our businesses we use digital solutions and data analysis to add real value for us and our customers. We also create new digital products and services that give our customers great energy efficiency and convenience. And, finally, we are creating new business models. Investing in a pipeline of digital ventures - managed as stand-alone businesses.
So they have all the benefits of a start-up culture but the support of a successful corporate “parent”.
Why Chinese companies should work with Shell
So why do we think that Shell can be a strong digital partner for Chinese companies?
Let me give you three reasons:
- First, we are focused on action and speed.
We have a track record of digital delivery in China and elsewhere. Sometimes developed by Shell. Sometimes developed by other partners.
First let me give you a home-grown example. MachineMax.
The idea for MachineMax was born in Shell. MachineMax uses smart sensors and real-time analytics to help construction and mining companies maximise the efficiency of their machinery. During the incubation period we validated MachineMax’s business proposition. Then we spun the company out so it was independent. This allowed it to successfully attract further venture funding, including from BCG Ventures.
And then we worked together with MachineMax to launch globally and accelerate the growth of its customer base by introducing it to Shell’s long established customers around the world.
Turning next to an example of our partnership approach.
We have worked with Tencent here in China to build Smart Garage, a digital platform that connects motorists with different maintenance needs with a network of 3,000 garages. Convenience for the motorists. New revenue streams for the garages.
And we deliver with the same passion for speed, built on a culture of agility.
I am proud of how our Chinese Lubricants team reacted when confronted with the challenges of Covid-19. Prior to the onset of Covid-19, we had established agile teams to solve customer problems and respond to market trends.
This allowed us to respond quickly to the two major shifts in customer behaviour we saw as a result of the virus – the demand for premium products and the growing reliance on digital channels.
We quickly converted a meeting room to a video live-streaming centre with professional broadcast equipment.
We chose the right people from our team to be our subject matter experts on a range of business topics.
In fact, within weeks, some of our staff experts became livestreaming stars! Their webinars connected with more than 150 thousand distributors and independent workshop owners. But the viewership also delivered sales even within the first half hour of streaming.
- Second, we have valuable customer insights.
Insights that come from the analysis of our extensive data from thousands of customers, as well as our frequent customer interactions.
This access to Big Data has benefited us enormously on our digitalisation journey. We can identify change more rapidly. And then adapt to meet the changing needs of customers and markets.
For example, the Marketing Intelligence Tool we have developed allows us to analyse the data from our various marketing campaigns and improve their efficiency so we are serving the right advertisement to the right person at the right time.
We have improved the impact of the media we select by between 20 to 35 percent because of these insights. And even during a year impacted by Covid-19, we have been able to use this tool to refine our promotional activities to improve sales in our key portfolio segments.
- And finally, we bring our global scale and strong brand
150 markets. 1 million business customers. Expertise across multiple sectors – from transport and construction to power and manufacturing. And 30 million customers a day in retail stations around the world - that’s more daily customers than McDonald’s and Starbucks combined.
Shell has been around for more than 100 years and is now one of the world’s most recognised brands.
And we have just recently retained our impressive leadership position as the number 1 global supplier for lubricants. We have held this number 1 position for 14 consecutive years, all the way back to 2005.
And we provide lubricants to 7 of the world’s 10 largest car manufacturers as well as major Chinese brands like Geely and FAW.
Our brand has also helped us build our strong presence in China’s lucrative automotive aftermarket. A market which has been valued at 1.6 trillion RMB. Our network of 200 thousand independent maintenance workshops accounts for nearly 50% of the small business market.
What is Shell looking for in a digital partner?
I think it also helps to know what we are looking for in a digital partner.
We are looking for partners with new technologies and new business models. Businesses that will help us deliver innovations that thrill our customers.
We want to work with companies that embrace disruption. We know that we cannot rely on disruptive ideas to come only from within our business. Shell might be more than 100 years old but we have the disruptive spirit of an entrepreneur.
We want to work with the collaborators because we know working together leads to success together.
And finally, we want to work with more start-ups.
Shell brings great complementary skills to start-ups that together help scale up and deliver a cutting-edge innovation.
I want to give you an example from the world of shipping. It may surprise you but Shell manages a global shipping fleet. And as a fleet operator we are absolutely committed to crew welfare and safety.
Covid19 has really impacted crews around the world.
So we are always looking out for start-ups that can improve the crew welfare experience.
During a start-up pitch workshop, we came across one such start-up.
We tested the start-up’s technology on six of our ships and could immediately see how the tool helped us gauge crew sentiment in real time and understand how we could intervene to better support them.
Now we are working with this start-up to roll out this innovation across our whole fleet as well as build out a route to market to ship operators around the world.
And here in China we have invested in industrial e-commerce site Zhenkunhang to explore a platform for an aftermarket for industrial equipment maintenance, repair and operations.
And we see a lot of opportunities with start-ups in the world of autonomous driving and Electric vehicle charging solutions.
Conclusion
I hope that what I have shared today inspires some of you to reach out to Shell to start an exploratory discussion.
The challenge of the energy transition remains a top priority for Shell just as it is for China.
We believe Shell can be an important part of the solution. And we believe that digital solutions will help accelerate its progress.
We cannot do it alone. Collaboration is critical.
I am inspired by the Chinese proverb : “A strong fire only builds when everyone gathers firewood together”.
I am convinced that together we can build a lower carbon future.
Thank you.
Disclaimer
This presentation contains data and analysis from Shell’s Sky scenario. Unlike Shell’s previously published Mountains and Oceans exploratory scenarios, the Sky scenario is based on the assumption that society reaches the Paris Agreement’s goal of holding the rise in global average temperatures this century to well below two degrees Celsius (2°C) above pre-industrial levels. Unlike Shell’s Mountains and Oceans scenarios, which unfolded in an open-ended way based upon plausible assumptions and quantifications, the Sky scenario was specifically designed to reach the Paris Agreement’s goal in a technically possible manner. These scenarios are a part of an ongoing process used in Shell for over 40 years to challenge executives’ perspectives on the future business environment. They are designed to stretch management to consider even events that may only be remotely possible. Scenarios, therefore, are not intended to be predictions of likely future events or outcomes.
Additionally, it is important to note that as of 6 November 2020, Shell’s operating plans and budgets do not reflect Shell’s net-zero emissions ambition. Shell’s aim is that, in the future, its operating plans and budgets will change to reflect this movement towards its new net-zero emissions ambition. However, these plans and budgets need to be in step with the movement towards a net-zero emissions economy within society and among Shell’s customers.
Also, in this presentation we may refer to “Shell’s Net Carbon Footprint”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions but, to support society in achieving the Paris Agreement goals, we aim to help and influence such suppliers and consumers to likewise lower their emissions. The use of the terminology “Shell’s Net Carbon Footprint” is for convenience only and not intended to suggest these emissions are those of Shell or its subsidiaries.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.
This presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”, “ambition’, ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s Form 20-F for the year ended December 31, 2019 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward-looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 18 December 2020. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation.
We may have used certain terms, such as resources, in this presentation that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.