Building strong relationships with our contractors and suppliers is essential to delivering new projects and running our operations. We recognise and select them for their commitment and expertise in areas that include innovation, safety, quality and sustainability. This approach, combined with our global purchasing power, helps us to gain competitive advantage.
Shell Contracting & Procurement is responsible for nearly everything that Shell buys across the full scope of activities in the Upstream, Downstream, and Projects & Technology sectors of our business. With Shell active in more than 70 countries, this means our Contracting & Procurement specialists are purchasing from thousands of suppliers worldwide. This currently amounts to about $35 billion in annual spend.
In line with our Shell General Business Principles and Shell Supplier Principles, we seek to work with contractors and suppliers who contribute to sustainable development and are economically, environmentally and socially responsible.
We purchase products and services that support our approach to sustainability. For example, we work with suppliers that can build pipelines using non-metallic materials, where appropriate, instead of carbon steel. Non-metallic pipes have a smaller carbon footprint than carbon steel pipes. Transportation and installation are also easier as non-metallic pipes weigh around a quarter less than the equivalent size steel pipe. Shell Shipping also uses a supplier that provides low-friction paint for ship hulls, which makes the ship more fuel efficient.