We are working with and learning from our joint ventures (JVs), contractors and suppliers, to continue to improve environmental and social performance in these difficult times.
WORKING THROUGH JOINT VENTURES
We conduct a big part of our business through JVs. This spreads risks and allows us to take a stake in more projects.
JVs we control are required to apply the Shell Control Framework or materially equivalent principles and standards. The Control Framework includes our Business Principles, Code of Conduct and company-wide standards, including our HSSE standards.
In JVs we do not control, we do not have the power to set the standards. So instead, we encourage the JV to operate in line with our values. We expect the JV to apply business principles and an HSSE commitment and policy materially equivalent to our own. We also share our experience in managing safety, environmental and social issues. This includes how we carry out integrated environmental and social impact assessments before beginning significant work on a project, and our approach to building transparent working relationships with external stakeholders.
If a JV cannot work in line with our values, principles and standards in this area within a reasonable time, we review the relationship. We last left a JV because of its incompatibility with our Business Principles in 2003.
WORKING WITH OUR CONTRACTORS AND SUPPLIERS
We have approximately 102,000 staff, but more than four times as many people work for us as contractors or suppliers. This presents an enormous opportunity to create jobs and support development by hiring local companies (see Our neighbours). It also poses a serious challenge: to ensure that more than 400,000 people in more than 100 countries who are not Shell staff work by our standards.
In 2008, we expanded the requirements that must be included in new contracts with contractors and suppliers to include following our Code of Conduct. Requirements to follow the Business Principles and our HSSE standards in the work they do for us were already in place. In many locations, we provide training to help contractors and suppliers build the systems and skills they need to comply with these principles. For example, we have a dedicated team to review and mentor contractors and suppliers in China. The team screens suppliers and contractors and helps them understand and follow our HSSE standards.
In 2008, our annual internal questionnaire of senior Shell country representatives identified that we cancelled 49 contracts due to failures to adhere to our Business Principles. Forty-five of the cases involved violations of our HSSE standards. Multiple contracts were cancelled in Guatemala and Pakistan.
