The USA introduced further restrictions regarding Russia in 2017, expanding them in 2018. See “Our people” on pages 108, “Other Regulatory and Statutory Information” on page 182 and Note 25 to the “Consolidated Financial Statements” on pages 260. Where appropriate, netting arrangements, credit insurance, prepayments and collateral are used to manage credit risk. The following statement is extracted in full and is unedited text from page 189 of the 2020 Annual Report and Accounts. Higher prices could also reduce demand for our products, which could result in lower profitability, particularly in our Oil Products and Chemicals business. These references are for convenience only. The gas field is in the process of being closed down due to earthquakes induced by gas production. Pilipinas Shell Annual and Sustainability Report 2019; View Pilipinas Shell Annual and Sustainability Report 2019; Bitumen FreshAir Debuts in Bohol; First Integrated Hydrogen Manufacturing Facility in the Philippines; Be Well: Promoting a Speak-up Culture; Bida sa Kalsada: Shell Rimula Tsuperstar; Your Neighborhood Next-Gen Retail Station Annual reports and publications Consult our most recent Annual Report, our Form 20-F, and our Investors' Handbook to get the latest results on both our operational and fiscal performance. Shell Pakistan Limited Annual Report ‘15 FUELLING JOURNEYS, DRIVING CONNECTIONS Shell Pakistan Limited Shell House 6, Ch. Also, the prevalence of remote working introduces additional risk because it expands the IT threat landscape. It consists of the businesses of Upstream, Integrated Gas, Downstream, and Projects & Technology. Potential risks include: acts of terrorism; acts of criminality including maritime piracy; cyber-espionage or disruptive cyber-attacks; conflicts including war, civil unrest and environmental and climate activism (including disruptions by non-governmental and political organisations). Other than in exceptional cases, the use of external derivative instruments is confined to specialist trading and central treasury organisations that have the appropriate skills, experience, supervision, control and reporting systems. When we participate in joint ventures in Nigeria, we require that they operate to internationally accepted business standards. This could result in a material adverse effect on our earnings, cash flows and financial condition. Staff receive clear guidance that includes requirements in Shell’s Ethics and Compliance Manual, an antitrust-specific website, training modules where completion is monitored and regular messages from Shell leaders on the importance of managing antitrust risks. Changes in assumptions for mortality, retirement age or pensionable remuneration at retirement could also cause significant changes to the funding level of future liabilities. When external companies provide us with IT services, the security of those services is managed through contractual clauses and supplier assurance reports. Annual Reports and publications. We could also be subject to litigation from persons or entities allegedly affected by data protection violations. The 2019 Annual Report and Form 20-F, the 2019 Sustainability Report and the 2019 Investors' Handbook are available on our report website. We have a climate change risk management structure which is supported by standards, policies and controls, as part of our health, safety, security and environment and social performance (HSSE & SP) control framework. We continually develop and defend our brand in line with Shell’s purpose and promises, and target our investments to drive brand differentiation, relevance and preference. We continually assess and monitor the external environment for potential risks to our reputation. Our pension plans invest in government bonds, and could therefore be affected by a sovereign debt downgrade or other default. Learn more about careers at Shell. Page numbers and section cross-references in the Appendix below refer to pages and sections in the 2020 Annual Report and Accounts. 11.03.2021 - 11-Mar-2021 Royal Dutch Shell plc published its Annual Report and Accounts for the year ended December 31, 2020. In 2020, many governments ran deficits to deal with the economic impacts of the COVID-19 pandemic. Many other nations are also adopting trade-control programmes similar to those administered by the EU and the USA. Q4. Antitrust and competition laws apply to Shell and its joint arrangements and associates in the vast majority of countries where we do business. For example, our partners or members of a joint arrangement or an associate, (particularly local partners in developing countries), may be unable to meet their financial or other obligations to projects, threatening the viability of a given project. This could harm our reputation and have a material adverse effect on our earnings, cash flows and financial condition. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. During 2020, information and cyber-security risks developed and changed rapidly. The Annual Report and Accounts will be submitted to the Annual General Meeting to be held on May 18, 2021. Quarterly results - 2020. We use our subsurface, project and technical expertise, and actively manage non-technical risks across a diversified portfolio of opportunities and projects. Page numbers and section cross-references in the Appendix below refer to pages and sections in the 2020 Annual Report and Accounts. Our subsidiaries, joint arrangements and associates are subject to differing economic and financial market conditions around the world. In effecting commodity trades and derivative contracts, the company operates within procedures and policies designed to ensure that risks are managed within authorised limits. Real or perceived failures of governance or regulatory compliance or a perceived lack of understanding of how our operations affect surrounding communities could harm our reputation. We have experienced breaches and disruptions to our critical IT services in the past. 2020 Annual Report. We maintain a diversified portfolio to mitigate the impact of price volatility. The Scotford Upgrader is owned by the Athabasca Oil Sands Project, a joint venture operated by Shell and owned by Shell, Chevron Canada Corporation, and Marathon Oil Sands LP. This involves adopting an integrated approach for all stages, from basin choice to development. Our challenge is to ensure that all employees and contract staff comply with the Principles and the Code of Conduct. The Directors are responsible for preparing the Annual Report, including the financial statements, in accordance with applicable laws and regulations. Technology and innovation are essential to our efforts to meet the world’s energy demands competitively. The Annual Report and Form 20-F, Sustainability report and the Investors’ Handbook are available on our report website. See “Other Regulatory and Statutory Information” on page 182. Oil and gas production available for sale. We also aim to maintain a strong balance sheet to provide resilience against weak market prices. We may be unable to divest these assets successfully in line with our strategy. 2009 Quarter 1 Report. Most of the countries we operate in have data protection laws and regulations. Low oil and gas prices could also affect our ability to maintain our long-term capital investment programme and dividend payments. Royal Dutch Shell plc filed its Annual Report on Form 20-F for the year ended December 31, 2014 with the U.S. Securities and Exchange Commission. Royal Dutch Shell, also known simply as Shell, reported a total revenue of 180.54 billion U.S. dollars in 2020. Our Articles of Association also provide that, if this provision is to be determined invalid or unenforceable for any reason, the dispute could only be brought before the courts of England and Wales. We have established several dedicated climate change and GHG-related forums at different levels of the organisation. Print Top. Visit website. Therefore, if HSSE risks materialise, they could have a material adverse effect on our earnings, cash flows and financial condition. TIDMRDSA TIDMRDSB 11-Mar-2021 Royal Dutch Shell plc published its Annual Report and Accounts for the year ended December 31, 2020. In some cases, we have also retained certain liabilities following a divestment. Shell is a global group of energy and petrochemicals companies. The health, safety, security and environment (HSSE) risks to which we and the communities in which we work are potentially exposed cover a wide spectrum, given the geographic range, operational diversity and technical complexity of our operations. This could reduce our degree of control and our ability to identify and manage risks. 2019 Annual Report 4641 Page 1 of 21 Shell Cove Public School 4641 (2019) Printed on: 30 March, 2020. The extracts from the 2020 Annual Report and Accounts included in this announcement may contain forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell plc. In addition, a condensed set of the Royal Dutch Shell plc interim financial statements was included in the 2nd quarter 2020 and half year unaudited results announcement released on Jul 30, 2020. Reporting We have voluntarily reported – openly and honestly - on our environmental and social performance since 1997. We prepare annual strategic and financial plans that test different scenarios and their impact on prices on our businesses and company as a whole. For example, the EU and the USA continue to impose restrictions and prohibitions on certain transactions involving countries such as Syria, Venezuela, Russia and Cuba. We maintain committed credit facilities. Many other factors, including the materialisation of the risks discussed in several of the other risk factors, could negatively affect our reputation and could have a material adverse effect on our earnings, cash flows and financial condition. We have substantial pension commitments, the funding of which is subject to capital market risks and other factors. 11-Mar-2021 Royal Dutch Shell plc published its Annual Report and Accounts for the year ended December 31, 2020. Currently, oil prices continue to steadily inch upward to their highest in twelve months, reflecting the optimistic tone of several reports. We are exposed to treasury and trading risks, including liquidity risk, interest rate risk, foreign exchange risk and credit risk. In compliance with 9.6.1 of the Listing Rules, on March 11, 2021, a copy of the 2020 Annual Report and Accounts was submitted to the National Storage Mechanism. We are exposed to credit risk; our counterparties could fail or be unable to meet their payment and/or performance obligations under contractual arrangements. Identification and assessment capabilities are built into our IT support processes and adhere to industry best practices. See “Environment and society” on pages 85. If we are slower than society, customers may prefer a different supplier which would adversely impact our reputation and demand for our products. Macroeconomic, geopolitical and technological uncertainties can also affect production costs and demand for our products. We use derivative instruments such as futures and contracts for differences to hedge market risks. Volatility in capital markets or government policies could affect investment performance and interest rates, causing significant changes to the funding level of future liabilities. Our standards and governance structure are defined in our Health, Safety, Security, Environment and Social Performance (HSSE & SP) control framework and supporting guidance documents. The following is extracted in full and unedited text from the 2020 Annual Report and Accounts: The risks discussed below could have a material adverse effect separately, or in combination, on our earnings, cash flows and financial condition. Accordingly, failure to manage our costs and our operational performance could result in a material adverse effect on our earnings, cash flows and financial condition. Shell invests constantly in efforts to embed and improve our controls and monitoring. A multidisciplinary committee reviews and endorses all major proved reserves bookings. A printed copy of our Annual Report can be ordered free of charge. Royal Dutch Shell plc published its Annual Report and Accounts for the year ended December 31, 2020. We have credit risk policies in place which seek to ensure that products are sold to customers with appropriate creditworthiness. The associated costs of new technology are sometimes underestimated. Shell … How are we transforming our business? The COVID-19 pandemic has increased trade compliance risks, due to factors such as growing state involvement in business dealings, the need to maintain and develop business opportunities and cross-border movement of goods and technologies, and the increasing likelihood that counterparties will change ownership as the economic crisis continues. Facebook link opens in a new window Twitter link opens in a new window Linkedin link opens in a new window 1 Email link opens in a new window copy to clipboard. Shell publishes Annual Report and Accounts. These ranges help us to evaluate the robustness of our capital allocation for our evaluation of projects and commercial opportunities. Violation of antitrust laws is a criminal offence in many countries, and individuals can be imprisoned or fined. Non-compliance with data protection laws could expose us to regulatory investigations, which could result in fines, penalties and harm to our reputation. Financial Calendar; SEC Filings; Contact Us. Our Legal and Tax functions are organised globally and support our business lines in ensuring compliance with local laws and fiscal regulations. Production from the Groningen field in the Netherlands causes earthquakes that affect local communities. -1 Directors’ Remuneration Report Shell Annual Report 2018 The Directors’ Remuneration Report for the year ended December 31, 2018 sets out the work of the Remuneration Committee (REMCO) in 2018 and how the policy that was approved by shareholders at the 2017 Annual … It also features a 2017 report comparison tool, download centre, chart generator and … We are exposed to changes in currency values and to exchange controls as a result of our substantial international operations. The Company’s Articles of Association determine the jurisdiction for shareholder disputes. Investors should also consider the following, which could limit shareholder remedies. In compliance with 9.6.1 of the Listing Rules, on March … Therefore, we may incur significant losses from different types of risks that are not covered by insurance from third-party insurers, potentially resulting in a material adverse effect on our earnings, cash flows and financial condition. Feb 4, 2021 . The 2014 Annual Report and Form 20-F can be downloaded from www.shell.com/annualreport or www.sec.gov. The prices of crude oil, natural gas, oil products and chemicals are affected by supply and demand, both globally and regionally. 11-Mar-2021 Royal Dutch Shell plc published its Annual Report and Accounts for the year ended December 31, 2020. Government actions may also affect the prices of crude oil, natural gas, oil products and chemicals. Accordingly, when bidding on new leases or projects, we could find ourselves at a competitive disadvantage because these state-owned entities may not require a competitive return. This would result in increased pressure on our cash position and potential impairments. Shell publishes Annual Report and Accounts . We may be unable to divest assets at acceptable prices or within the timeline envisaged because of market conditions or credit risk. We have voluntarily reported – openly and … We expect that a growing share of our GHG emissions will be subject to regulation, resulting in increased compliance costs and operational restrictions. These rules are part of a group wide global programme to ensure consistent levels of data protection across the group. We have assessed the impact of COVID-19 on activities and we are implementing measures to minimise the adverse effect of the pandemic on our operations. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans, outlooks, budgets and pricing assumptions to reflect this movement. We are exposed to commodity trading risks, including market and operational risks. Prolonged periods of low oil and gas prices, or rising costs, have resulted and could continue to result in projects being delayed or cancelled. Appointment of new Chair and other Board and Committee changes. We test the economic and operational resilience of our Nigerian projects against a wide range of assumptions and scenarios. This means subsequent downward adjustments are possible. This information, together with the information set out in the Appendix below, which is extracted from the 2020 Annual Report and Accounts constitutes the material required for the purposes of compliance with DTR 6.3.5R. Prolonged periods of low oil and gas prices could adversely affect the financial, fiscal, legal, political and social stability of countries that rely significantly on oil and gas revenue. London, April 15, 2021 ROYAL DUTCH SHELL PLC NOTICE OF 2021 ANNUAL GENERAL MEETING AND SHELL ENERGY TRANSITION STRATEGY Virtual attendance and participation enabled for the Annual General Meeting (“AGM”) Shareholders encouraged to vote in advance of the AGM, but voting is also enabled during the meeting Board requests support for energy sector’s first shareholder [Read more] These processes include counterparty due diligence and are supported by Shell's Ethics and Compliance Office. Also, in this announcement, 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. Any of these, individually or in aggregate, could have a material adverse effect on our earnings, cash flows and financial condition. Shell Upstream concentrate on the efficient development and extraction of crude oil and natural gas offshore. Developments in politics, laws and regulations can and do affect our operations. There are a number of factors that could affect the future operations of Royal Dutch Shell plc and could cause those results to differ materially from those expressed in any forward-looking statements set out in the extracts from the 2020 Annual Report and Accounts included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Royal Dutch Shell plc’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. We monitor these liabilities closely and make appropriate provisions for them. We do not hedge all our activities and where hedging is in place, it may not function as expected. We carefully tailor our sales processes to buyers’ perceived expectations so we can deliver the most competitive outcomes. Our operations are subject to extensive HSSE regulatory requirements that often change and are likely to become more stringent over time. These insights and those from various other external scenarios (such as the IPCC Special Report 1.5 °C) guide us how we set our strategic direction, capital allocation and carbon emission commitments. Some governments require immediate disclosure of information, including sensitive personal data, to identify infected individuals, with some mandating technologies such as tracing applications on all devices, including corporate mobile phones. These forums seek to address, monitor and review climate change issues. Consult our most recent Annual Report, our Form 20-F, and our Investors' Handbook to get the latest results on both our operational and fiscal performance. Shell’s Audit Committee reviews all proved reserves bookings and Shell's Executive Committee is responsible for final approval. Read about Shell’s energy transition strategy as we work to become a net-zero emissions energy business by 2050, in step with society’s progress towards the goal of the UN Paris Agreement on climate change. The standards and governance structure also help us to develop mitigation strategies aimed at ensuring that if an HSSE risk materialises, we avoid catastrophic consequences and have ways of trying to remediate any environmental damage. The TSM Governance Team examines opportunities for improving the mining industry’s performance and reputation with key communities of interest. The 2019 Annual Report and Form 20-F, the 2019 Sustainability Report and the 2019 Investors' Handbook are available on our report website. Our response to the evolving risk landscape requires transparency and clarity around our plans and actions to achieve our climate target. Accordingly, our ability to use financing for these types of future projects may be adversely affected. Royal Dutch Shell plc published its Annual Report and Accounts for the year ended December 31, 2019. Accordingly, the ability of shareholders to obtain monetary or other relief, including in respect of securities law claims, could be determined in accordance with these provisions. Report identifies divestment and climate litigation as material risks to the company’s bottom line . 11-Mar-2021 Royal Dutch Shell plc published its Annual Report and Accounts for the year ended December 31, 2020. A further erosion of the business and operating environment in Nigeria could have a material adverse effect on us. Our future hydrocarbon production depends on the delivery of large and integrated projects, and our ability to replace proved oil and gas reserves. Further background on each risk is set out in the relevant sections of this Report indicated by way of cross references under each risk factor. Political or economic instability affects such markets. Shell and its joint arrangements and associates have in the past settled with the US Securities and Exchange Commission regarding violations of the US Foreign Corrupt Practices Act. In preparing these financial statements, the Directors are required to: The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the transactions of Shell and the Company and disclose with reasonable accuracy, at any time, the financial position of Shell and the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006 (the Act) and, as regards the Consolidated Financial Statements, with Article 4 of the IAS Regulation and therefore are in accordance with IFRS as adopted by the EU. This could have a material adverse effect on our earnings, cash flows and financial condition. Estimates also change to reflect acquisitions, divestments, new discoveries, extensions of existing fields and mines, and improved recovery techniques. We seek to proportionally share risks and funding commitments with joint-venture partners. Show all. Violations of antitrust and competition laws carry fines and expose us and/or our employees to criminal sanctions and civil suits. March 11, 2021 . We use marking to fair value to assess trading exposures where appropriate, with a department that is independent of the traders reviewing the market values applied. Factors that influence supply and demand include operational issues, natural disasters, weather, pandemics such as COVID-19, political instability, conflicts, economic conditions and actions by major oil and gas producing countries. These measures include monitoring the level of infections among staff, ensuring the safety and well-being of all staff, (particularly critical staff who continue to operate our assets), scenario planning, deploying continuity plans and ensuring our sites and offices are “COVID safe". Our insurance subsidiaries are adequately capitalised and they may transfer risks to third-party insurers where economical, effective and relevant. Shell is a global group of energy and petrochemical companies. In addition to imposing fines, regulators may also issue orders to stop processing personal data, which could disrupt operations. Violations of data protection laws carry fines and expose us and/or our employees to criminal sanctions and civil suits. Financial calendar; Financial calendar. In our Nigerian operations, we face various risks and adverse conditions. Where we are the operator of a joint arrangement, the other partner(s) could still be able to veto or block certain decisions, which could be to our overall detriment. Any violation of anti-bribery, tax-evasion or anti-money laundering laws, including those potential violations associated with Shell Nigeria Exploration and Production Company Limited's investment in Nigerian oil block OPL 245 and the 2011 settlement of litigation pertaining to that block, could harm our reputation or have a material adverse effect on our earnings, cash flows and financial condition. As seen in recent years, these risks can manifest themselves in the countries where we operate and elsewhere. With approximately 90,000 employees in more than 70 countries and territories, Shell is helping to meet the world's growing demand for energy in economically, environmentally and socially responsible ways. Tensions between nation states can also affect our business. This could negatively affect our brand, reputation and licence to operate, which could limit our ability to deliver our strategy, reduce consumer demand for our branded and non-branded products, harm our ability to secure new resources and contracts, and restrict our ability to access capital markets or attract staff. Certain governments have also adopted laws and regulations that could potentially conflict with other countries’ laws and regulations, potentially subjecting us to both criminal and civil sanctions. Accordingly, if any of the above circumstances arise, this could have a material adverse effect on our earnings, cash flows and financial condition. The 2019 Annual Report and Form 20-F, the 2019 Sustainability Report and the 2019 Investors' Handbook are available on our report website. A condensed set of the Royal Dutch Shell plc financial statements and information on important events that have occurred during the financial year and their impact on the financial statements were included in the 4th quarter 2020 and full year unaudited results announcement released on February 4, 2021. If any of the above risks materialise, they could have a material adverse effect on our earnings, cash flows and financial condition. Shell Gas CSR Pages. Low oil and gas prices have also resulted and could continue to result in the debooking of proved oil or gas reserves, if they become uneconomic in this type of price environment. Shell must be able to adapt dynamically to such legislative changes and be capable of updating our internal programmes if necessary. We maintain a data privacy programme with adequate resources, a comprehensive governance structure and established reporting lines. Sustainability Reporting Discover our long history of voluntary reporting on the environmental and social impact of our work as part of our commitment to protecting our communities. Printed copies of the 2019 Annual Report and … We maintain an anti-bribery and anti-money-laundering (ABC/AML) programme with adequate resources, a comprehensive governance structure and established reporting lines. Many of our major projects and operations are conducted in joint arrangements or with associates. Find out how to contact our Media Relations team across the world. We may fail to assess or manage these and other risks properly. These factors continue to contribute to potential breaches and disruptions of critical IT services. Liabilities associated with defined benefit pension plans are significant, and the cash funding requirement of such plans can also involve significant liabilities. Shell Gas Accounts Pages 01. Overall, mitigation of the risk is addressed through our strategy to accelerate the transition to net-zero emissions, purposefully and profitably.