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Nigeria: Report on Shell’s environmental & social impacts, based on case studies by NGOs working with Niger Delta communities

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17 February 2010

Oil giant faces fresh criticism over Nigeria

Author: Sarah Arnott, The Independent [UK]

Shell should link relevant executives' pay to progress on environmental issues in the Niger Delta, a highly critical report…recommends…The benefits of the oil industry's operations in the region are outweighed by the environmental and social costs, the Ecumenical Council for Corporate Responsibility (ECCR) says…The ECCR recommends the company address communities' need for clean drinking water, improve community relations, and transform the Nigerian SPDC subsidiary's operating culture…"A number of the recommendations are already part of existing policies or are part of a regular review of our practices in Nigeria," Shell said. "However, SPDC acknowledges that it can always do better and is always willing to work with third parties who can help in this."

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17 February 2010

Shell freezes exec salaries and includes sustainability performance after shareholder pressure

Author: Daniel Brooksbank, Responsible Investor

Institutional shareholders have welcomed an announcement by Shell…that it plans to limit top executives’ pay and include sustainable development as a significant part of performance bonuses…Erik Breen, head of responsible investment at Robeco Investment Management… pointed to the company’s decision to increase the role of sustainability in executive performance evaluation as a positive response to shareholder lobbying… Last month a group of UK institutional shareholders including the Co-operative Asset Management and the Unison Staff Pension Scheme, filed a shareholder resolution…calling on the company to report on the investment risks associated with controversial oil sands projects in Canada…Shell is also…under pressure from Church investors…to adopt a ten-point plan to combat environmental and social damage in the Niger Delta

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Company response
17 February 2010

Shell response re ECCR report

Author: Shell

We have received the report and are looking carefully at its recommendations to see if any of these can help improve Shell Petroleum Development Company’s (SPDC) overall social and environmental performance. In a number of cases the recommendations are already part of existing policies and practices...This report is a useful contribution to the debate in the delta, and SPDC has had, and will continue to have, detailed conversations about the issues with those who are concerned about the situation of the millions of people living there.

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16 February 2010

Shell in the Niger Delta: A Framework for Change - five case-studies from civil society [Nigeria]

Author: Ecumenical Council for Corporate Responsibility [UK]

ECCR's most recent report…provides an update on, the social and environmental impacts of the operations of Royal Dutch Shell's Nigerian subsidiary, the Shell Petroleum Development Company (SPDC), and explores what needs to change. At the report's core are five case studies commissioned from civil society organisations that work with Niger Delta communities. Questions that the report seeks to address include: How far has life for local communities improved or worsened in recent years? …What measures do the Niger Delta's people and civil society identify as priorities to be addressed and good practices to be followed…What should faith- and values-based investors…do to improve matters?...Focused around the corporate duty to respect human rights - to 'do no harm' - the report [makes a number of] concluding recommendations...

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1 February 2010

[PDF] Shell in the Niger Delta: A Framework for Change [Nigeria]

Author: Ecumenical Council on Corporate Responsibility [UK]

This report provides an update on Shell’s social and environmental impacts in the Niger Delta…[T]he case studies reveal a…continuing failure by Shell and [Shell’s Nigerian subsidiary, the Shell Petroleum Development Company (SPDC)] to operate in the Niger Delta fully according to robust international social and environmental standards; severe pollution of air, land and water, with disastrous impacts on health and livelihoods; inadequate inclusion of communities in decisions affecting their lives; a failure to dialogue respectfully, address critical needs and maintain trust; short-termism and lack of vision. Shell’s own General Business Principles, if rigorously implemented, would go some way to meet these concerns…The report makes…ten overall recommendations to Shell and SPDC…[includes response and comments by Shell, and full text of Shell’s General Business Principles]

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