have reviewed 36 associations. We plan to publish our next update in 
2022. 
 
   We will continue to work with governments, other companies, investors, 
non-governmental organisations, coalitions and industry associations to 
help society achieve the goal of the Paris Agreement and net-zero 
emissions. We will also continue to work towards greater transparency 
around climate lobbying and reporting. 
 
   [M]https://ert.eu/wp-content/uploads/2021/02/2021-02-25-Statement-on-Sectoral-Approaches.pdf 
 
 
   [N]www.shell.com/advocacy 
 
   [O]2019 Industry Associations Climate Review www.shell.com/advocacy 
 
   [P] 
https://www.shell.com/sustainability/transparency/advocacy-and-political-activity.html 
 
 
   A JUST TRANSITION 
 
   The energy transition will create employment and opportunities for 
people to learn new skills. It may also adversely affect workers and 
communities, for example in areas where traditional products, business 
activities or jobs are phased out. 
 
   The Paris Agreement refers to the importance of a just transition, 
recognising that governments must take into account the workers affected 
by the shift to a low-carbon economy, and create "decent work and 
quality jobs". The UN Framework Convention on Climate Change, the parent 
treaty of the Paris Agreement, has defined decent work as "jobs that 
provide adequate incomes and social protection, safe working conditions, 
respect for rights at work and effective social dialogues". 
 
   Our Powering Progress strategy seeks to support livelihoods, communities 
and an inclusive society as we transform our business to meet our target 
of becoming a net-zero emissions energy business by 2050, in step with 
society. 
 
   One of the strategy's four main goals is powering lives, which sets out 
how we support livelihoods and communities. As we transform, we will 
continue to provide jobs, encourage local businesses to be part of our 
supply chain, promote entrepreneurship and offer skills training in 
communities where we operate. 
 
   We are working to help find viable ways to provide low-carbon energy 
that can support successful local economies. To do this we will work 
with governments, local communities, customers, employees, employee 
representative bodies, suppliers and industry groups. 
 
   We seek to work with contractors and suppliers who contribute to 
sustainable development and are economically, environmentally and 
socially responsible. 
 
   Our employees and their well-being are critical to the success of our 
business. During the energy transition, Shell will continue to respect 
workers' rights in line with the 1998 Declaration of the Fundamental 
Principles of Rights at Work published by the UN's International Labour 
Organization (ILO). We will continue to comply with ILO occupational 
health and safety standards and applicable laws and practices. 
 
   As portfolio changes affect our assets during the energy transition, we 
will seek to: 
 
 
   -- continue to engage with employees, employee representative bodies and 
      relevant government bodies at a local level, keeping them informed about 
      our plans and listening to any concerns; 
 
   -- provide wages and benefits that meet or exceed the national legal 
      standards; and 
 
   -- provide equal opportunity in recruitment, career development, promotion, 
      training and rewards. 
 
   DEVELOPING SKILLS FOR THE FUTURE 
 
   As our portfolio changes, we will seek to help employees develop skills 
for the future. This will strengthen their long-term employment 
prospects and enable them to seize opportunities created by the energy 
transition. 
 
   For example, the Pulau Bukom manufacturing site in Singapore will be 
affected by organisational changes and job reductions as it becomes one 
of our energy and chemicals parks. We aim to significantly reduce 
Bukom's carbon dioxide emissions as the site produces fewer crude-oil, 
fuels-based products, instead favouring lower-carbon alternatives that 
may include biofuels. But over the course of three years, staff numbers 
will go from the current level of around 1,300 to around 800. 
 
   We have partnered with the Singapore Shell Employees' Union to launch a 
Joint Capability Council (JCC) to help staff acquire new skills that 
will enable them to succeed in future roles. The JCC will help develop 
courses for employees in areas such as digital literacy and data 
analytics. 
 
   The JCC builds upon the UpSkill ShellSG initiative for all staff in 
Singapore. The UpSkill initiative allows our Singapore staff to access 
training in a wide range of subjects including digital skills, 
tech-enabled services, advanced manufacturing, leadership and project 
management. The initiative was developed in collaboration with local 
authorities who shared the aim of helping workers acquire skills that 
will enable them to succeed in the economy of the future. 
 
   SUPPORTING THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS 
 
   The UN Sustainable Development Goals (SDGs) seek to address the world's 
biggest challenges, including ending poverty, improving health and 
education, and tackling climate change. Governments are responsible for 
implementing approaches that meet the SDGs, but success will require 
unprecedented collaboration and collective action involving businesses 
and civil society. 
 
   As a leading energy company, we will play our part in supporting the 
SDGs. Energy plays a critical role in enabling economic and social 
development and improving people's livelihoods. The supply of affordable, 
reliable and sustainable energy is crucial for addressing global 
challenges, including those related to poverty and inequality. That is 
why we are working to provide energy to those who do not have it today. 
 
   According to the International Energy Agency, in 2019 there were around 
770 million people in the world who lacked access to electricity. 
Hundreds of millions more are estimated to have an unreliable energy 
supply. One of our ambitions is that by 2030 we will provide reliable 
electricity to 100 million people in Africa and Asia who do not yet have 
it. 
 
   To help achieve this, we are developing market-based programmes that 
provide access to clean and affordable energy for some of the world's 
most remote and vulnerable people. We are investing in companies that 
specialise in solar home systems, mini-grids, and other innovations that 
improve access to energy. As well as managing our existing portfolio, we 
are also seeking to develop large-scale power projects in key markets 
and to use our global partnerships to improve access to energy. 
 
   POWERING LIVES THROUGH OUR ACTIVITIES 
 
   Managing the impact of our activities on people living near our 
operations is essential to being a responsible organisation. Many of our 
operations are located close to communities, and we work with them to 
understand their priorities and concerns. In doing this we use 
international standards as our benchmark, including the International 
Finance Corporation's Environmental and Social Performance Standards -- 
as well as our own rigorous standards. 
 
   We employ people in more than 70 countries, providing income and 
benefits such as health care and pensions. Every year, we spend tens of 
billions of dollars on goods and services in the communities where we 
operate. Our activities generate revenues for governments through the 
taxes and royalties we pay and the sales taxes we collect on their 
behalf. This helps fund health care, education, transport and other 
essential services. 
 
   We strengthen local economies and employment opportunities through 
enterprise development programmes such as Shell LiveWIRE. The overall 
goal of these programmes is to enable communities to participate in and 
benefit from the stimulation of social and economic development. In 
2020, 19,319 people participated in our programmes, which also supported 
1,017 businesses. This helped create 1,805 jobs. In 2020, 99 businesses 
supported by Shell LiveWIRE entered our supply chain. 
 
   CLIMATE GOVERNANCE 
 
   Climate change and risks resulting from greenhouse gas (GHG) emissions 
are a significant risk factor for Shell. They are managed in accordance 
with other significant risks through the Board and the Executive 
Committee. 
 
   The Board committees play an important role in assisting the Board with 
regard to governance and oversight of management of climate change risks 
and opportunities, as described in the Annual Report. The Safety, 
Environment and Sustainability Committee (SESCo) assists the Board in 
reviewing the practices and the performance of the Shell Group of 
companies, primarily with respect to safety, environment including 
climate change, and sustainability. 
 
   When reviewing these areas and deciding how to advise the Board, SESCo 
takes into account the Shell General Business Principles, Code of 
Conduct, and HSSE & SP Control Framework. SESCo's duties include 
reviewing Shell's progress towards meeting our climate targets and the 
energy transition. SESCo also advises the Remuneration Committee (REMCO) 
on metrics relating to sustainable development and energy transition. 
 
   INCENTIVES AND REMUNERATION 
 
   The Remuneration Committee is responsible for determining the Directors' 
Remuneration Policy, in alignment with our business strategy. 
 
   Starting in 2021, we are increasing the weight associated with GHG 
emissions management in the annual scorecard, which helps determine the 
annual bonus levels for all our employees, including members of the 
Executive Committee. The GHG emissions intensity metric and its weight 
(10%) will remain unaltered, but we will add a new metric that measures 
the execution of GHG-abatement projects with a weight of 5%. 
 
   Performance Share Plan and Long-term Incentive Plan [Q] 
 
   For 2021 awards made under the Performance Share Plan (PSP), the 
weighting of the energy transition condition has doubled from 5% to 10%. 
For 2021, the weighting of the energy transition condition in the

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