
In anticipation of the Netherlands' transposition ofthe EU Corporate Sustainability Reporting Directive(CSRD) into national law, Shell has for the first timein this report included a Sustainability Statementssection (pages 341-440), prepared on a voluntarybasis in accordance with the CSRD and EuropeanSustainability Reporting Standards (ESRS). The CSRD requires certain European and non-Europeancompanies (including Shell plc due to its listing on EuronextAmsterdam) to make disclosures on environmental, socialand governance topics in accordance with the ESRS. Wehave applied the structure proposed in the ESRS, adopted"incorporation by reference" and sought to integrate thedisclosures in other sections of this report where appropriateand permitted. Section headers in the Sustainability Statementsfollow the structure of the ESRS. Terms and definitions used inthe text are defined by Shell unless explicitly stated otherwise. The Sustainability Statements section forms anintegral part of the management report. [A] [A] The consolidated management report, as referenced in the CSRD, includes thestrategic report and governance sections of the Annual Report and Accounts. Contents Miscellaneous StrategicReport Chair's message liquefied natural gas (LNG) and deep-water oil and gas production withsome important new projects. We announced a final investment decisionfor Manatee, an undeveloped gas field in Trinidad and Tobago, whichwill have a key role in providing gas to the country's Atlantic LNG facility. Our deep-water Whale platform in the Gulf of America startedproduction in January 2025. At its peak, we expect that Whale willproduce around 100,000 barrels of oil equivalent a day, enough to fuelthe daily journeys of 2.7 million cars in the USA. It will operate with 30%lower carbon intensity over its life cycle than Vito, another US deep-waterplatform. In February 2025, our next-generation Penguins facility startedproduction in the North Sea. It will produce mostly oil but also enoughgas to heat around 700,000 UK homes a year, with around 30% loweroperational emissions than its predecessor, Brent Charlie [A]. Less emissionsWe kept our focus on reducing emissions as we worked to become a net-zero emissions energy business by 2050. In 2024, we achieved ourshort-term target to reduce the net carbon intensity of the products wesell, compared with 2016. We achieved this mainly by reducing salesof oil products and growing power sales. In 2024, we continued to do what Shell does best,connecting energy and people. By the end of 2024, we had achieved 60% of our target to halveScope 1 and 2 emissions from our operations by 2030, comparedwith 2016 levels. In total, we served around 33 million customers at Shell-branded retailsites every day, and around 1 million business customers across morethan 70 countries. We used the power of our people, brand, technologyand trading network to provide our customers with the oil and gas theyneed today. At the same time, we increasingly helped them to makelow-carbon choices, from biofuels to charging for electric vehicles. We continued to transform our business. In January 2024, weannounced the decision to stop processing crude oil into petrol, jetfuel and diesel at the Wesseling site of our Energy and Chemicals ParkRheinland, Germany, and to produce premium oils instead. In April2024, we opened our bioLNG liquefaction plant in Germany, whichcan produce enough bioLNG to fuel around 5,000 LNG trucks a year. In this second year under our Chief Executive Officer, Wael Sawan,Shell went from strength to strength. We improved Shell's operationalperformance, and made good progress against the financial andclimate targets and ambition we set out at our Capital Markets Dayin 2023 and in our Energy Transition Strategy 2024. Technology and innovationInnovation remains vital for a successful transition to low-carbon energy. In 2024, we spent around $500 million on projects thatcontributed to decarbonisation, almost half of our total spending onresearch and development. In December, I saw some of that work formyself when I visited the Energy Transition Campus Amsterdam in theNetherlands. I was especially excited to see how our research isbuilding on Shell's leadership in gas-to-liquids (GTL) technology,something we pioneered almost half a century ago. We demonstrated that our strategy to deliver more value with lessemissions is producing strong results, and compelling shareholderreturns. By the beginning of 2025, we had announced $3 billionor more in buybacks for 13 consecutive quarters. Today, the Pearl GTL gas-to-liquids plant in Qatar uses natural gas toproduce an alternative fuel to conventional diesel for transport, as wellas oils and lubricants. We have also used GTL technology to developimmersion cooling fluids for data centres. These fluids reduce costs,energy consumption and emissions compared with conventionalcooling. This will be increasingly important as the growth in artifici