壳牌股份有限公司2025年年度报告及账目

StrategicReport Chair's message Our task is to manage oil and gas production responsibly andcompetitively, with a focus on reducing the emissions from ouroperations. We also believe that gas, including LNG, can play a vitalrole through the energy transition — as a flexible and reliable lower-carbon alternative to coal in power generation and industry, as asolution for heavy-duty transport and shipping, and as a complementto renewables, helping balance grids as wind and solar scale. June 2025 saw the first cargo from the new LNG Canada facility.It was a proud moment for Shell and our partners, not only becauseof its significant technical achievements, but because it was designedto be among the lowest carbon intensity LNG facilities in the world —with many cargoes going to meet growing energy demand in Asia. At the same time, climate change remains a real challenge. We havea target to become a net-zero emissions energy business by 2050,and we are committed to playing our part in helping to decarbonisethe global energy system. Low-carbon energy options are advancing on multiple tracks.Technologies such as wind and solar are now well established, whileothers — including biofuels like sustainable aviation fuel, renewablehydrogen and carbon capture and storage (CCS) — will be best able toscale if policy frameworks develop, markets evolve and demand builds. Shell provides energy, directly or indirectly, to arounda billion people every year. That number speaks not onlyto our reach, but also our role in connecting people withthe energy they need. Even as the energy mix changes, overall demand continues to grow.Moving from a global energy system built on coal, oil and gas to onethat is increasingly electrified means redesigning the infrastructure thatunderpins modern life. We must change how we power industry, heathomes, move people and goods, build cities and balance grids. As Chief Executive Officer, Wael Sawan has continued to embed afocus on performance, discipline and simplification across Shell. Thishas translated into stronger operational performance, greater disciplinein capital allocation, and more clarity about where we create value. Despite these challenging objectives, there is progress to point to.In October, I visited China where I saw the pace of electrification formyself. I met Shell colleagues and partners engaged in that effort, scalingup electric vehicle infrastructure and working alongside many of China'sleading industrial players. This approach has supported attractive shareholder returns: in the threeyears to the end of 2025, we have outperformed our peers in terms oftotal shareholder return [A]. In 2025, we distributed 52% of cash flowfrom operations to shareholders through our dividends and sharebuybacks, as we continue to grow value per share. Taken together, these developments illustrate an energy transition thatis under way, but far from uniform. Countries are advancing from verydifferent starting points, shaped by their resources, infrastructure andenergy needs. Even as energy systems change, global economic growthdepends on supply that is available, reliable and delivered at scale. Today, Shell continues to become more competitive and resilient — andbetter positioned to create value and help provide the energy peopleneed in a world that has become more fragmented and complex. Our changing worldA renewed focus on energy security has brought with it a broader Our role in the energy transitionIn this context, Shell's Board has a clear fiduciary responsibility to recognition that oil and gas will still represent a significant part ofthe global energy system for decades to come. At Shell, we continueto invest in helping to provide secure supplies of energy with projectslike Orca in Brazil, formerly called Gato do Mato, and our multipleproduction hubs in the Gulf of America. promote the long-term success of the company, including throughcompetitive returns to our shareholders. For Shell, fulfilling thatresponsibility means pursuing investments that help us outperformthe competition and increase returns — all within the reality that thereis only a finite pool of money investors are willing to commit to theenergy system. [A] See page 188 in the "Annual Report on Remuneration" for more information. As a result, Shell maintains flexibility across emerging technologies sothat if conditions strengthen and markets mature, we are well positionedto compete. We focus on where we can make a difference at scale,where we have competitive advantage, and where we can deliver valuefor our shareholders. It was through this lens that we took the decision inSeptember 2025 not to restart construction of our planned biofuels plantin Rotterdam. We have also seen what is possible when the right conditions cometogether. In August 2025, we marked the first injection of CO2at theNorthern Lights project in Norway — Europe's flagship cross-bordercarbon transport and storage development and a milestone m