Sustainability in Royal Dutch Shell

Running head: SUSTAINABILITY IN ROYAL DUTCH SHELL
Sustainability in Royal Dutch Shell
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1SUSTAINABILITY IN ROYAL DUTCH SHELL
Executive Summary
This report intends to throw a light on the focus of oil and gas industry on sustainability. The
report presents an in-depth view of how this industry tackles sustainability in respect of product,
decision and operations. It studies the initiative taken by Royal Dutch Shell towards
sustainability. Further this report states the types of crude oil and factors that affects oil market,
meaning of upstream and downstream in oil industry. It intends to study the strategies of shell,
the impact of conflicting shareholders on the strategies of this industry, pricing policies and
government regulations.

2SUSTAINABILITY IN ROYAL DUTCH SHELL
Table of Contents
Introduction......................................................................................................................................3
Aim of the report.............................................................................................................................3
Theories and concepts of sustainability...........................................................................................4
Introduction to oil and gas sector.....................................................................................................5
Sustainability in oil and gas industry...............................................................................................5
Factors affecting energy market....................................................................................................10
Upstream and downstream............................................................................................................11
Strategies of Royal Dutch Shell.....................................................................................................12
Impact of conflicting stakeholders and shareholders on strategies of oil companies....................13
Oil price theories and taxation.......................................................................................................13
Government regulations and their impact on oil industry.............................................................14
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

3SUSTAINABILITY IN ROYAL DUTCH SHELL
Introduction
According to Solow (2014) sustainability related to the concept of coping up adopting to
the environmental changes and using the resources to meet the present needs without affecting
the future generation’s ability to meet their own requirements. It not only includes environmental
sustainability but also includes sustainability of social and economic resources. The concept of
sustainability also includes developments in social and economic aspects of the society.
Sustainability is regarded as a component of corporate ethics and Corporate Social
Responsibility (CSR), which has emerged due to public’s dissatisfaction towards the damage,
caused to environment by industries in order to make profits. The three pillars of sustainability
are environment, society and economy. The sustainability issue is a major concern for
governments and owners of oil and gas companies from across the world. The negative impacts
of activities that are carried out by the oil and gas industries are not only the health and lives of
people but on the environment as well which results to pollution (Bamossy and Solomon 2016).
This report deals with the analysis of methods by which international oil and gas companies
maintain sustainability in respect to their products, business decisions and operations citing the
example of the Royal Dutch Shell. It intends to critically asses how the pressure from
stakeholders impacts the strategies of such companies. The followings sections include
discussions related to the factors which affect oil and gas industries, sustainability and
environmental change, marketing strategies and government regulations.
Aim of the report
The aim of this report is to understand the concept of sustainability and sustainability
development. By the end of the report, it is expected to gain a full knowledge about how
sustainability is maintained and developed in oil and gas companies citing the example of Royal