A just energy transition
As we transform into a net-zero emissions energy business, we work with governments and society to support positive economic and social impacts of the transition on our workforce, communities, suppliers and customers.
The importance of a just transition
A successful energy transition depends on more than just financial investment and technological advances. It also needs to be a just transition 鈥� that means a fairer distribution of the costs and benefits as the world moves to a net-zero emissions energy system. Shell supports the Paris Agreement on climate change, which recognises the importance of a just transition. Shell aims to contribute to a just and inclusive transition by making a positive economic and social impact, while seeking to minimise negative effects. We seek to leverage our existing structures to expand social dialogue with employees, employee representative bodies, relevant local government bodies and communities to address the social aspects of the energy transition and to advance human rights and labour rights.
Respect for Human Rights: Respecting human rights is an essential element of just transition. Shell is committed to respecting human rights, as set out in the United Nations Universal Declaration of Human Rights and the International Labour Organisation's Declaration on Fundamental Principles and Rights at Work. Read more at shell.com/humanrights.
Advocacy: When engaging with governments, we seek opportunities to advocate for policy ambitions that ensure the economic and social benefits of the transition are inclusive and distributed in a fair way. For example, just transition is now one of the four fiscal principles we are advocating in support energy transition (see Shell Tax Contribution Report | Shell Global).
Shell鈥檚 just transition focus areas
Delivering a just transition will require governments, businesses, organisations and individuals across society to play their part. Shell鈥檚 contribution to a just transition focuses on making a positive impact in four key areas: our workforce, our communities, our suppliers and our customers.
Our workforce
Our communities
Our suppliers
Our customers
Our workforce
Employee dialogue
Shell hosts employee-centred events to help ensure employees are informed and involved on strategy implementation and priorities. Examples include a Net-Zero Emissions week, delivered in partnership between business leaders and Shell's Organisational Development & Learning team. This included coaching sessions to help employees manage their career during the energy transition and a live Q&A session to help employees understand Shell鈥檚 just transition approach.
Building skills and supporting employability
We are continuing to find ways to help our employees learn new skills needed for the energy transition. In 2023, around 6,900 Shell employees 鈥� up from 4,000 in 2022 and 1,700 in 2021 鈥� completed courses on a range of subjects, including hydrogen production, carbon capture and storage, and greenhouse gas and energy management.
Fair pay
In 2022, Shell published its Fair Pay Principles (PDF), to increase transparency of our pay policies for staff. We also expect our suppliers to provide their employees with wages and benefits that meet or exceed the national legal standards.
Diversity, Equity and Inclusion (DE&I):
Embedding equality of opportunity for groups that have been traditionally under-represented in energy is an important element of a just and fair transition. Shell has set a bold ambition, which is embedded in our company strategy and applies to all parts of our business: to become one of the most diverse and inclusive organisations in the world. Read about our DE&I ambitions, our roadmap, and our progress for diversity, equity and inclusion at Shell.
Our inclusion strategy is about everyone, and we prioritise four equity focus areas today 鈥� gender, race and ethnicity, LGBT+ and disability inclusion and enABLEment.
Our communities
Jobs and communities
As the energy transition generates more jobs, it is important that the workforce in the communities is provided with the opportunity to reskill as part of plans for an inclusive labour force in the new energy system. This requires robust dialogue and collaboration between government, civil society and business.
Energy Transition Skills Hub in Aberdeen, Scotland
One example of successful multilateral collaboration is a project with Energy Transition Zone Ltd (a not-for-profit company) Shell 麻豆传媒, North East Scotland College and the Just Transition Fund of the Scottish Government. The hub was established after extensive stakeholder engagement to understand regional workforce requirements to support the transition. Together, we have created the Energy Transition Skills Hub in Aberdeen, which aims to equip the region鈥檚 future workforce with the skills to drive the energy transition.. In addition, Shell 麻豆传媒 has also established the Pembrokeshire and Fife Energy Transition Skills Hubs, these three hubs form part of Shell 麻豆传媒鈥檚 wider ambition to help 15,000 people into jobs with a focus on the energy transition by 2035.
Sharing the benefits in innovative ways
At our Pottendijk wind and solar power park in the Netherlands, which opened in 2023, we are sharing the proceeds from the renewable energy we generate. Over the next 16 years we expect to pay around $2 million into a community fund, which will be used as the community sees best.
Working with social organisations
In the energy transition, Shell 麻豆传媒 aims to reach people from a range of backgrounds, education levels and income disparities, with a lens on the more socio-economically disadvantaged. For example, through our partnerships with charities and social organisations like Generation 麻豆传媒 and Catch22, both of whom support people from disadvantaged communities to employment, we are helping unemployed people into jobs advising on home energy efficiency, project management and digital and data roles.
In 2024, Shell Nederland launched the Shell Impact Fund, a bespoke investment fund for social entrepreneurs and impact ventures in their early stage of business.
With the fund鈥檚 targeted investments, Shell hopes to indirectly help 100,000 Dutch households and small and medium-sized enterprises (SMEs) with reducing their energy costs, reducing their energy consumption, or ensuring access to cleaner energy and more sustainable mobility.
Since 2023, Shell Nederland has also been launching several donation rounds to support social organizations with the switch to more sustainable forms of energy and mobility or to take energy-saving measures. From installing a charging station to acquiring insulation material, almost 400 grassroot initiatives throughout the Netherlands have already received a contribution to help increase their positive societal impact.
Our suppliers
We have set clear standards for labour rights, living and working conditions for our employees and contractors. We support the industry coalition Building Responsibly and have included their Worker Welfare principles into our own Safety, Environment and Asset Management Standards in the Shell Performance Framework, in order to implement them across our activities and contracts using a risk-based approach. The Worker Welfare Manual outlines requirements on worker welfare risk assessments, welfare standards on working and living conditions and labour rights.
In relation to our global procurement, Shell focuses on helping companies local to our operations set themselves up to join our supply chain. . Supplier diversity is another element of creating and sharing social and economic benefits. In countries around the world, we buy from and support the development of businesses that are part of historically underrepresented or underserved groups.
Our customers
We help ensure energy security in our key markets and invest in businesses that supply energy access in emerging markets. Through our social investments, we also provide funds, expertise and resources to increase energy access outside of our commercial business. The supply of affordable and secure energy is crucial for addressing global challenges, including those related to poverty and inequality. For example in November 2024, we joined forces with bp, Equinor and TotalEnergies to announce a $500 million joint investment commitment to help address the challenges of energy access. This joint investment seeks to support promising, high-impact projects, primarily in Sub-Saharan Africa, and South and South-east Asia, that are working to bring access to electricity and improved cooking conditions to underserved communities.
Page last updated: March 25, 2025
