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co-exist? Can the extraction of coal, oil and gas resources be projects, we believe we, the industry, should be seen as a
carried out in such a way as to not compromise the integrity of legitimate stakeholder in the designation of protected areas.
that area's biodiversity values, whether it falls under protection If category designation required such a process, they would
or not? become a tool for encouraging more strategic land-use
planning decisions, which, in the end, may better reconcile
The case for action has both business and reputation land use options for a particular region. This is critical to
perspectives. Business objectives are to safeguard activities in avoid the almost inevitable tensions that arise when one
existing sites of high biodiversity value by articulating the ministry looks to develop its country's protected area system
view that we can operate in such areas without long term without consulting other ministries including those responsible
impact, bringing a net positive benefit to conservation. At the for licensing oil and gas concessions. The end game here for
same time we wish to ensure that any new system for Shell is not to, de facto gain entry to these protected areas but
designating protected areas has clear rules and procedures, to consider what land-use options might be available which
with a level playing field. Reputation objectives are to best suit all stakeholders.
maintain a proactive approach to secure and maintain an
industry seat at the table in future discussions, and to minimise Shell acknowledges that the basis for the IUCN Categories are
reputation risk. the management objectives of the protected areas, but sees the
need for a system of assessing protected areas on a periodic
What we have done so far basis to determine if they are effectively managed – and if not,
Shell's response to this challenge is to do three key things: to highlight or recommend changes to management. If, over
time, the management effectiveness and management
- play a role in the public policy debate around protected objectives of the PA consistently do not match, there should
areas; be an agreed process to re-assigning the category, through
- work to minimize our operational footprint, and some sort of 'grievance procedure'. In conclusion, Shell
- make a positive contribution to biodiversity conservation. supports protected areas as an important component of the
conservation agenda, delivering in situ conservation objectives
The Public Policy Debate set out in international conventions such as the Convention on
At Shell, protected areas are explicitly highlighted in our Biological Diversity. Shell recognises the importance of
Group Biodiversity Standard (Figure 1), published in July protected areas and the years of hard work invested by the
2001, and the first to emerge from an energy company. We conservation community in their establishment and
recognize however, that biodiversity is important everywhere maintenance. Shell is furthermore committed to work with the
and not only in protected areas and that the statement that ‘we IUCN World Commission on Protected Areas (WCPA) to
respect the basic concept of protected areas’ did not go far help strengthen the IUCN Categories system for it to better
enough for some NGO's. serve its objective of promoting the conservation of
sensitive areas.
The World Conservation Union (IUCN) passed a
Recommendation at its 2000 Conservation Congress in We have spent the last two years defining what a blanket
Amman, Jordan. It called upon governments "to prohibit prohibition to operate in the various categories of protected
mining (including oil and gas operations) from certain areas means for us. Recently we have announced a number of
categories of protected areas- the IUCN Category I-IV commitments with regard to protected areas:
protected areas". Since 1994, IUCN has been advocating a
global system of classifying protected areas by their 1. Shell will not explore for, or develop, oil and gas resources
objectives. Shell respects the need for a global system and from within natural World Heritage Sites. This is the first
sees the six IUCN Categories as the best available framework. time an energy company has publicly declared where it will
What has happened more recently is that these categories are not operate. Some may regard this commitment as one not
being used by certain organisations to determine land-use really worth making – we take a different view. First, it is a
options and to push companies to adopt the Amman public statement saying that we recognise the outstanding
Recommendation by making blanket prohibitions about where universal value that these sites represent for society. Second,
they will and will not operate. This was never the original the commitment builds trust between us and the conservation
intention of the IUCN Categories – they were designed to movement – it is a signal that we are serious about
provide a common language around the myriad of different biodiversity. Third, it sends out a very strong signal that we
protected area systems of the world. If the system is to be support the systems that allow natural WHSs to become
taken-up by Governments and provide a level playing field, designated – hence our ability to make a blanket prohibition
then it will need to be improved. We believe there are a on existing and future sites – and that is why we are NOT
number of key areas where there are gaps at present. willing to make an equivalent statement yet regarding other
designations of protected areas (the systems supporting those
The Categories could be strengthened by introducing a are just not in place), and fourth, it begins to give us a
consistent open, transparent and inclusive process (involving legitimate seat at the policy table – we feel we are a legitimate
key stakeholders such as local communities, government stakeholder in the protected areas debate just as the ENGOs
agencies and industry) for designating protected areas. Just as are a legitimate stakeholder in the activities we carry out.
NGOs are legitimate stakeholders when deciding about energy
SPE 86577 3
2. We will further upgrade our operational practices wherever Conservation Association) and OGP (International
we operate in IUCN category I-IV protected areas or where an Association of Oil and Gas Producers).
environmental, social, health impact assessment (ESHIA)
indicates high biodiversity values. We will become involved Reducing our Footprint
in spatial/regional planning exercises, assess our secondary We are currently working hard to embed our Biodiversity
impacts, implement Biodiversity Action Plans, and conduct Standard into business operations and systems. Spatial
appropriate baseline and monitoring studies in such areas. information of protected areas and other sensitive regions
(World Heritage sites, IUCN Categories I-VI protected areas,
3. We will publicly report on our activities in IUCN Ramsar wetlands, WWF Global 200 Ecoregions and
Categories I-IV. Conservation International's Biodiversity Hotspots) has been
loaded onto an internal Geographical Information System
4. We will work with IUCN and others to develop and pilot (GIS). This 'Early Warning System' helps staff developing
ways of strengthening the management effectiveness of new business opportunities to identify risks related to
protected areas through the provision of key skills, creation of protected areas and other areas of biodiversity value/
sustainable livelihoods and by exploring options for sensitivity. Early engagement with key stakeholders such as
sustainable financing. WWF is now institutionalised.
While defining what we meant by our reference to protected Biodiversity has also been integrated into our internal ESHIA
areas in our Standard, we have been given the opportunity to guidelines as well as into our internal assurance process, by
also contribute to the wider policy debate. Shell is a member which each Operating Company has to assure our Committee
of the Steering Committee for the "Speaking a Common of Managing Directors that they are complying with HSE
Language" project. The objectives of this project are: policies and underlying standards. We are working on
developing guidance to have in place Biodiversity Action
• establish the impact and effectiveness of the 1994 Plans at sites in or near areas with high biodiversity value. We
IUCN guidance; are also producing a number of tools to internally
• examine what needs to be done to develop and communicate the biodiversity message – a note to Shell
promote the objectives-based system of protected managers, internal website, guidance notes, posters, CD's,
area categories itself, and consider how it should be magazine articles, guidance on how to implement the
linked to other initiatives in protected area planning Standard etc.
and management;
• guide the programme of work on protected areas of Making a Positive Contribution
the CBD, and We recognise that to be taken seriously, we must demonstrate
• provide technical advice on the Category System to a our commitments by taking action on the ground. Shell has
proposed programme of work on protected areas for over a hundred biodiversity related projects worldwide
IUCN. ranging from conservation, science, environmental education
to capacity-building and communication type projects (see
The project outputs will provide a review of progress of the figure 2 for list of key projects). Following are a few
implementation of the IUCN protected area management examples of projects where we are putting our policy into
categories system, leading to the recommendations for the action and making a positive contribution.
system's refinement and development (see
http://www.cf.ac.uk/cplan/sacl/ for more details). Gabon: In September 2002, President Omar Bongo of Gabon,
declared 10% of his country under protection and created 13
Shell has been working to strengthen its relationship with the new national parks. Two of these parks surround Shell
IUCN, both with the Secretariat and its regional offices. Shell Gabon’s oilfield operations, where we have been present for
benefited from a two-year IUCN secondment that helped us to over 20 years. Through a grant of US$ 2.8 million, the Shell
work on the protected area issue and on specific projects on Foundation (together with Shell Gabon) has facilitated a
the ground. Shell will be providing a return secondment to unique partnership between science and industry. Scientists
IUCN in 2004 for a period of 2-3 years. IUCN's unique from the Smithsonian Institution’s Monitoring and
membership of government, government agencies and NGOs Assessment of Biodiversity Program (SI/MAB) have been
has provided Shell with access to a wide range of stakeholders independently assessing the impact of Shell Gabon's
and views. One example is the role we played at the recent operations on biodiversity and comparing this to that of the
World Parks Congress, the first time industry was allowed to adjacent national parks. Early results have indicated that the
contribute to the Congress proceedings. biodiversity within Shell Gabon's operations remains intact
with healthy ecosystems and for certain taxa the biodiversity is
Shell has also been keeping a close eye on what is going on even higher than the surrounding areas including the national
with the CBD process through consultations with key parks. The scientific information collected will be used to help
stakeholders and through the industry trade associations, drive improvements in operational performance and will be
IPIECA (International Petroleum Industry Environmental used to contribute towards the longer-term conservation of the
general region. Shell Gabon is working with SI/MAB and
others to determine whether our area of operation could fall
4 SPE 86577
under some sort of protection to form an important biological Brunei: Brunei Shell Petroleum’s Panaga Sub-Aqua Club
corridor between the two adjacent national parks. received approval to conduct a two-year biodiversity study at
the end of 2002 on the platforms in the Ampa and Fairley
fields off shore Brunei. The area experiences a complex
Sakhalin: Sakhalin Energy Investment Company Ltd (SEIC) is
interaction of oceanic and brackish water from the Belait
fully aware of both the importance of biodiversity within the
River and the Baram River, a major river about 25 km South
marine, freshwater and terrestrial habitats of Sakhalin Island,
West of the area, which encourages an enormous diversity of
and the current and potential threats to its conservation.
life. The study will provide an understanding of the
Through detailed environmental impact assessments SEIC has
biodiversity around these platforms. There are two main
provided considerable resources to the maintenance of
objectives for this study: to promote an awareness of the
biodiversity, delivered in the form of a number of initiatives
potential positive impact of the oil and gas industry on the
aimed at protecting rare and endangered species. Amongst the
marine ecosystems, and by understanding local controls on
most substantial of these initiatives are those aimed at the
species distribution, provide information to assist in the
protection of the Western Gray Whale. Since 1997, the
optimum placement of future artificial reefs.
Company has provided funding support to the Sakhalin Island
Western Gray Whale Monitoring Programme, which is
Conclusion
undertaken by independent marine mammal researchers on an
Shell sees biodiversity as a real business issue: if not
annual basis. In 2003, Sakhalin Energy pledged US$ 5 million
addressed properly it increases our risks and potentially
towards this project, which will initially last until 2007 and
jeopardizes our ‘licence-to-operate’. On the other hand
have geographical coverage across five nations, namely
biodiversity presents great opportunities for us to work in
Russian Federation, Japan, Republic of Korea, People’s
partnership, empower staff, make a positive contribution, and
Democratic Republic of China and Taiwan. The outputs of
to play an active role in the public policy debate.
this Programme have guided the development of a Western
Gray Whale Protection Programme, which has been in place
Shell supports protected areas as an important component of
since 2001. It provides detail on the mandatory mitigation
the conservation agenda, delivering conservation objectives
measures in place to protect the whale during construction and
set out in international conventions such as the CBD. Shell
operational activities in the marine environment. One
recognises the years of hard work invested by the conservation
important mitigation measure includes the zonation of project
community in their efforts to establish and maintain
marine activities, which restricts marine operations within
protected areas.
areas that are in relative proximity to known whale feeding
areas. Additional commitments to biodiversity conservation
Shell sees the need for pragmatic and yet innovative
include the Steller’s Sea Eagle Monitoring Programme, to
approaches when it comes to addressing the needs for energy
which Sakhalin Energy has pledged US$ 300,000 over three
and biodiversity conservation. Shell does believe that there
years. The Programme will be carried out by independent
are some areas too sensitive to operate in, namely natural
Russian researchers in collaboration with Japanese specialists.
World Heritage Sites. But also feels that it is possible through
a transparent process, working in partnership and with
The Netherlands: The Nederlandse Aardolie Maatschappij b.v. stringent operating practices, that it is possible to operate
(NAM) is an oil and gas exploration and production company, responsibly in some areas under protection and other areas of
which is operated by Shell and situated in The Netherlands. high biodiversity value.
NAM has been researching bird species since 1992 to assess
and mitigate the possible impact of our operations. The North
Sea is an important migration route for a large number of bird Figure 1. Shell Group Biodiversity Standard
species including songbirds, waders, birds of prey and other
In the Shell Group, we recognise the importance of
bird species. More than 50 million birds may cross the North
biodiversity. We are committed to:
Sea twice each year, with peaks in spring and autumn. The • work with others to maintain ecosystems
investigations were initiated following observations that large • respect the basic concept of protected areas
flocks of migratory birds occasionally entered the flare during • seek partnerships to enable the Group to make a
well testing. Over the past ten years the research has been positive contribution towards the conservation of global
extended in order to investigate the impact of noise and light biodiversity
in a much wider context and develop mitigation measures.
Shell companies will:
Canada: A further way Shell supports conservation efforts has • conduct environmental assessments, which will include
been through its partnership with the Nature Conservancy of the potential impacts on biodiversity, prior to all new
Canada (NCC). Shell pledged US$ 160,000 for the three-year activities and significant modifications of existing ones,
project to secure properties and conservation easements on and
ecologically important lands in the Alberta Rocky Mountain • bring focused attention to the management of activities in
region. Shell is looking at other opportunities for enhancing internationally-recognised 'hotspots', including the
identification of, and early consultation with, key
or creating new areas under protection in the US, Latin stakeholders.
America and Africa.
SPE 86577 5