Progress and Barriers In Relation To Sustainable Development in Shell (Case Study of Shell Nigeria)

Abstract

Nigeria accounts for about 16% of the Shell's global oil business ventures, and about 7% of total profits. Shell has come across a wide range of sustainable development issues throughout its operations. Against this background, this study examines the performance (environmental and social) and efforts by Shell Nigeria in moving their operations in the way that promotes sustainability; and also looks into the hindrances to implementation of the practice of sustainability. The operational data and the company statements were used to access and explain the company's approach to sustainability. Shell's progress in this approach was evaluated and its performance were analysed from data on its social and environmental reports for seven years (2005 to 2011). The general approach of Shell indicates that it understands sustainability issues fronting it and the actions required to improve sustainable performance. Despite Shell's good progress in social and environmental performance over the years, as expressed in their annual sustainability reports, there still exist some challenges and worries particularly in the areas of oil spills, gas flaring and security in the Niger Delta.Among other obstacles, the operational spills in Nigeria have no significant environmental improvement over the years, and have contributed to the volume of global operational spills in Shell. It claims that 72% volume of the spills is from sabotage and theft, and the remaining percentage is due to its own operational failures and ageing facilities; but its 2011 report shows an outrageous oil spill due to its operations over the sabotage spill. Shell is encouraged to target long-term performance in sustainable development that is robust across economic, social, environmental and political spheres in Nigeria.