Shell Annual Report 2010

SUSTAINABLE DEVELOPMENT IN ACTION 2010 Shell companies in the Philippines

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Sustainable Development in Action 2010 Introduction

CONTENTS 1 2 3 5 9 12 15

INTRODUCTION FROM THE COUNTRY CHAIRMAN WHO WE ARE AND HOW WE WORK KEY PROJECTS PERSONAL & PROCESS SAFETY ENVIRONMENTAL IMPACTS SHELL IN SOCIETY EMPOWERING THE YOUTH

PARTNERSHIP Prepared by the Shell companies in the Philippines (SciP) in collaboration with the Centre for Research and Communication (CRC) of the University of the Asia and the Pacific (UA&P), Sustainable Development (SD) in Action 2010 is a publication which imparts an update on Shell’s SD programmes and initiatives in the Philippines during the past year. SciP has been producing an annual report for more than a decade now and continues its commitment to communicate its efforts to contribute towards a sustainable energy future. SciP has partnered with the UA&P – CRC in the publication of its 2010 report in support of the research institution’s aim of utilising research and communication as a way of translating progressive ideas into action and contributing towards nation-building.

PAPER SPECIFICATION Beckett Expression is made carbon neutral by neutralising its thermal energy emissions with Verified Emissions Reduction credits (VERs).

In addition, 100% of the electricity used in the manufacturing of this grade is entirely offset by Green-e certified wind certificates.

All virgin fibre content in Beckett Expression is elemental chlorine-free (ECF) and all post consumer recycled fibre content is process chlorine-free (PCF).

Beckett Expression recycled papers contain at least 30% post consumer waste recycled fibre, are certified by Green Seal, and meet the EPA guidelines for recycled papers.

All Beckett Expression items are certified by Smartwood for Forest Stewardship Council (FSC) standards.

ONLINE VERSION OF SD IN ACTION 2010

Read the online version of SD in Action 2010 by typing the link into a web browser. Alternatively, use a smartphone with a QR reader app to scan this symbol.

www.shell.com.ph/sdinaction

Sustainable Development in Action 2010 Introduction

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INTRODUCTION FROM THE COUNTRY CHAIRMAN AMIDST THE CHALLENGES TO OUR BUSINESSES, WE HAVE DEMONSTRATED THE RESILIENCE OF OUR SUSTAINABLE DEVELOPMENT PROGRAMMES, BORNE OUT OF JOINT ACTION WITH PARTNERS TOWARDS A SHARED VISION OF POWERING PHILIPPINE PROGRESS. THIS IS WHAT WE ARE: GOOD NEIGHBOUR AND GOOD BUSINESS. Shell companies in the Philippines (SciP) continued to support the country’s economic growth in 2010 through the vital supply of energy for the nation’s growing needs, while managing the carbon footprint of our operations, promoting local development in the communities where we operate and partnering with institutions to push for initiatives geared towards national progress.

Our largest industrial investment in the country, the Malampaya Deepwater

Gas-to-Power Project, supplied almost half of Luzon’s electricity requirements in 2010 through natural gas, the cleanest fossil fuel.

Our largest fuel distribution terminal, the Shell Pandacan Oil Depot in Manila, was recognised by the Laguna Lake Development Authority (LLDA) with a Lakan ng Lawa award for its stewardship of the Pasig River, as evidenced by the depot’s consistent compliance and exemplary performance in environmental protection. Moreover, Shell Pandacan Oil Depot was cited as a best-practice distribution site based on a Shell global social performance review that recognised the depot’s collaborative work with stakeholders in developing programmes that benefit the local community. Currently the biggest of six Shell Shared Service Centres across the globe, Shell Shared Services Asia, B.V. (SSSA) in Manila, continues to provide gainful employment to Filipino professionals, having grown to almost 3,000 staff in 2010.

Despite numerous challenges throughout the year, including the shutdown of a major oil distribution pipeline that curtailed the availability of our fuel products in Metro Manila and some parts of Luzon, we have demonstrated the resilience of our business through the collaborative effort of our various teams in employing innovative contingency measures to ensure the safe and reliable supply of fuel to our customers.

The year 2010 also marked the launch of V-Power Diesel in the Philippines, our new premium fuel with revolutionary cleaning technology that promotes smarter mobility by helping motorists get the most from their fuel. We likewise supplied 10% ethanol-blended gasoline (E10) in our Shell stations in major cities in the country, enabling motorists to contribute to a greener environment through its cleaner renewable fuel component.

SciP Country Chairman Edgar Chua

We intensified external engagements with energy concerned citizens from the public, private and non-government organisation sectors on how we can build a more sustainable, New Energy Future together.

As part of the company’s advocacy on CO2 management and smarter mobility, SciP also participated in the first Shell Eco-marathon Asia fuel efficiency competition in Kuala Lumpur, represented by student teams from three Philippine schools (UST, Mapua and Don Bosco) who designed and built the country’s most fuel-efficient, futuristic car prototypes to date, running from over 100 and over 200 kilometres on one litre of fuel.

By the end of 2010, our corporate foundation, Pilipinas Shell Foundation, Inc. (PSFI), has reached more than 3.5 million Filipinos through the social investment programmes it runs throughout the country.

Established in 1982, PSFI was designed to help the disadvantaged to become more productive members of society through programmes that improve their physical, social and economic well-being. Because of the tremendous success of PSFI’s flagship healthcare programme, Movement Against Malaria, in eradicating the deadly disease in five targeted provinces, the programme received additional international funding that enabled its expansion to forty provinces in 2010, making it a national healthcare programme in partnership with the Department of Health and Local Government Units. Moreover, the Movement Against Malaria received local and international recognition in 2010, including a United Nations Millennium Development Goals Warrior Award and an Asian Corporate Social Responsibility Excellence Award.

The following pages of this publication narrate the past year’s milestones of Shell companies in the Philippines in our journey towards powering progress together with the Filipino people. We hope that you will appreciate our continued efforts and be our partner in promoting sustainable development in the country.

Mabuhay tayong lahat!

EDGAR O. CHUA Country Chairman Shell companies in the Philippines

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Sustainable Development in Action 2010 Who we are and how we work

the Malampaya Deepwater Gas-to-Power Project on behalf of the Department of Energy and its partners (Chevron Malampaya LLC and the Philippine National Oil Company – Exploration Corporation). The Malampaya Deep Water Gas-to-Power project is one of the largest and most significant industrial endeavours in Philippine history.

Shell Gas Eastern, Inc. (SGEI) SGEI operates the only refrigerated propane and butane terminal in the Philippines, supplying local and regional customers.

WHO WE ARE AND HOW WE WORK WE ARE PART OF A GLOBAL GROUP OF ENERGY AND PETROCHEMICAL COMPANIES EMPLOYING 93,000 PEOPLE IN MORE THAN 90 COUNTRIES. OUR INNOVATIVE AND COLLABORATIVE APPROACH ENSURES THAT WE WORK WITH OTHERS IN FINDING CREATIVE SOLUTIONS TO HELP TACKLE THE CHALLENGES OF THE NEW ENERGY FUTURE IN ECONOMICALLY, ENVIRONMENTALLY AND SOCIALLY RESPONSIBLE WAYS. OUR BUSINESSES IN THE PHILIPPINES The Shell companies in the Philippines (SciP) include various companies operating in oil and gas exploration, production, oil refining, distribution, sales and business and customer service. SciP started its operations in 1914, and has grown to be one of the Philippines’ largest investors, directly employing 4,000 people nationwide.

Pilipinas Shell Petroleum Corporation (PSPC) PSPC refines, blends, transports and sells a wide range of high quality fuels, lubricants, bitumen and other specialty oil-based products. It operates a 100-thousandbarrels-per-day refinery, 22 oil distribution terminals/depots across the country and close to 1,000 retail stations nationwide.

Shell Gas (LPG) Philippines, Inc. (SGLPI) A fully-owned subsidiary of PSPC, SGLPI operates eight LPG distribution terminals nationwide, providing cost-efficient, reliable and safe LPG energy solutions, tailored to customers’ needs. Liquefied Petroleum Gas (LPG) is a clean-burning fuel with high combustion efficiency, and its portable and flexible usage encourages a wide range of applications, including space and water heating solutions, cooking and air conditioning applications, industrial or agricultural processes and powering vehicles and fleets.

Shell Philippines Exploration, B.V. (SPEX) SPEX is at the forefront of the country’s oil and gas exploration activities, operating

Shell Shared Services Asia, B.V. (SSSA) SSSA provides processing services related to finance, human resources, procurement, customer service and other business needs to Shell companies around the world. SSSA has grown from less than 50 staff in 2004 to over 2,700 employees by the end of 2010.

In 2009, SSSA moved to its new offices in Solaris One in Makati, and has expanded its scope of work to accommodate additional off-shored services. Its sustained growth is a testimony to the Filipino professionals’ worldclass calibre and a significant contribution to the Shell Group’s operational excellence.

Pilipinas Shell Foundation, Inc. (PSFI) PSFI was established in August 1982 as an independent non-profit organisation that implements social investment projects in the country designed to help disadvantaged people become more productive and responsible members of society. PSFI has benefited more than 3.5 million people all over the country through its community development and health care programmes.

Sustainable Development in Action 2010 Key projects

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KEY PROJECTS

ENERGY DEVELOPMENT IS VITAL TO THE COUNTRY’S PROSPERITY AND PROGRESS. AT SHELL, WE HELP POWER AND SUSTAIN PEOPLE’S LIVES

BY SHARING THE BEST OF OUR TECHNOLOGY, SKILLS AND YEARS OF EXPERIENCE AS WE PROVIDE RESPONSIBLE ENERGY SOLUTIONS TODAY AND BEYOND. RECOGNISING THAT EVERYONE HAS A PART TO PLAY IN SECURING A NEW, LOW-CARBON ENERGY FUTURE, WE WORK TO USE ENERGY MORE EFFICIENTLY IN OUR OPERATIONS, WHILE PROVIDING CLEANER ENERGY PRODUCTS FOR ALL OUR CUSTOMERS.

power generation, providing up to 49% of Luzon’s power requirements in 2010.

MALAMPAYA PHASE 2 The largest and most significant industrial investment in the history of the Philippines, Malampaya supplies locally-sourced and cleaner-burning natural gas for electric

PANDACAN OIL DEPOT SOCIAL PERFORMANCE REVIEW As Shell’s largest distribution terminal, the Pandacan Oil Depot in Manila is the main storage facility and distribution

A joint venture of Shell Philippines Exploration B.V. (SPEX) with Chevron Malampaya LLC and the Philippine National Oil Company – Exploration Corporation, Malampaya continues to generate positive results, both in terms of production and revenue contributions to the Philippine Government. The Malampaya joint venture partners contributed over 30 billion pesos to national revenues in 2010, a 10% increase compared to the total government share given in 2009. Around 60% of Malampaya project revenues are remitted to the Philippine Government in forms of revenue share and other taxes.

The next phase of exploration activities is already underway to ensure continued supply of reliable energy to the country.

SPEX carried out appraisal drilling in the Camago and Silangan islands north of Palawan without any environmental or safety incidents.

point of about 50% of the country’s total fuel demand and more than 70% of the company’s lubricants sales. In 2010, the Shell Pandacan Oil Depot was cited as a best-practice distribution site based on a Social Performance (SP) Review led by the Shell Group (Global) SP reviewers. Key highlights from the SP review include the depot’s collaborative work with the locals in designing relevant programmes and social action plans that result in real and identifiable community benefits, as well as in substantial goodwill and trust among key stakeholders. We conduct periodic SP reviews in our sites to assess effectiveness at managing the impacts of our businesses on the communities and societies in which we operate.

V-POWER DIESEL LAUNCH We launched the premium fuel, Shell V-Power Diesel, in the Philippines in August 2010. Engineered to bring out the full driving potential of diesel cars, the development of Shell V-Power Diesel is part of our continuing aim to help our customers get the most from their fuel. The product’s cleaning technology keeps engines in top shape by preventing build-up of deposits in and around the combustion chamber of fuel injection systems. This results in stronger power and consistent engine performance.

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Sustainable Development in Action 2010 Key projects

The New Energy Future Stakeholders’ Forum organised

by Shell and the European Chamber of Commerce of the Philippines brought together various sectors to discuss collaborative ways to deliver more energy with less carbon emissions.

NEW ENERGY FUTURE As part of our ongoing efforts to encourage wider discussions to understand issues of the energy challenge, Pilipinas Shell, partnered with the European Chamber of Commerce of the Philippines (ECCP), in staging a stakeholders forum entitled “The New Energy Future” on October 14, 2010. The event provided a venue for discussions among energy concerned citizens from both the public and private sectors on providing energy solutions to responsibly meet the growing demand for energy in the Philippines. As the world is gearing itself towards a low-carbon energy future, the forum presented to various groups the many ways by which Shell is working towards alternative energy sources, cleaner fossil fuels, renewable energy, and a more sustainable energy scenario moving forward.

The forum also presented an opportunity to present various perspectives on the energy challenge through presentations from government, power, transport, manufacturing, public policy, and financial sectors to establish a clearer understanding of how the pressing energy problems can be met. Among the issues tackled were energy diversity, energy efficiency, energy security, and management of carbon emissions.

Members of the media also took part in a separate workshop, wherein Shell and the Department of Energy dialogued on energy laws and regulations, standards governing the downstream oil industry, factors affecting oil pricing, challenges of the biofuel programme, and other energy market and regulatory topics.

Demonstrating leadership in fuels innovation, Shell V-Power Diesel holds a pedigree of three consecutive wins at the 24-hour Le Mans endurance race. In 2006, Shell V-Power Diesel, in partnership with Audi Sport, made motorsport history as the V-Power Diesel fueled the Audi R10 TDI to victory in Le Mans. Shell and Audi Sport earned the title again in 2007 and in 2008.

SHELL ECO-MARATHON Shell Eco-marathon is Shell’s flagship programme to champion smarter mobility through a car competition to reach the

farthest distance on the least amount of energy and carbon emissions. The unique fuel-efficiency competition challenges student teams from around the world to design, build and test energy-efficient vehicles.

With annual events in Europe and the Americas, Shell Eco-marathon was bought to Asia for the very first time in July 2010 at the Sepang International Circuit in Kuala Lumpur, Malaysia, gathering 80 student teams from 10 countries in the Asia Pacific, including three teams from the Philippines (read more in Empowering the Youth section, page 16).

BIOFUELS UPDATE Our Shell stations in major cities in the country now supply 10% ethanol-blended gasoline (E10), in compliance with the country’s Biofuels Law, thereby enabling motorists to contribute to a greener environment. Ethanol is a cleaner-burning, renewable component that can help reduce global greenhouse gas emissions. The additional oxygen found in ethanol improves combustion and results in a cleaner fuel compared to conventional gasoline. As the first major oil company to offer E10 to 120 retail stations in 2008, we now serve E10 in 588 sites nationwide starting 2009. In addition, for Shell diesoline, we increased the coco methyl ester (CME) component from 1% to 2% as mandated by the Philippine Biofuels Law. CME is an environment-friendly and cleaner-burning diesel additive.

PIPELINE SHUTDOWN RESPONSE The Batangas-Manila petroleum pipeline owned and operated by First Philippine Industrial Corporation (FPIC) was temporarily shut down last October 28, 2010, after a leak was discovered. Running over 115-kilometres from Batangas to Manila, the FPIC pipeline is the largest commercial oil pipeline in the Philippines, which supplies fuel to oil companies, Shell and Chevron.

The pipeline closure severely hampered Shell’s operations, curtailing the availability of fuels in our retail stations and commercial customers within Metro Manila and parts of Luzon. In response to this emergency, PSPC immediately put in place several contingency measures to ensure that we fully provide our customers with a safe and reliable supply of fuel, regardless of the higher costs these measures entailed. While PSPC maintains that the pipeline is still the safest, most reliable and efficient mode of transportation for petroleum products, we sought out innovative solutions to cushion the impact of the pipeline shutdown on the public. These included ship to ship product transfers off Manila Bay, redeployment of barges, installation of new jetties, acquisition of additional lorries, and long haul road transportation from oil distribution depots in Poro, La Union, and Tabangao in Batangas. In addition, PSPC worked with numerous local and national government agencies to help us hurdle the constraints in implementing these back-up arrangements.

Sustainable Development in Action 2010 Personal and process safety

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PERSONAL AND PROCESS SAFETY

Staff of Shell Pandacan Oil Depot in Manila spell out their commitment to Goal Zero during the Safety Day 2010 celebration.

SAFETY IS OUR FOREMOST CONCERN IN ALL OUR ENDEAVOURS. OUR CORE STRENGTH AS A COMPANY IS OUR CULTURE OF SAFETY. PURSUING GOAL ZERO We strive to keep people safe, aiming to operate without fatalities or significant incidents despite the often difficult conditions in which we operate. Our Goal Zero programme captures this aspiration, and further supports the improvement of our safety culture.

Our downstream businesses continue to break Lost Time due to Injury (LTI)-free records, with Distribution, Commercial Fuels and Bitumen achieving seven years of LTI-free operations, five years for Lubes Sales and Marketing, three years for Manufacturing and one million man-hours for the Lubricants Supply Chain in 2010.

Our Tabangao Refinery in Batangas reached top quartile Health, Safety and Environment (HSE) performance in 2010—equivalent to three million manhours of zero Total Recordable Case (TRC) operations and seven million man hours without any LTI record. Tabangao Refinery also marks its fourth consecutive year as Shell Global Manufacturing Process Safety Excellence Awardee, for notable safety practices, including the Hearts and Minds Employee Safety Campaign, visible leadership to minimise hazards and risks, and robust and dynamic safety processes.

Shell Philippines Exploration, B.V. (SPEX) launched the ReFOCUS Safety Campaign in March 2010. Its objective was the safe asset integrity de-bottlenecking of the Malampaya Shallow Water Platform in Palawan from March 9 to June 28, 2010.

The safety milestone was achieved after the Malampaya Phase 2 team accomplished a total of 111 Goal Zero days with no recorded LTI. This effort involved a total of

257 committed and proactive personnel.

In addition, SPEX also managed all safety risks in Malampaya, including asset integrity. Similarly, Shell Shared Services Asia, B.V. (SSSA) in Manila completed 8.6 million safe man hours and 496 Goal Zero days. They also lessened environmental impact by reducing greenhouse gas emissions, electric consumption, and water usage. SSSA was acknowledged for their efforts by the Department of Labour and Employment (DOLE) through an Institutional Award during the 7th Gawad Kaligtasan at Kalusugan (GKK) on October 14, 2010. SSSA is the first business process outsourcing (BPO) company with local presence in the Philippines to be granted the award for its outstanding occupational safety performance.

ROAD SAFETY Shell became part of the Philippine Global Road Safety Partnership (PGRSP), a nonstock, non-profit organisation founded on the basic principles of the Global

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Sustainable Development in Action 2010 Personal and process safety

safety. Shell has been an active member of PGRSP since its inception.

SAFETY FROM SUN UP TO SUN DOWN: TABANGAO’S “I COMMIT” SAFETY PROGRAMME The Refinery Leadership Team greeted staff and contractors at the Refinery gate, expressing the words “Isapuso at Isabuhay” as they handed out “I Commit Cards” as part of the global Shell Safety Day celebration on June 8, 2010. The “I Commit” campaign helped encourage Tabangao Refinery personnel to link their everyday activities to key business priorities such as product quality, reliability, cost, margin and energy-efficiency without compromising on safety. Heeding the Safety Day theme to “Do the Right Thing” every time, all the time, everyone in the Refinery recited the pledge, “As I enter this gate to do my work, I commit to—do my work safely, spot problems and act on solving them, and eliminate wasteful ways. I will pass this gate again at the end of my work to go home safely, confident that I have done my best to contribute in making Tabangao Refinery safe, reliable and productive.”

Shell also launched the Road Safety Camp for Children on May 20, 2010 in Batangas City. The event, entitled “Be Smart! Be Prepared! Be Safe!”, is an annual activity which brings together all participating schools in one venue to create public awareness on road safety while educating children on how to become smart road users. In 2010, 300 children from 12 participating schools participated in the event, where they took part in various activities that taught the importance of road signs and signals, commuter and passenger safety, bike and motorcycle safety, general road conduct, basic concepts in defensive driving, and Batangas City traffic rules and regulations.

The road safety programme is being implemented in Pandacan and Batangas and has benefited a total of 5,186 students

Road Safety Partnership that brings together government agencies, business entities and civil society to a common task of addressing global and local road safety issues. Through the partnership, Shell launched the Road Safety Flash Card Project, aimed at promoting road safety consciousness among children by providing teaching materials on pedestrian safety, and basic road traffic rules and regulations. The 6-month project will consist of training public school teachers from 10 public schools in District 6 of Manila City on the use of the road safety flash cards.

PGRSP was formed in 2009 in response to the rise of crash-related death and injury in the country, adopting a multi-sectoral approach using global best practices in addressing key risk factors that affect road The Road Safety Camp for Children educates youngsters on how to stay safe on the road.

Sustainable Development in Action 2010 Personal and process safety

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from 20 participating schools during the year 2010 alone.

Shell likewise continued to sponsor defensive driving courses for partners and customers in 2010. Twenty-six Shell Card members were taught proper road behaviours and given a refresher on Philippine road rules and regulations. The seminars aim to reinforce defensive driving techniques and emphasise that majority of accidents and road hazards can be avoided with proper training.

FIRE SAFETY On March 1, 2010, Shell observed Fire Prevention month in partnership with the Bureau of Fire Protection (BFP). With this year’s theme on “Sustaining Fire Prevention Through Active Community Participation”, the event included a Memorandum of Our Pandacan Oil Depot in Manila conducts regular fire drills together with the Bureau of Fire Protection.

community relations and performance.

The winners shared their accomplishments and contributions to the community in a roundtable discussion with media.

As part of the month’s celebration, Shell, together with the Batangas Women’s Network, organised a Home Safety Seminar for Batangas Women to help housewives keep their homes safe for their loved ones. During the seminar, the women were taught LPG Product Knowledge and Safety Tips, the 7-Point Safety Check, and how to properly use a fire extinguisher.

Agreement signing between PSPC and the BFP on fire prevention initiatives, a national fire brigade competition, poster making contest, essay writing contest, and a training seminar for fire safety enforcers.

On October 8, 2010, Shell and the Safety Organisation of the Philippines (SOPI) also gave recognition to the noble service of courageous firefighters who put their lives on the line to protect people and property from fires, through the “Top Ten Outstanding Pilipino Firefighters” awards.

The awardees where chosen based on their moral values, interpersonal and

Shell also conducted a half-day Liquefied Petroleum Gas (LPG) Product Knowledge and Safety Seminar for residents in Tondo, Manila. The seminar gave participants knowledge and basic skills in responding to LPG emergencies at home. The seminar highlights include basic LPG tank knowledge and proper usage, as well as a crash course on emergency procedures in the event of a leak or fire. Safety features of Shellane LPG tanks were also highlighted, wherein participants learned about Shellane’s trademark safety cap, which protects the valve from leaks, dirt and tampering.

To date, our LPG safety seminars have benefited more than 150,000 participants nationwide since its initial launch a decade ago.

SAFETY AND EMERGENCY PREPAREDNESS IN THE COMMUNITY

The Malampaya Foundation, Inc. (MFI) organised the Neighbourhood Emergency Services Team (NEST) Training Programme for the different barangays (small local government units) in selected areas of Palawan, Batangas, and Oriental Mindoro.

The programme organises communities and builds their skills in providing emergency assistance. The programme also teaches participants how to identify potential acts of danger, helps the community during times of catastrophes and, most importantly, how to save lives.

NEST requires volunteers to undergo 40 training hours in emergency preparedness, fire protection, emergency medical operations, search and rescue, emergency psychology, team organisation, earthquake safety, flood safety, health surveillance and reporting, and disaster relief rehabilitation.

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Sustainable Development in Action 2010 Personal and process safety

RETAIL OPERATIONS SAFETY To further improve safety in our operations and promote Goal Zero, we completed the Zero Climbing on Tanker Top (ZCOTT) project in the first half of 2010. The 100year old practice of climbing tanker tops was prohibited on all deliveries to retailers from Shell distribution terminals around the country.

MALAMPAYA ONSHORE GAS PLANT: EMBEDDING THE LIFE-SAVING RULES The Malamplaya Onshore Gas Plant (MOGP) marked nine successful years of Goal Zero on September 27, 2010. This notable safety milestone was achieved despite numerous operational challenges. To recognise this safety milestone, a prestigious Shell Safety Award was bestowed to the MOGP team by Shell Upstream International Asia Vice President for Production Alison Goligher. The ‘Embedding the Life-Saving Rules’ campaign contributed to this safety achievement by encouraging proactive safety discussions among the site leaders of MOGP, the core crew as well as the contractors.

A total of 931 community volunteers have participated in the training since the programme started in 2007.

Another similar programme introduced in 2000 is the Barangay Emergency Response Programme (BERP), which remains active in upgrading the knowledge, skills and capacities of the communities surrounding Shell worksites. BERP introduces training in first aid, basic disaster response, and emergency response planning.

We also launched the Gawad Kalinga (Give Care) Emergency Response Centre in Baseco, Manila in 2010. Built on the banks of the Pasig River in Tondo, Manila, Baseco is known to be a disaster-prone area. The place is notorious for calamities such as floods and fires that frequently destroy property and endanger lives.

The construction of a multi-storey building with roof deck in Baseco will serve as an emergency response, health and evacuation centre for all the residents.

Green engineering concepts will be applied to create an energy-efficient structure.

Among the concepts that will be employed in the Response Centre are natural lighting, ventilation techniques and rainwater capture.

Training of youth volunteers in emergency response will also ensure that volunteers are adequately equipped to handle emergencies.

The 12 Life-Saving Rules Our 12 Life-Saving Rules are the next step in our Goal Zero Journey. They are not new.

Most people comply with them every day – but there are still breaches taking place. The Life-Saving Rules set out clear and simple “dos and don’ts” covering activities with the highest potential safety risk. They help to make sure that rules are followed and people are protected.

1.

Work with a valid work permit when required

7.

Do not walk under a suspended load

2.

Conduct gas tests when required

8.

Do not smoke outside designated smoking areas

3.

Verify isolation before work begins and use the specified life protecting equipment

9.

No alcohol or drugs while working or driving

4.

Obtain authorisation before entering a confined space

5.

Obtain authorisation before overriding or disabling safety critical equipment

11. Wear your seat belt

6.

Protect yourself against a fall when working at height

12. Follow prescribed Journey Management Plan

10. While driving, do not use your phone and do not exceed speed limits

Sustainable Development in Action 2010 Environmental impacts

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ENVIRONMENTAL IMPACTS created as the business sector’s contribution to addressing the impact of global warming by reducing carbon emissions and air pollutants from vehicle fleets.

TREATING OUR WATER DISCHARGES In December 2010, Shell was conferred with the Lakan ng Lawa Award, a citation given by the Laguna Lake Development Authority (LLDA) to socially responsible companies operating in the Laguna Lake Region. Shell attained a Blue Rating for the consistent compliance and exemplary performance in environmental protection of its Pandacan Oil Depot, which is equipped with facilities to separate hydrocarbon fluids from its discharges to meet regulatory specifications at all times. The Depot’s Wastewater Treatment System features an ultra-filtration system as the final water treatment that even exceeds the LLDA effluent standards.

Shell receives the Laguna Lake Development Authority (LLDA) Lakan ng Lawa Award for exemplary environmental performance of its Pandacan Oil Depot

WE DELIVER ENERGY IN A WAY THAT CONSIDERS THE ENVIRONMENT. ADVANCED TECHNOLOGY, NEW WAYS OF OPERATING AND CONTINUING PARTNERSHIPS ARE HELPING US TO MANAGE OUR ENVIRONMENTAL IMPACT AS WE CONTRIBUTE TO MEETING THE COUNTRY’S GROWING ENERGY NEEDS. MANAGING OIL SPILLS AND EMISSIONS We continued to carry out oil spill drills in Shell locations to ensure proper management and effective response of our personnel in the event of an oil spill.

Our comprehensive training programmes in occupational standards and emergency preparedness demonstrate our commitment to safeguard the environment and the community. In November 2010, we conducted a major oil spill exercise (Tier 3 or largest spill level), together with other industry players and local authorities as a way of sharing expertise and best practices in oil spill management.

Shell also required all single-hulled vessels that it uses to be converted into double hulls by the end of 2010. Double-hulled vessels provide better cargo integrity and reduces the risk of spills during collision.

During the year, 11 time-chartered vessels, seven tankers and four barges have been converted into double hulls.

In 2010, Shell Philippines Exploration, B.V. (SPEX) completed the Second Engine Change-out at the Malampaya Onshore Gas Plant in Batangas, aimed at lowering its carbon monoxide (CO) emissions compared to existing regulatory standards for emissions set by the Department of Environment and Natural Resources. SPEX also successfully completed the structural changes of its Flash Gas Compressors at the Malampaya Shallow Water Platform to reduce flaring of gas and replaced the Sewage Treatment Plant to further ensure the reliability of the facility.

Our Commercial business partnered with the Philippine Business for the Environment (PBE) and Clean Air Initiatives-Asia (CAIAsia) to launch the Clean Fleet or Eco-Fleet Programme for selected industrial customers and hauliers. The Eco-Fleet Programme is part of a global initiative led by the United Nations Environment Programme that was

SHELL ENERGYSAVE SITES: REVOLUTIONISING ENERGY USE As the world’s largest fuel retailer, we aim to lead the way in making widespread improvements to our global network of service stations that will deliver environmental benefits and reduce the carbon footprint of our operations.

SPEX ENGINEER RECEIVES RECOGNITION FOR POLLUTION CONTROL Environment Engineer Dar Guamos was awarded as one of the 2010 Outstanding Pollution Control Officers by the Pollution Control Association of the Philippines, Inc. (PCAPI) Region 4. He is one of only eight awardees chosen from 3,000 nominees in the region.

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Sustainable Development in Action 2010 Environmental impacts

Since the EnergySave Sites programme (Project Greensite) was rolled out in the Philippines in 44 Shell retail stations in 2009, we completed an additional 116 EnergySave Sites (ESS) nationwide in 2010, lowering energy consumption in these sites by on average more than 25%.

Energy consumption is reduced in each ESS through a combination of on-site hardware investments and operational changes, particularly in delivering more efficient lighting and ventilation systems.

ESS use under-canopy LED lighting with dimming functionality; canopy signage with LED lighting; energy-efficient shop lighting; washrooms and storage rooms equipped with motion detector light sensors; closeddoor drinks chillers instead of more energy intensive open-deck drinks chillers; and more energy-efficient ventilation and airconditioning systems.

FIRST GREEN OFFICE INTERIORS AWARDEE Our Shell Shared Services Asia, B.V. (SSSA) Solaris One office in Makati became the first recipient of the Leadership in Energy and Environment Design (LEED®) Silver Certification in Commericial Interiors.

LEED is an internationally recognised green building certification system, providing third-party verification that a building or community was designed and built using strategies intended to improve performance in metrics such as energy savings and carbon dioxide emissions reduction. The SSSA Solaris One office features both stateof-the-art and environmentally conscious facilities that led to its achievement of Silver Certification.

We also joined the rest of the world in switching off lights in observance of Earth Hour 2010. As a testament of our commitment to help fight global warming, we turned off the red bar canopy lights

in all our retail stations nationwide, billboard lights and area lights in Shell offices, refinery and distribution terminals. During the switch-off event, Sikat, the Philippines’ second solar car entry to the World Solar Car Challenge, was exhibited. The sun-powered vehicle supported by Pilipinas Shell Petroleum Corporation demonstrated not only Filipino ingenuity but also the viability of alternative energy for smarter mobility.

WASTE MANAGEMENT We celebrated the 40th global Earth Day event together with our partners, the Philippine Business for the Environment (PBE) and the Earth Day Network Philippines.

Shell backed the 2010 PBE Recyclables Collection Event that aimed to promote the three ‘Rs’ (reduce, reuse and recycle) by designating recyclables collection points all over the country.

Shell likewise helped in launching Earth Day’s 10 Million Movement, an advocacy campaign which aims to gather 10 million pledges from Filipinos to take action for Mother Earth through reversing environmental degradation. Heeding the call for commitments, Shell staff made pledges online, including saving electricity, conserving water, and using reusable grocery bags.

On April 2010, Shell re-launched the Bawas Basura sa Barangay (Reduce Waste in the Community) or the Triple B programme in Pandacan. As part of the livelihood programme, a month-long environmental contest entitled, “Basura Mo, Kabuhayan Ko (Your Trash, My Livelihood)”was held in several barangays to increase awareness and foster participation of residents in Triple B activities. The project also encouraged residents to segregate their waste by selling their recyclables to Triple B Biomen, who

perform recyclable collection, hauling, sorting, weighing and selling to big recyclers and/or junk shops.

PROTECTING WATERSHEDS AND COASTAL AREAS To remind our stakeholders on the importance of protecting the environment, we held a bike riding activity for the La Mesa Watershed, Metro Manila’s major water reservoir. Shell matched the participation fees paid by the bikers with a donation for the protection of the watershed.

As part of the International Coastal Clean-Up Day celebrations, Shell Tabangao Refinery and other Shell staff joined Reef Check Philippines for a coastal clean-up and coral watch at the Acacia Dive Resort at Mabini, Batangas.

Malampaya Foundation, Inc., together with the Batangas local government, supported the Verde Island Passage Project implemented by the Batangas Coastal Resources Management Foundation. Verde Island is a popular domestic sea route connecting Batangas, Marinduque, Mindoro and Romblon, and is regarded by marine conservationists as “The centre of the centre of Marine Shorefish Biodiversity”. In 2010, 36 volunteercommunity divers from Batangas were trained on conserving marine biodiversity, coral reef installation and underwater clean-up in the area.

In July, due to rough sea conditions at the height of typhoon Basyang, an Indonesian firm barge loaded with 8,000 metric tons of unburnt bituminous coal from Indonesia ran aground on a reef in Nasugbu, Batangas.

The Batangas community divers were among

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EMILIA THE BIOMAN the first to volunteer for the coal spill cleanup operations, receiving a special citation from the Provincial Board of Batangas.

We also continued to support the Kapit Bisig Para sa Ilog Pasig (Linking Arms for the Pasig River), a river rehabilitation project jointly led by the Department of Environment and Natural Resources, through the Pasig River Rehabilitation Commission and the ABS-CBN Foundation.

Shell has allotted five million pesos for 2010 to be used for building and beautification of easements along the Estero de Paco, one of the main estuaries which leads into Pasig River, as well as for the rehabilitation of the Paco Market, considered as a major contributor of pollution to the Pasig River.

LIGHTING EFFICIENCY Central to our business strategy is providing responsible energy solutions in light of growing energy demand and dwindling energy supply. In line with this, we have partnered with both the private and public sectors to promote sustainable energy and efficient energy use as a way to address 21st century energy challenges and help ensure energy access for Filipinos. One such partnership is between us and Philips Electronics and Lighting, Inc. Last December, we launched the Hospicio de San Jose Lighting Project, which involved replacing more than 1,600 lamps in the centuries-old home for orphans, abandoned children and elderly people, situated near the Shell Pandacan Oil Depot in Manila. The energy-efficiency project will enable Hospicio de San Jose to save up to six million pesos in just five years.

Hope for the Pasig River. Shell supports the mission of rehabilitating the Pasig River and restoring it to its old glory.

It’s been seven years since Emilia Enriquez became a Bioman for the Bawas Basura sa Barangay (Triple B) project. Triple B Biomen collect waste materials from households and establishments and exchange these for profit with collectors of recyclables. The income Emilia has been earning from Triple B’s recyclables collection has helped a great deal in augmenting her budget for food and the school allowance of her children.

Shell designed Triple B in 2001 to manage solid waste in its worksites and surrounding communities. The Triple B programme in Pandacan, Manila, where Shell’s largest oil distribution terminal is located, is regarded as among the most effective community solid waste management programmes in the City of Manila today.

Through application of waste segregation schemes and the establishment of a local waste management system, Triple B is able to help reduce the waste generated by communities.

Triple B has also established a materials recovery facility for the barangays and regularly conducts technical and capacity-building trainings as well as information and education campaigns. The programme offers Biomen like Emilia, who is now the Assistant Operations Manager of Triple B, the opportunity to earn while helping to keep their community clean and green. As of July 2010, Triple B’s gross sales reached approximately Php100,000.

Forty percent of the sales covers expenses, salaries and allowances of the Triple B project management staff, while the other 40 percent is used as revolving fund, and the remaining 20 percent is allotted for the barangays, which is then used for other community projects.

CONSERVING BIODIVERSITY Shell is a long time supporter of the Philippine Eagle Foundation (PEF) and has adopted two Philippine Eagles --- Pag-Asa and Magiting. Shell annually provides support to the PEF to protect and bring back the dwindling population of the Philippine Eagle in the country. 2010 marked the conclusion of Shell’s Project Kalumbata for information, education and communication on conserving the Philippine eagle. Project Kalumbata was implemented in communities within and around the Mt. Kitanglad Natural Park in Bukidnon.

NEW ENERGY FUTURE ADVOCACY Shell recognises that effective management of energy use requires all sectors to work together. We do our part by helping our partners and customers manage their own emissions, as we manage our own.

In 2010, we hosted the first roundtable meeting towards the development of the National Carbon Capture and Storage (CCS) Capacity-Building Programme in the country, together with members of the International Energy Agency, DENR, DOST, University of the Philippines and the Asian Development Bank. CCS is one of the valuable technologies in the management of carbon emissions. During the exploratory meeting, Shell presented its response to the energy challenge, in helping meet the world’s growing energy needs in economically, environmentally and

socially responsible ways. The participants also identified potential carbon dioxide storage areas in the country, and discussed recommendations for implementing a capacitybuilding programme in the Philippines.

Shell partnered with the European Chamber of Commerce of the Philippines (ECCP) in 2010 for the 1st Philippine Energy Efficiency Forum. The forum, themed “Enhancing Competitiveness through Energy Efficiency,” convened key decision makers and business leaders from the energy and other industrial sectors, and enlisted commitments to implement energy-efficient programmes at the enterprise level. In this event, we shared how our global operations were able to reduce greenhouse gas emissions by 30% based on the 1990 baseline through increased efficiency in our operations.

We joined the observation of the National Energy Consciousness Month in December 2010, spearheaded by the Department of Energy (DOE). In this month-long celebration, Shell launched the second run of the Essay Writing Contest for college students with the theme, “Energy Access for more: How Can the Youth Be Involved in Solving the Country’s Energy Challenge?”(read more in Empowering the Youth section, page 16) and an on-the-spot poster making contest for high school students.

During the celebration, Shell also showed films on smarter mobility, prepared an exhibit, energy talk and trivia game for high school student participants and their teachers.

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Sustainable Development in Action 2010 Shell in society

SHELL IN SOCIETY

CLOSER TO ACHIEVING A MALARIAFREE PHILIPPINES Our battle against malaria began twelve years ago in Palawan, the site of our Malampaya Deepwater Gas-toPower project. Being a good neighbour demanded that we help the local community address this major health problem. In partnership with the local government of Palawan, we launched the Kilusan Ligtas Malaria programme, which helped to bring down malaria cases in Palawan by 76% (from 42,394 to 10,371), and deaths due to malaria by 93% (from 85 to 6) from the year 2000 up to 2010. We have since gone beyond helping our immediate neighbour when The Global Fund to Fight AIDS, Tuberculosis and Malaria (Global Fund) granted us additional funding in 2006 to implement the programme, renamed Movement Against Malaria (MAM), to five of the most malaria-endemic provinces in the country—Apayao, Quirino, Sulu, Tawi-Tawi and Palawan.

PHILIPPINES: MALARIA MORBIDITY

NUMBER OF MALARIA CASES

AIMING TO CONTINUE AS A GOOD NEIGHBOUR TO COMMUNITIES WHERE WE OPERATE, WE HAVE EXPANDED OUR EXISTING SOCIAL DEVELOPMENT PROJECTS AND PARTNERED WITH MORE INSTITUTIONS. THESE EFFORTS HAVE NOT GONE UNNOTICED AS WE REAPED INTERNATIONAL RECOGNITION AND AWARDS.

BY INVESTING IN, INITIATING, AND SUPPORTING SOCIAL PROJECTS THAT DIRECTLY BENEFIT LOCAL COMMUNITIES AND ADDRESS ISSUES LINKED TO OUR BUSINESS, WE ARE CONTRIBUTING TO NATIONBUILDING IN REAL AND MEASURABLE TERMS.

40000 35000 30000 25000 20000 15000 10000 5000 0 2007

2008

2009

2010

2011

2012

2013

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REAPING THE REWARDS 2010 was a banner year for the Movement Against Malaria (MAM) programme, receiving a grand slam of awards from five reputable award-giving bodies. These awards are tokens of recognition to the countless individuals who work on the ground, selflessly assisting in the noble work of empowering communities to fight the scourge of malaria and have a better quality of life.

The United Nations Millennium Campaign, Probe Media Foundation, and Kodak Philippines honoured Shell as one of the country’s seven “MDG Warriors” for the substantial contributions of MAM in helping the country move towards achieving the goal of eliminating malaria. This was followed by the regional recognition of MAM in the 8th Asian Corporate Social Responsibility (CSR) Awards, Asia’s premier awards programme on CSR, where we received an Excellence Award in the Concern for Health category from among 141 entries representing 99 companies from 15 countries. MAM was likewise recognised by the International Association of Business Communicators with a Quill Award of Merit under the Communication Management -- Economic, Social and Environmental Development Category, and by the Public Relations Society of the Philippines with an Anvil Excellence Award under the Public Relations Programmes on a Sustained Basis – Health Category.

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food security, while providing a sustainable source of income. These Shell-GK BayanAnihan (Community Harvest) farms enable GK communities to either sell their produce to earn money for the maintenance of their villages and farm infrastructures or for their own families’ consumption, thus making them self-sufficient. Since 2009 until the end of 2010, a total of 14,115 kg of produce have been harvested from the 23 Shell-GK Bayan-Anihan farms that have been established in the Bicol region.

Women residents of Gawad Kalinga (GK) Village in Abanggayon, Camarines Sur work hand in hand to maintain their Shell-GK Bayan-Anihan backyard vegetable farm.

In January 2010, an additional grant of US $31.4 million from the Global Fund transformed the MAM programme into a nationwide campaign. This has allowed us to expand MAM’s coverage from 5 to 40 malaria-endemic provinces, thereby accelerating the achievement of the United Nations Millennium Development Goal (MDG) of combating malaria in the countryand bringing the Philippines closer to reducing the malaria morbidity and mortality rate by 70% from 2006 to 2014.

Recognising the importance of building a wide stakeholder network, we continue to strengthen our partnerships with government and private institutions to sustain the movement to eradicate the deadly disease.

We also continue to address the health needs of our Pandacan neighbours through Programang Pangkalusugan ng mga Mamamayang Nagkakaisa sa Pandacan (PAMANA). An integrated health programme, PAMANA offers a variety of health-related services. Last September, PAMANA health volunteers attended a three-day seminar to upgrade their skills at the Shell Training Centre in Pillila, Rizal.

Trainers from the Manila Health Department conducted the seminar. More than 2,000 Pandacan residents have already benefited from the programme since 2005.

LOCAL DEVELOPMENT Our partnership with Gawad Kalinga (Give Care), a movement towards poverty alleviation and nation-building, has gone a long way. We have set up backyard vegetable farms in Gawad Kalinga or GK villages in the province of Camarines in the Bicol region to help communities attain

Many, if not all, of our efforts to be good to our neighbours would be impossible without our employees and business partners’ strong and vibrant spirit of volunteerism. Last March 11, our staff, together with our business partners, implemented the first ever Farm Build Activity in Shell-GK Bayan Anihan sites in Camarines Sur. Fifty volunteers composed of Shell staff, dealers, customers, contractors as well community residents, faculty and students of the Bicol State University, planted vegetables and constructed farm infrastructure facilities.

We also staged an art sale from November 20-27, 2010 for the benefit of GK, which celebrated its seventh year of fighting poverty in the country. The Shell-sponsored GK Art Sale, entitled “The Gift of Art”, showcased the masterpieces of renowned Filipino artists who are past winners of

Shell sponsored an art sale for Gawad Kalinga (GK) entitled “The Gift of Art” to raise funds for GK’s Centre for Social Innovation, which will provide opportunities for GK villagers to become entrepreneurs.

Photo shows Filipino sculptor Ral Arrogante (centre) and his Gift of Art sculpture donation, together with (from left) Shell Sustainable Development Manager Ronald Suarez and GK Founder Tony Meloto.

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Sustainable Development in Action 2010 Shell in society

including Pandacan, Palawan, Batangas and Mindoro. Aided by a computer courseware, our Specialised English Enhancement Course for High School and Elementary Teachers (SPEECH) is a month-long English proficiency training programme geared towards improving the four macro skills of listening, speaking, reading and writing. This year alone, there were a total of 227 SPEECH graduates. Last July 2, 2010, we inaugurated a brand new SPEECH lab at Western Philippines University (WPU) in the Municipality of Aborlan, Palawan, site of our Malampaya Deepwater Gas-toPower Project. Equipped with 24 units of SPEECH equipment, the lab was made possible with the help of Shell Philippines Exploration partners KUFPEC Philippines Onshore, B.V. and South China Resources.

A project of the Panahiang Pangkabuhayan sa Pandacan or Triple P livelihood programme for the residents near our Shell Pandacan Oil Depot is the recycling of Shell used tarpaulin streamers and banners into canvass bags. Triple P’s beneficiaries, most of whom are mothers, sew round rags, two-ply mats, uniforms and other cloth products, which are sold and supplied to nearby business establishments.

Shell’s long-running arts programme, the Shell National Students Art Competition, and who support GK’s vision of building empowered communities. The art sale, held at the SM Megamall in Mandaluyong City, was staged in cooperation with SM Supermalls. Proceeds of the art sale went to GK’s project of setting up a Centre for Social Innovation (CSI) in Bulacan, which aims to provide opportunities for GK villagers to become entrepreneurs.

By providing livelihood training programmes to our neighbours, we help them become economically self-reliant, and thus, uplift the quality of their lives.

One such programme is Triple P or the Panahiang Pangkabuhayan sa Pandacan (Pandacan Livelihood Sewing Centre). In partnership with the Department of Labour and Employment (DOLE), we have provided training on Industrial Sewing Machine Operations to residents of Pandacan who live near our Shell Pandacan Oil Depot in Manila. To help them become successful entrepreneurs, we also conducted a two-day seminar-workshop on business planning, marketing, finance and production.

Good teachers are essential to achieving quality education. To help teachers improve and succeed in the global world, we offered English proficiency and teaching seminars for public elementary and high school teachers in schools near areas where we operate,

Our Advance Course on Competitive English for Teachers (ACCENT) is similar to SPEECH, but instead of setting up computer labouratories, we utilise Lyceum of the Philippines-Batangas’ existing labouratory to train teachers. A total of 78 teachers from Batangas have been trained from 2009 to 2010. In Palawan, we utilise laptops as training platforms, wherein graduates of the programme train other teachers using the laptops issued to them. In Mindoro, we operate a 20-computer labouratory housed in the Calapan City capitol complex, in collaboration with the government and the private sector.

The SPEECH programme utilises computer-assisted language learning to help teachers improve their English proficiency.

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EMPOWERING THE YOUTH WE ARE PASSIONATE ABOUT EDUCATION. WE ARE CONVINCED THAT IT IS KEY TO THE INTEGRAL DEVELOPMENT OF THE YOUTH. FUELLING THE FUTURE THROUGH LEARNING We believe that the country’s most important resource is the youth. Thus, through our Gas Mo, Bukas Ko (Your Gas, My Future) or GMBK educational programme, we continue to offer technicalvocational scholarships to Shell service station staff (GMBK I), public transport sector dependents (GMBK II), and dependents of contracted workers (GMBK III) nationwide to improve their employment opportunities. 847 GMBK scholars have graduated since the programme was piloted in 2005.

issues, but also to identify possible solutions to these problems. This programme, which runs from June 2009 to March 2012, is being implemented in partnership with the Sagip Pasig Movement and the Polytechnic University of the Philippines.

CULTIVATING NATIONAL CULTURE THROUGH THE ARTS Unlike the sciences, the arts are not considered as practical pursuits that serve immediate purposes. However, we believe that cultivating the arts is equally important as it not only elevates human existence by promoting creativity and personal expression but also promotes national culture and heritage. In support of this thrust, we continue to stage the annual Shell National Students Art Competition (NSAC), which celebrated its 43rd year in 2010. The long-running art competition for the youth has produced many of the

Ace Aquino shows his winning sculpture “Childhood Memories” during the 43rd Shell National Students Art Competition (NSAC) awarding ceremony and exhibition of winning entries at the Ayala Museum.

During the latter part of 2010, we launched GMBK IV with a new scholarship programme called the Driver Incentive and Rewards Programme or DRIVE, for dependents of lorry drivers of our contracted hauliers. There were 16 scholars who qualified for the first batch of DRIVE scholars. Courses offered were Basic Computer and Hardware Configuration, Call Centre Training, Bookkeeping, Food and Beverage Servicing, Welding, and Automotive and Consumer Electronics.

The programme also provides on-the-job training with Shell’s partner industries like Keppel, Panasonic, Jollibee, and Toyota.

Since positive work values are as important as the acquisition of knowledge and skills, all our GMBK scholars, as well as beneficiaries of our livelihood training programmes undergo a three-day, valuesformation and work ethic workshop under our Leadership Enhancement and Attitude Development (LEAD) programme.

To further promote environmental stewardship among the youth, we continued to support the Shell Green Scholars programme, whose environmentbased scholarship is the first in the country.

The students are especially being trained not only to learn various environmental

LEADERSHIP ENHANCEMENT AND ATTITUDE DEVELOPMENT Since 1982, Pilipinas Shell Foundation, Inc. (PSFI) has been conducting the Leadership Enhancement and Attitude Development (LEAD) workshop for all its beneficiaries including out-of-school youths, teachers, housewives, farmers, and health workers. LEAD is a three-day psycho-social workshop conducted to imbibe beneficiaries with the right values and work ethic to help each of them optimise the benefits of the PSFI programme they have been selected to participate in. Beneficiaries are expected to embody a more positive outlook in life following attendance to the LEAD workshop.

Participants of the LEAD workshop learn about rediscovering themselves, finding their purpose in life, appreciating what is given to them, valuing their family and friends and making the most of the opportunity presented to them.

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Sustainable Development in Action 2010 Empowering the youth

As part of our advocacy to promote innovation and technology leadership in the country by making science and technology education accessible to deserving young Filipinos, we signed a Memorandum of Agreement with the De La Salle University (DLSU)-Manila Science Foundation on March 5 to donate Php 1.5 million for the benefit of the DLSU Mechanical Engineering Department.

Abraham Guiab (centre) of the University of Asia and the Pacific receives the grand prize for the Energy Essay Writing Contest for College Students for his essay “Smart Consumption”. With him is (from left) Manila Bulletin Senior Reporter Myrna Velasco, Shell companies in the Philippines Country Chairman Edgar Chua, Department of Energy Secretary Jose Rene Almendras and Energy Council of the Philippines Executive Director Dr. Francisco Viray.

country’s renowned local and international artists today. The awarding of winners for the 43rd NSAC was held on October 13, 2010, at the Ayala Museum in Makati, where the winning works of students were also exhibited for two weeks. The NSAC has launched the career of many young artists through public recognition, as well as promoting their works through the production of a Buyers’ Guide and organising a public exhibit of the NSAC finalists and winners’ artworks. This year’s competition received 1,660 entries from all over the country.

PROMOTING ENERGY CONSCIOUSNESS AMONG THE YOUTH Believing that it is now the youth’s turn to think of ways by which they can inculcate responsible energy use and promote the development of sustainable energy sources, we launched the Essay Writing Contest for College Students on March 22, 2010 with the theme, “The Role of the Youth in Tackling the Challenges of the New Energy Future.” The grand winner was awarded by programme partners such as the Department of Energy and senior energy journalists, and nominated to be a Youth Representative in an energy conference overseas.

SHELL ECO-MARATHON ASIA – INSPIRING YOUNG ENGINEERS TO DEVELOP NEW APPROACHES TO SMARTER MOBILITY Mapua Institute of Technology’s prototype car Agimat (in photo above) logged a fuel consumption of 241km/l, making it the most fuel-efficient car in the Philippines.

The Mapua team bagged the first runner up Safety Award in Shell Eco-marathon Asia’s Off-Track Awards. University of Santo Tomas, the oldest existing university in Asia, fielded the prototype car Tiger 400, in commemoration of the school’s Quadricentennial celebration in 2011. It attained a fuel consumption of 198 km/l. Don Bosco Technical College’s prototype car Grigio logged 141 km/l. The Don Bosco team was also given a special award for most improved safety compliance.

Still in line with our commitment to foster the development of technology for greater energy efficiency, we introduced the Shell Eco-marathon to top Philippine engineering schools in 2010. Held in Europe for over 25 years, Shell Eco-marathon is Shell’s landmark campaign on fuel-efficiency which debuted in Asia in July 2010.

A unique car marathon that measures distance rather than speed, Shell Ecomarathon presents an opportunity for Filipino engineering students to engage in a friendly competition with their Asian counterparts while utilising their capabilities, talents and resources to create an innovative, fuel-efficient vehicle and promote the message of fuel-efficiency and smarter mobility solutions. The first

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Philippine delegation to Shell Eco-marathon consisted of engineering students from the Don Bosco Technical College, Mapua Institute of Technology, and the University of Santo Tomas. The Team Philippines Shell Eco-marathon campaign was recognised by the International Association of Business Communicators (IABC) with a Philippine Quill Award of Excellence in 2010 under the Communication Management – Special Events Category for effectively engaging the Filipino youth on the challenge of fuelefficiency.

81 teams from 10 countries participated in the inaugural Shell Eco-marathon Asia fuel-efficiency car competition.

SHAPING YOUNG MINDS THROUGH CHESS Wesley So is the Philippines’ youngest chess grand master, achieving the title at the age of 14. He earned the distinction of being the 8th youngest person in the world to achieve the Grandmaster title in the history of chess. A product of the Shell National Youth Active Chess Championship or Shell Active Chess, he first joined the Shell chess kiddies tournament at the age of nine, eventually clinching the Kiddies division crown for those aged 14-and-under at the age of 11, and consequently the Juniors division for those aged 20-and-under at the age of 13.

Our efforts to empower the youth through programmes that instil energy consciousness and responsibility; improve science facilities; promote creativity; encourage the invention of new energyefficient technologies; and provide scholarship programmes not only manifest our support to Shell companies in the Philippines’ sustainable development programmes but also affirm our commitment to empowering the youth.

The Shell National Youth Active Chess Championship does not only build the playing skills of the youth but instills in them the values of discipline, diligence, sportsmanship and a sense of fair play.

One of the long-running youth programmes of Shell in the Philippines, the Shell Active Chess celebrated its 18th year in 2010. The grassroots programme is held in strategically located sites nationwide and promotes excellence and competitiveness among the youth through the global mental sport. To date, the Shell Active Chess has reached tens of thousands of youngsters and produced many of the country’s grand masters, international masters, FIDE masters and national masters in chess.

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Communications Department Shell companies in the Philippines Shell House 156 Valero St., Salcedo Village 1227 Makati City, Philippines

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