WORKING IN PARTNERSHIP TO IMPROVE COMMUNITY ENGAGEMENT: A CASE STUDY FROM THE PROPOSED PETERHEAD CCS PROJECT

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WORKING IN PARTNERSHIP TO IMPROVE COMMUNITY ENGAGEMENT: A CASE STUDY FROM THE PROPOSED PETERHEAD CCS PROJECT SCCS Conference 28 October, 2015 Denise Horan Stakeholder Engagement & Communications Manager, Peterhead CCS Project Kirsty Anderson Principal Manager Public Engagement, Global CCS Institute Shell International B.V. 1

DEFINITIONS AND CAUTIONARY NOTE Reserves: Our use the term reserves in this presentation means SEC proved oil and gas reserves. Resources: Our use the term resources in this presentation includes quantities oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with the Society Petroleum Engineers 2P and 2C definitions. Organic: Our use the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact. Resources plays: Our use the term resources plays refers to tight, shale and coal bed methane oil and gas acreage. The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this document Shell, Shell group and Royal Dutch Shell are sometimes used for convenience w references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words we, us and our are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used w no useful purpose is served by identifying the particular company or companies. Subsidiaries, Shell subsidiaries and Shell companies as used in this document refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Companies over which Shell has joint control are generally referred to as joint ventures and companies over which Shell has significant influence but neither control nor joint control are referred to as associates. The term Shell interest is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in a venture, partnership or company, after exclusion all third-party interest. This presentation contains forward-looking statements concerning the financial condition, results operations and businesses Royal Dutch Shell. All statements other than statements historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements future expectations that are based on management s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure Royal Dutch Shell to market risks and statements expressing management s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use terms and phrases such as anticipate, believe, could, estimate, expect, intend, may, plan, objectives, outlook, probably, project, will, seek, target, risks, goals, should and similar terms and phrases. T are a number factors that could affect the future operations Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification suitable potential acquisition properties and targets, and successful negotiation and completion such transactions; (i) the risk doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks expropriation and renegotiation the terms contracts with governmental entities, delays or advancements in the approval projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell s 20-F for the year ended 31 December, 2014 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as the date this presentation, 28 October, 2015. Neither Royal Dutch Shell nor any its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result new information, future events or other information. In light these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. T can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all. We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain this form from the SEC by calling 1-800-SEC-0330..

BACKGROUND ENGAGING THE PUBLIC ON CCS CAN BE CHALLENGING

BACKGROUND COLLABORATION HELPS TO BALANCE THE SCALES DENISE HORAN Stakeholder Engagement & Communications Manager, Peterhead CCS Project KIRSTY ANDERSON Principal Manager Public Engagement, Global CCS Institute A STRONG COMBINATION OF EXPERIENCE & SHARED ENTHUSIASM

BACKGROUND CREATING ENGAGING OUTREACH AND EDUCATION INITIATIVES THAT

AIM COLLABORATION: TO ACHIEVE BETTER PROJECT OUTCOMES & FUTURE LEARNINGS COLLABORATING TO FULFIL DIFFERENT BUT COMPLEMENTARY AIMS

METHODS WIDEN THE PARTNERSHIP CIRCLE

METHODS KEY METHODS, RESOURCES AND EXPERTISE Shared vision and understanding the need for a project Communication/ engagement function embedded within core project activities Building an understanding the local context Engaging early and maintaining contact Being present, responsive and inclusive Making it engaging and relevant Make use experts and independent advocates

RESULTS POSITIVE RESULTS SO FAR Positive local response to project and to engagement activities Project activities integrated into local events Strong working relationships built up and high levels trust Education and engagement initiatives wellreceived by other projects around the world No public submissions on planning application Strong foundation to build on during construction phase Engagement, collaboration and community presence have led to strong, trusting relationships to build on over the life the project

RESULTS COMMUNITY CONSULTATION Three phases over 13-month period 850 people attended public exhibitions 3 stakeholder briefings, 8 community council briefings, 2 local community planning group briefings Consistent issues/concerns raised: Desire for community benefits Construction traffic management Potential emissions Positive feedback from community about quality information provided, plus openness and knowledge levels support team

RESULTS SCHOOL EDUCATION INITIATIVES CO 2 degrees Energy and Climate Change Workshops Classroom teaching, hands-on experiments and energy-related circus skills Delivered by Global CCS Institute, GEOBUS and local community arts group Theatre MODO View the students in action on the CO 2 degrees YouTube channel: www.youtube.com/watch?v=fa6xgbvm2gy Engaging with local schools, raising awareness and creating opportunities to inspire Young Ambassadors for low-carbon energy

RESULTS COMMUNITY-LED EVENTS Integrating project into local events: low-key stands, fun experiments, project experts

RESULTS OTHER PARTNER-SUPPORTED INITIATIVES Strong links to local education, business and enterprise organisations to maximise local opportunities Partnership approach to local supply chain development Two secondees to project, focused on local supply chain and education and outreach Key inputs to knowledge transfer package Building for the future: creating the right conditions for the development a CCS industry 13

RESULTS SOON TO COME Broader programme education and outreach Geological Journey at the Edinburgh International Science Festival 2016 Partnership working with other Shell CCS projects Development and roll-out the Crown Estate s CCS module for UK schools

CONCLUSIONS SOCIAL ACCEPTANCE CAN T BE WON, IT MUST BE EARNED Genius is one percent inspiration and ninety-nine percent perspiration Thomas Edison A collaborative approach to engagement works! Understanding local community is key: needs, concerns, social context It is essential to maintain and build on these solid foundations Access to both project experts and independent advocates greatly improves credibility Information and engagement activities need to be set in a relevant context A consistent presence and open approach builds trust t are no shortcuts

FURTHER INFORMATION PETERHEAD CCS PROJECT Visit: www.shell.co.uk/peterheadccs Email: denise.horan@shell.com GLOBAL CCS INSTITUTE Visit: www.globalccsinstitute.com Email: Kirsty.Anderson@globalccsinstitute.com