aoilllllllllllllllllllllllllllllllllllllllllllllll

Assignment

1. MASTER IN ENVIRONMENTAL,SOCIAL AND GOVERNANACE(ESG) Aug’24 - Feb’25(MESG-4) Sector- Oil & Gas Assignment Group 3 Group Participants Anand Saini RSN Sharma Divya Tiwari S C Sharada Kavin Sadvikar Saigitha Vijay Navin Shankar Naik Saiyad Karar Husain Nivetha Ramanujam Saket Kumar Vats Prathmesh Pagare Shekhar Golla ESG Rhea Thomas Suprikesh Kadlag Kamal Waris Sowndarya ‹#›

2. Content Index ‹#› List of companies 3 Company Introduction 4 Risk and opportunity 5 Stakeholder process & identification 7 Materiality process and assessment 9 ESG Strategy and implementation 11 ESG Disclosure & ratings 15 Sustainable finance intervention 18 ESG Score 20 Conclusion & takeaway 22

3. Listed Oil and Gas Companies in India & Globally (Top 10) # Companies selected based on top market cap in India & Globally ‹#› Sr. No Company Sr. No Company Indian Global 1 Reliance Industries Ltd. 1 Saudi Aramco 2 Oil and Natural Gas Corporation (ONGC) 2 Exxon Mobil 3 Oil India Ltd. 3 Chevron 4 Petronet LNG Ltd. 4 PetroChina 5 Hindustan Oil Exploration Company Ltd. 5 Shell PLC

4. Company Introduction ‹#› S. No Parameter Reliance Shell PLC 1 Company Overview Founded in 1973, India's largest conglomerate with interests in petrochemicals, telecom, retail, and renewable energy. Established in 1907, Shell is a global energy giant headquartered in the Netherlands, operating across oil, gas, and renewables with a focus on global energy transition. 2 Core Business Areas Focuses on refining, petrochemicals, telecom (Jio), retail, media and renewable energy (solar, hydrogen). Focuses on oil and gas exploration, production, refining, along with growing investments in renewable energy (wind, solar, electric vehicle infrastructure). 3 Market Position and Reach Global operations with strong market presence in telecom (Jio) and retail. A top global player in oil and gas, with operations in over 70 countries and growing involvement in clean energy solutions worldwide. 4 Financial Performance High revenue and profitability, with growth driven by telecom and retail sectors. Consistently among the top revenue-generating companies globally, with performance linked to oil prices, while expanding clean energy investments. 5 ESG Focus and Sustainability Committed to carbon neutrality by 2035, with large investments in renewable energy. Committed to achieving net-zero emissions by 2050, Shell is focusing on reducing its carbon footprint through renewable energy, biofuels, and carbon capture technologies. 6 Global Ranking Fortune Global 500 - #86 Forbes Global 2000 - #49 Fortune Global 500 - #13 Forbes Global 2000 - #17

5. Risk & Opportunities ‹#› Category Reliance Shell Risk Opportunity Risk Opportunity Environmental Climate Change Clean Energy Investment Climate Change Low-Carbon Energy Managing Environmental Impacts Carbon Neutral goal Regulatory and Policy Uncertainty Carbon Capture and Storage (CCS) Energy Efficiency of Operations Energy Transition Technology Risks Energy Efficiency Water and Effluent Management Circular Economy Investment Transition Risks Circular Economy Ecosystem and Biodiversity Bio Innovation Waste management Circular Economy Digital Services Fossil Fuel Dependency Social Disaster Preparedness and Management CSR and community development Community Relations Community Engagement and Development Health, Safety and Employee Well-being Education and skill development Human Rights Supply Chain Sustainability Diversity and Inclusion Strengthening Entrepreneurial and Livelihood Capabilities Social License to Operate Sustainable Development Community Development Enhancing Access to Basic Entitlements for Social Security Health and safety Labour Management Diversion and Inclusion Supply chain Safety

6. Risk & Opportunities ‹#› Category Reliance Shell Risk Opportunity Risk Opportunity Social Sustainable Supply Chain Management Innovation and technology Human Rights Customer Satisfaction Talent Management Governance Data privacy and cybersecurity Strong Governance Framework Governance Failures Strong ESG Integration Security and Asset Management Sustainability Reporting and Transparency Stakeholder Engagement Sustainability Reporting Business Ethics, Integrity and Transparency Board Diversity and Ethics Cybersecurity Threats Cybersecurity Resilience Regulatory Issues and Compliance Data Privacy Stakeholder Engagement Grievance Redressal Mechanisms Corruption and Ethical Issue Strong Governance Economic Performance Legal and Regulatory Challenges Code of Conduct Raw Material Security

7. Stakeholder Engagement Process ‹#› Engagement process Identification Prioritization Dialogue and consultation Feedback Integration Tools Used for Engagement Stakeholder Surveys Stakeholder Engagement Platforms Public Reports and Disclosures Engagement Methods Survey Feedback system Partnership and alliance Meeting and forum

8. Key Stakeholders ‹#› Reliance Shell Plc Customers Investor Community Employees Employees/Workforce/Pensioners Shareholders Regulators/Governments NGO & Communities NGOs/Civil society stakeholders/Academia/Think tanks Suppliers Communities Investors(Other than Shareholders) Customers Regulators Suppliers/Strategic partners

9. Materiality Process ‹#› Objective: To identify and prioritize the most relevant ESG issues that can impact business performance and long-term value creation. Approach Internal Assessment Internal audits to assess which ESG factors are critical to the company’s operations. Internal Assessment Internal audits to assess which ESG factors are critical to the company’s operations . Stakeholder Input Stakeholder feedback plays a crucial role in identifying material issues, ensuring the process reflects external concerns.

10. Materiality Assessment ‹#›

11. SHELL-ESG Strategy & Implementation ‹#›

12. SHELL-ESG Strategy & Implementation ‹#›

13. Shell-ESG Strategy & Implementation ‹#›

14. Reliance-ESG Strategy & Implementation ‹#›

15. Reliance-ESG Strategy & Implementation ‹#› Major Highlights Committed to net zero by 2035 Green Energy Ecosystem with Giga factories for solar energy, hydrogen production, and battery storage Focus on CO2 recycling as a valuable resource through carbon capture and utilization​ Energy savings: 2.53 million GJ and 6.73 million GJ from renewable sources​ Reliance pioneered chemically recycling pyrolysis oil into circular polymers ESG-driven decision-making is backed by partnerships with global leaders in energy transition ₹1,592 Crore contributed towards CSR in FY 2023-24​ Focus on inclusive growth: Empowering local communities, artisans, and small businesses through retail platforms like Swadesh

16. ESG Disclosure ‹#› Reliance GRI, SASB, TCFD, BRSR and SDGs aligned disclosures Disclosure Highlights Carbon Emissions: Reliance provides detailed disclosure on its Scope 1, 2, and some Scope 3 emissions, with a commitment to net-zero by 2035. Renewable Energy Projects: Detailed updates on renewable energy capacity (solar and hydrogen) and investments in green technologies. Social Impact: Disclosures on CSR initiatives through Reliance Foundation, addressing healthcare, education, and rural development . Shell PLC GRI, TCFD, SASB, SDGs aligned disclosures Disclosure Highlights Carbon Emissions: Shell is one of the few oil majors that discloses all three scopes of emissions comprehensively, with specific reduction targets Renewable Energy Projects: Transparent reporting on investments in wind, solar, biofuels, and hydrogen, with a focus on meeting its 2050 net-zero target. Social and Human Rights: Detailed disclosures on human rights due diligence, community investments, and safety metrics .

17. ESG Ratings ‹#› Rating Agency Reliance Shell PLC MSCI (Oct 23) A-Average A-Average Sustainalytics (May 24) 38.5 (High Risk) Industry group Ranking-160/200 Global universe Ranking- 14570/16048 32.4(High Risk) Industry group Ranking- 51/307 Global Ranking - 12553/16048 CDP Climate Change 2023 - A Climate Change 2023- B S & P Global

18. ESG Performance and Key Takeaways ‹#› Company Strength Weekness Reliance Strong commitment to renewable energy, with significant investments in solar and green hydrogen. Extensive CSR initiatives focusing on healthcare, education, and rural development through the Reliance Foundation. Improved carbon reporting and disclosures, though still heavily reliant on oil refining. High environmental risk due to petrochemical and refining operations. Moderate governance performance, with opportunities for greater transparency and improved board-level oversight on ESG issues. Shell Plc Comprehensive carbon emissions disclosures (Scope 1, 2, and 3) and strong alignment with net-zero by 2050. Significant investments in renewable energy (wind, solar, hydrogen) and leadership in carbon capture. Strong social and governance practices, including human rights due diligence and ethical supply chain management. Legacy oil and gas operations continue to pose reputational and operational risks. Medium risk in ESG due to ongoing fossil fuel dependence, despite renewable energy investments.

19. Sustainable Finance Intervention ‹#› Sustainable finance refers to financial services and investments that take into account environmental, social, and governance (ESG) criteria. It aims to promote long-term economic sustainability by directing capital towards projects and companies that have positive social and environmental impacts, while avoiding those that contribute to ESG risks. Key Elements of Sustainable Finance in Line with ESG Environmental: Investments focus on mitigating climate change, preserving biodiversity, reducing pollution, and promoting sustainable use of resources. Examples include green bonds and renewable energy projects. Social: Investments aim to improve societal outcomes by supporting initiatives that foster community development, human rights, labor standards, and access to essential services like healthcare and education. Governance: Good corporate governance is a cornerstone of sustainable finance. This includes ensuring transparency, accountability, ethical business practices, and stakeholder engagement within companies. Types of Sustainable Finance Instruments Green Bonds: These are bonds specifically earmarked for climate and environmental projects. Sustainability-Linked Loans: Loans with interest rates tied to the borrower's ability to meet specific ESG targets. Social Bonds: Issued to fund projects with positive social outcomes, such as affordable housing or education programs.

20. Sustainable Finance Intervention ‹#› Reliance Finance Type Action Green Bond In 2022, Reliance issued $4 billion in bonds, with a focus on green hydrogen and renewable energy. Clean Energy $10 billion towards renewable energy over the next 3 years. Goal- 2035 target for net-zero carbon emissions ESG Linked Financing tied to ESG targets, focusing on carbon reduction Partnerships and Collaborations Collaborations with BP and global institutions for clean energy. Circular Economy Investments in recycling, green chemicals, and sustainability. Shell PLC Finance Type Action Transition Bonds Issued to fund decarbonization and transition to clean energy. Climate-Aligned Bonds Sustainability-Linked Bonds (SLBs) tied to emission reduction targets. Sustainable Investments $2-3 billion/year in renewables (wind, hydrogen, EV infrastructure). Carbon Capture & Storage (CCS) Significant financing for CCS to lower emissions. Divestment from Fossil Fuels Gradual divestment from high-carbon assets for green projects

21. ESG Score card ‹#›

22. Conclusion ‹#›