1. Copyright: Shell Exploration & Production Ltd. Creating Business Value Through Strong Product Stewardship Sam Smolik Vice President HSSE/SD Shell Downstream Inc 9 th Asia Pacific Responsible Care Conference Manila, Philippines, 16 Nov 2005

2. 2 Today’s objectives 1.The Shell Group’s foundations for Product Stewardship 2.Product Stewardship contributions to business success 3.HSSE issues in the rapidly growing Asia Pacific region 4.Challenges – for all of us

3. 3 The bedrock of the Shell Group’s approach to HSSE We are committed to: no harm to people protect the environment use material and energy efficiently publicly report performance promote best practices manage HSSE like any other critical business activity strong culture Every Shell Company: has a systematic approach to HSSE management sets targets for improvement has requirements for contractors has requirements for joint ventures includes HSSE performance in personnel appraisals

4. 4 Product Stewardship principles 1.Structured approach 2.Compliance with internal, regulatory and customer requirements 3.Reduce product risks 4.Reduce life cycle risks 5.Perform risk assessments 6.Consider economic, environmental and social risks 7.MSDS availability 8.Product HSSE information 9.Packaging and labeling 10.Emergency response support 11.Managed use of products 12.External engagement

5. 5 From principles to performance Principles Business: HSSE partnerships Business success

6. 6 Our principles in action ……

7. 7 Principles in action: Isocyanate policy for polyol customers Principle applied: Reduce product risks Supports industry goals - safe and responsible use of toluene diisocyanate (TDI) Extends engagement on TDI Product Stewardship to polyol-only customers Helps to jointly assure the safety and sustainability of our industries Business benefit: Reduction of business risks – safe handling of products

8. 8 Principles in action: Life cycle analysis of biofuels Principle applied: Consider economic, environmental and social risks Research into life cycles of alternative fuels Impact of different agricultural practices and transport requirements on the greenhouse gas balance Improved understanding - biofuels contribution to climate change challenge Business benefit: Richer dialogue with key stakeholders on potential for biofuels

9. 9 Principles in action: Solvents customer appraisals in the Philippines Principle applied: Reduce life cycle risks 10-20 appraisals carried out each year Customers value: being alerted to unsafe practices attention drawn to regular maintenance checks focus on benefits of clean, safe premises Business benefit: Strengthens customer relationships, business risks reduced

10. 10 Principles in action: Product Stewardship Management System Principle applied: Structured approach Business-owned systems: define management of product-specific HSSE risks Ensures HSSE accountabilities at all levels are clear and adequate resources are available Evergreen systems Business benefit: Reduction of HSSE risks of products

11. 11 Issues faced in Asia Pacific  On-going rapid market growth  Large number of start-up and smaller businesses  Varying safety cultures across the region  Ever-expanding need to provide product support and to manage regulatory issues

12. 12 Five simple challenges – Product Stewardship in Asia Pacific 1. Set clear and high expectations 2. Walk the talk 3. Collaborate 4. Set the right example 5. Show strong leadership

13. Copyright: Shell Exploration & Production Ltd. Creating Business Value Through Strong Product Stewardship Sam Smolik Vice President HSSE/SD Shell Downstream Inc More information at www.shell.com/sustainwww.shell.com/sustain