Abstract

Cautionary Note The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this Report: "Sustaining a high-performance culture by leading with a ‘Lens of Care’" "Shell", "Shell Group" and "Royal Dutch Shell" are sometimes used for convenience where 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 Royal Dutch Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. "Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this Report: "Sustaining a high-performance culture by leading with a ‘Lens of Care’" refer to entities over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as "joint ventures" and "joint operations", respectively. Entities 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 an entity or unincorporated joint arrangement, after exclusion of all third-party interest. This Report: "Sustaining a high-performance culture by leading with a ‘Lens of Care’" contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of 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 of 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 of terms and phrases such as "aim", "ambition", "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "schedule", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this Report: "Sustaining a high-performance culture by leading with a ‘Lens of Care’" 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 of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this Report: "Sustaining a high-performance culture by leading with a ‘Lens of Care’" 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 risk factors that may affect future results are contained in Royal Dutch Shell’s Form 20-F for the year ended December 31, 2018 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this Report: "Sustaining a high-performance culture by leading with a ‘Lens of Care’" and should be considered by the reader. Each forward-looking statement speaks only as of the date of this Report: "Sustaining a high-performance culture by leading with a ‘Lens of Care’", 15-11-2019. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this Report: "Sustaining a high-performance culture by leading with a ‘Lens of Care’". We may have used certain terms, such as resources, in this Report: "Sustaining a high-performance culture by leading with a ‘Lens of Care’" that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our 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. Abstract Shell companies conducted a case study into the use of worker welfare strategies to drive engagement in major brownfield and greenfield construction projects and thereby improve: worker productivity, the quality of construction work and overall project HSE and financial performance. Two major brownfield capital projects (>$100 mil US) in The United States and The Netherlands developed and implemented a comprehensive worker welfare strategy. The components of the strategy were built on 14 identified core principles of worker welfare. It was recognized that an intentional care mindset can be developed and maintained in a workplace. To measure impact, surveys set at regular intervals were conducted to measure workers perception of care, engagement and welfare and then paralleled to several project metrics, such as: Total Record Case Frequency (TRCF), Hands on Tools-Time (HoTT), schedule performance and work-hour rates. The results from the two projects were compared to other Shell projects of similar size and scope that did not have a comprehensive worker welfare strategy. In the US, the implemented strategy showed a substantial positive impact in three areas: (a) productivity, (b) safety records and (c) engagement/participation/retention which corroborated the data from the Netherlands (NL). The productivity improvements were reflected in the US in top quartile results for both absolute and relative man power hours. Statistically significant higher HoTT was observed for NL (54%), compared to non-Care for People (CfP) projects (average 36%) indicating greater productivity and efficiency. Efficiency and productivity were also evidenced by project delivery 4 months ahead of schedule. Further, the safety record showed a TRCF of 0.75, beating the 0.80 target at NL and the TRCF for US at (0.9) was significantly lower compared to non-CfP projects similar in geography, complexity, risk and size indicating a better safety performance. Since a large part of annual project investment is man hour related and the Shell worker welfare approach requires relatively small investments, the ROI and productivity gains have been estimated to be high. Finally, in the US, scores of 80+% were recorded in many key areas of most subcontractor’s groups (e.g. Secure Workplace) resulting in a project saving of approximately $10M from a lack of per diem. This paralleled The Netherlands with engagement scores (86, 81, 80, 79%). These results demonstrate the importance of focus on outcomes and business impact and showed that "care", as defined by the 14 elements of worker welfare, is a key driver of engagement, having subsequent positive impact on project outcomes. The worker welfare strategies present a clear and replicable strategy to drive both worker wellbeing and overall project performance. Recognizing the learnings from cross-industry coalitions such as Building Responsibly, this work will also be used to support, inform and guide the development of a comprehensive wider-industry standard to deliver worker welfare and care for employees.

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