Shell Named Most Sustainable/Ethical Oil Company in 2006
Madrid, Spain - For the third year running, Shell ranks the most sustainable/ethical company, followed by BP and Brazil's Petrobras, according to a study by the Madrid ethics rating firm Management & Excellence (M&E).
Shell substantially improved from 82% (2005) to 89%. It supports 12 codes of human rights and its board met a record 29 times in 2004, compared with 8 at BP. It offers grievance channels for employees in over 50 countries and is implementing 120 biodiversity projects worldwide. No oil company studied was as transparent as Shell, publishing 13 separate reports on topics ranging from environmental impact to animal testing. Caught in a scandal two years ago for misrepresenting its oil reserves, Shell now publishes a 40-page report on how its reserves calculations comply with SEC guidelines.
1. Shell 89.01%
2. BP 83.52%
Petrobras 83.52%
4. Statoil 83.15%
5. Total 76.19%
6. Norsk Hydro 73.26%
Repsol 73.26%
8. Chevron 72.53%
9. ExxonMobil 68.13%
10. Conoco 66.30%
11. Pemex 62.64%
12. ENI 62.27%
13. Lukoil 58.61%
14. Gazprom 35.90%
15. Petronas 20.15%
Brazil's Petrobras, moves up this year from 7th (2005) to 2nd place. While Exxon scored 80% in 2005, it only achieved 68.1% this year, owing to gaps in reporting and thus dropping it from 2nd to 9th place in 2006. Exxon gives little information on employee performance measurement systems, supplier management, and is not listed in the FTSE4Good or Dow Jones Sustainability indices.
Other companies are improving their transparency. Russia's Lukoil manages to raise its total score by 23 percentage points from 35% to 58.61%, or a jump of 67%. In September 2005 Lukoil released its first sustainability report, which more than doubled its transparency score from 29% (2005) to 62% (2006).
SOURCE Management & Excellence