Shell Again Most Sustainable Oil Company in 2006 Brazil's Petrobras Moves to 2nd; Exxon Drops to 9th Place; Four of Top-5 Are European
Madrid, 22 February 2006: Shell tops the list of the worlds most sustainable and ethical oil companies for the third year running. In the 2006 study Shell achieves the highest score of any oil company ever, achieving 89.01%. This is the result of the third in-depth study measuring oil companies' compliance with over 280 key areas of sustainability, corporate governance, ethics, social responsibility and transparency by the Madrid-based ethics research and rating company Management & Excellence S.A.
Shell was able to substantially improve its already strong 2005 performance of 82% even though this year's study covered roughly twice as many areas as the 2005 study, thus adapting to higher benchmarks in sustainability in the oil business. Shell subscribes to no fewer than 12 codes of human rights and its board met a record 29 times in 2004. By comparison, top-rated BP's board only met 8 times. The company offers grievance channels for its personnel in over 50 countries and is implementing 120 biodiversity projects worldwide. No oil company studied was as transparent as Shell: the company publishes 13 separate reports on topics ranging from environmental impact assessment to animal testing.
Other major movements in the M&E league table, which scores the actual compliance by oil companies to established standards in sustainability and related fields, includes Brazil's Petrobras , which moves up this year from 7th in 2005 to 2nd position. While Exxon scored 80% in 2005, it only achieved a score of 68,1% this year, owing to gaps in reporting and thus dropping it from 2nd to 9th place in 2006. For a company its size, Exxon gives little information on its employee performance measurement systems, supplier management, and is not listed in the FTSE4Good or Dow Jones Sustainability indices.
Shell 89.01%, BP 83.52%, Petrobras 83.52%, Statoil 83.15%, Total 76.19%, Norsk Hydro 73.26%, Repsol 73.26%, Chevron 72.53%, ExxonMobil 68.13%, Conoco 66.30%, Pemex 62.64%, Eni 62.27%, Lukoil 58.61%, Gazprom 35.90%, Petronas 20.15%.
On the other hand, companies are generally 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 brought out its first sustainability report discussing its achievements in environment, employee benefits and community support, which more than doubled its transparency score from 29% in M&E's 2005 ranking to 62% in 2006. Lukoil is known to be the internationally most widely traded Russian equity, listed in London as an ADR.