Shell, Diversity, equity & inclusion, Ethnic diversity targets and reporting

Details of engagement:

Since 2020, EOS have been communicating for the company to set targets for ethnic diversity in the workforce, in particular in the US and UK businesses, and reporting on metrics in line with EEO-1 reporting. In a meeting with the company in 2021, EOS highlighted the lack of content on ethnic diversity compared with other dimensions in its reporting, and no clear targets. The increasing expectations and granularity of reporting in the US were highlighted and Shell was asked to emulate, which the company acknowledged. The topic was escalated as part of voting engagement and asked whether the company would disclose more granular data on the ethnic diversity within its workforce, including a breakdown by seniority. EOS also asked whether the company has ethnic diversity targets other than those for the UK that are set out in the annual report.

Outcomes and next steps:

In the 2022 annual report, published in 2023, the company published a race/ethnicity breakdown for staff in the UK and USA, at both an employee level and for senior management. In addition, the company published 2025 targets for UK and USA senior leadership roles held by people from ethnic minority groups. The company has a UK target to increase black representation in senior leadership roles and increase black graduate and experienced hires. In the USA, the company set a specific target for black or African American representation and Hispanic Latino representation in senior leadership positions.

As signatories of the Workforce Disclosure Initiative, an initiative which seeks to drive systemic change in workforce reporting, we will continue to monitor the company’s reporting with regard to ethnic diversity and disclosure in line with EEO-1.

At time of publication Shell is held in our High Alpha Global Equity, Passive Developed Equities, Passive Smart Beta Equities and Passive UK Equities portfolios.