Shell Risk Report

⚖️ legal & regulatory

Shell faces significant legal challenges, including several lawsuits related to oil pollution and environmental issues. These legal hurdles represent potentially costly regulatory penalties and risks for the company. Issues in Nigeria, in particular, could lead to long-term complications and financial liability.

• On 🗓 June 20, 2025, Nigerian communities initiated a lawsuit against Shell over oil pollution, seeking resolution in the high court.
• Shell faced the possibility of being liable for oil spills as of 🗓 June 20, 2025, but noted "legal barriers" still existed.
• A major investigation on 🗓 February 10, 2025, linked Shell to sanctioned activities involving Russian gas deliveries.
• Shell faced legal action in the UK high court related to oil pollution cases dating back a decade, with new developments on 🗓 February 18, 2025.

👥 labor & workforce

Shell is undergoing significant workforce reductions as part of its strategic shift and cost-cutting measures. These changes aim to improve profitability but also highlight the potential risks of workforce dissatisfaction and operational impact.

• Shell planned layoffs of 20% of its exploration jobs announced on 🗓 September 10, 2024.
• Workforce reduction discussions on 🗓 August 29, 2024, aimed at strategic realignment to reduce costs.
• Shell made an extensive job cut announcement targeting its oil exploration division, dated 🗓 August 30, 2024.

🏗️ operational & business continuity

Shell's operational risks have been amplified due to legal and compliance issues, as well as safety concerns around its offshore oil ships following past oil spills. These issues could disrupt Shell's business continuity and future plans in key markets.

• Ongoing safety problems with Shell’s offshore oil ships have been reported on 🗓 April 4, 2025, continuing years after a major spill in Nigeria.

📜 innovation & r&d

Shell's strategic initiatives include investments in LNG and other innovation-focused projects as it transitions to more sustainable energy solutions. These efforts are likely to enhance long-term viability and align with global energy trends.

• Shell completed its acquisition of Singaporean LNG company Pavilion Energy on 🗓 April 3, 2025, marking a strategic investment in LNG.