Local content and skills development
Local content is a term we use to describe the ways we contribute to the development of the countries where we operate, beyond paying taxes and royalties to governments. This mainly involves creating jobs, training people, supporting local businesses and buying goods and services from local suppliers.
In 2019, we spent $44.9 billion on goods and services, of which around 65% was in Australia, Canada, the Netherlands, the UK and the USA. In 2019, we estimate around $5.7 billion was spent in countries that, according to the UN Development Programme Human Development Index 2017, have a gross domestic product of less than $15,000 a year per person. In these countries, Shell companies spent around 87%, or around $4.9 billion, with local companies.
Local procurement of goods and services in 2019
Goods and services
spent globally on goods and services
spent in Australia, Canada, the Netherlands, the UK and the USA
spent in countries where gross domestic product is less than $15,000 a year per person*
spent in these low-income countries with local companies
* according to the UN Development Programme's Human Development Index 2017
In some countries we support efforts to help more local nationals into the workforce.
For example, Shell Oman has helped the Petroleum Development Oman joint venture (PDO, Shell interest 34%) create around 17,000 jobs for local nationals since 2011 as part of a partnership to develop the country’s energy industry.
In 2019, Shell Oman worked with PDO and other major operators to open up new opportunities for Omanis. This included using smarter scheduling of maintenance activities for facilities in a local area so nationals could access multiple sites more easily from their homes.
Our enterprise development and skills programmes create opportunities, while adding value to our supply chain. We also sponsor training programmes for people who are not part of Shell’s supply chain. For example, in the Philippines, we support the Bridging Employment through Skills Training programme, which provides vocational training to out-of-school youths and unemployed adults.
Shell’s LiveWIRE programme helps local entrepreneurs turn their ideas into reality. The programme marked its 37th anniversary in 2019 and operates in 18 countries. In 2019, we launched programmes in Canada and the Philippines. Around the world, Shell LiveWIRE trained 3,079 people and supported 1,269 businesses, while 1,392 jobs were created.
In 2019, 44 Shell LiveWIRE-supported businesses entered our supply chain. One of these was WormingUp, an enterprise which helps to reduce and more efficiently recycle waste in Shell retail stations. Shell LiveWIRE also supports She’Kab, a ride-sharing service in Pakistan that uses a digital platform and an app to connect women with security-checked drivers.
HySiLabs, a Shell France-supported company, recently signed up to the Shell GameChanger programme, which works with start-ups and businesses on unproven early-stage ideas with the potential to impact the future of energy.
Shell has also launched the Shell Startup Engine in partnership with StartupBootCamp. The programme offers entrepreneurial support, including coaching and mentoring and access to industry experts.