A message from our president and CEO
The multiple challenges of 2020 might have changed the way we do things, but it hasn’t changed our values, our mission, and our purpose.
Our fifth Annual and Sustainability Report (ASR) could not have arrived at a more precarious time in history.
As of this writing, the world is still navigating the new reality of living with the COVID-19 pandemic. Much has been already said about how it is both a challenge and an opportunity for businesses to re-examine their strategies and actions moving forward. Businesses that were not able to cope and adapt quickly caved in and shut down for good.
For more than 105 years, Pilipinas Shell has been a fixture in the lives of millions of Filipinos nationwide; we will not let COVID-19 break that legacy. If anything, the unique challenges posed by the COVID-19 pandemic pushed us even more to continue delivering the high- quality products and services we have been known for.
A reliable partner for essential services
To say that 2020 was a challenging year may prove to be an understatement. In the Philippines, the year started with the eruption of the Taal Volcano, followed by the news of the COVID-19 pandemic. While we have yet to recover from the devastating effects of these back-to-back events, with community quarantines still in force, a series of typhoons also hit the country during the latter half of the year. Inevitably, these slowed down economic activity, causing drastic decline in demand for petroleum products.
Despite limitations and restrictions, Pilipinas Shell’s different classes of business showed great resolve as they continued to be reliable partners for essential services. Our network of with 1,096 retail stations remained open to serve customers nationwide, catering to both their fuel and non-fuel essentials. Shell Aviation, on the other hand, continued to provide jet fuel and refueling services for local and international flights, and even fueled 1,000+ humanitarian repatriation flights for locally stranded individuals.
At the height of the lockdown period, our commercial fuels and lubricants businesses also exhibited reliable and resilient delivery as they continued to cater to essential industries, such as the power, manufacturing, transport, and mining sectors, just to name a few. On top of innovating its sustainable product segment, our bitumen business also continued to serve its key customers in construction and infrastructure development.
Unwavering dedication despite uncertainties
But we would not have continued to thrive this year if it were not for the unwavering commitment and dedication of our 606 employees nationwide. Indeed, it is during these times of seemingly insurmountable adversity where our people show their true capacity to adapt, excel, and, most importantly, to care for each other and our communities. Despite challenges in our current work setups, our Shell People Survey (SPS) scores remained at par or better than the top quartile. Our engagement scores further increased by two points from the previous year, a testament to the persistent motivation and dedication of our employees.
Our key decision-makers exhibited great courage as they made bold choices to keep the business agile and responsive during this challenging year. Our employees, especially those who kept our operations running every day, showed great care in ensuring the health, safety, and welfare of our different stakeholders. Our forecourt staff, our very own front liners, showed tireless persistence as they continued to serve thousands of motorists every day in our stations nationwide, even at the peak of the community quarantine period.
The multiple challenges of 2020 might have changed the way we do things, but it hasn’t changed our values, our mission, and our purpose. Even in the face of a trying year, we all found a way to stay true to our purpose and our core values.
Forging pathways for mobility
At the height of the lockdown period, we all realized the value of connection and mobility—two things that are at the heart of our business. With mobility
at the top of our minds, our recovery strategy focused on ensuring a steady and reliable supply of our high-quality products for our customers and partners nationwide.
The ongoing transformation of our Tabangao facility, from a refinery to a world-class import facility, will strengthen our position to meet demand not only in Metro Manila and Southern Luzon, but even in the Northern Visayas. We also established an Outside Supply Point (OSP) in Subic, an important piece in our supply chain network, which will secure our competitive edge in Central and North Luzon.
These developments, together with the continued success of our North Mindanao Import Facility (NMIF) in Cagayan de Oro, complements the supply chain triangle that Pilipinas Shell has created to maximize our efficiency and to support the national government’s efforts to jumpstart the economy amidst the pandemic.
Our network of retail stations also continues to serve as a lifeline, not just for frontline workers and motorists in need of fuel, but also for households and communities in need of assistance. We provided close to 3.8 million litres of discounted fuel for the transport of healthcare workers, frontliners, and critical goods. Through our non-fuel retail offers at Shell Select convenience stores and deli2go, we were also able to provide households quick access to necessities such as food, toiletries, cleaning materials, and other essentials, without compromising their health and safety.
Strengthening connections with communities
Despite the numerous restrictions, we were still able to strengthen our connections with the communities that we serve. Not only did we continue to deliver on our regular social investment programmes, but we also launched initiatives to help alleviate the effects of the COVID-19 pandemic. To date, we have spent over PHP150 million for our COVID-19 response activities, which has already benefited close to 800,000 Filipinos.
Pilipinas Shell Foundation, Inc. (PSFI), in partnership with different organizations, has provided around 523,000 meals to frontline workers. Additionally, our different classes of business (COBs) also initiated COVID-19 response programmes not only for their indigent beneficiaries, but also for their business partners, extended workforce, and customers.
A special report on our consolidated COVID-19 response further highlights the reach and the impact of our collective efforts (see page 67).
The power to move forward
Indeed, the past year has revealed the depths of everyone’s drive, passion, and character. Faced with what is considered the biggest health and economic crisis of our generation, Pilipinas Shell has proven that our purpose and our core values drive everything that we do.
And as we face a new year, one that is brimming with hope and anticipation, we have proven ourselves to be a truly resilient, adaptive, and future-ready organization. We have shown that we can continue to thrive in a post-pandemic world, and in the energy transition to come.
In the coming years, we will be introducing new strategies and exciting projects that will help steer the Company towards its energy transition. In 2021 alone, despite the continuing challenges of the COVID-19 pandemic, we expect to open an additional 60 to 80 retail stations nationwide.
Let’s continue to transcend the challenges of today and make energy for the future.
CESAR G. ROMERO
President and CEO
Pilipinas Shell Petroleum Corporation
Life at Shell
At the height of the pandemic, Pilipinas Shell managed to further enhance its business resilience by adapting relevant business models to the current environment and emerging customer needs.
In recognition of Pilipinas Shell’s comprehensive governance code and its strong fit-for-purpose corporate structure that is guided by its core values of honesty, integrity, and respect for people.
The respiratory care campaign centers on empowering staff and their dependents, highlighting the importance of being accountable and responsible for one’s actions and behavior to prevent the spread of respiratory illness and to keep oneself healthy amid the pandemic.
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