Abstract
China s rapid industrialization and economic expansion are, among other things, causing massive environmental damage. Driving the rapid industrialization and environmental degradation are the fossil fuels. Shell China can contribute to making energy production in China, if not clean and sustainable then, cleaner and more sustainable by making existing fossil fuels energy production more environmentally friendly; by diversifying and developing alternative energy sources; and by creating precedence influencing other companies and industries to follow in their footsteps. This thesis has two goals. The first is to identify and analyze changes that have happened in the Shell Group since the 1990s when energy companies started greening due to stricter environmental legislation in the developed countries as well as increased demands and expectations from civil society movements. The thesis thus seeks to identify to which degree the Shell Group in the past decade has become a more environmentally responsible company. The second goal is to analyze to which degree these changes have had relevance for Shell China and whether barriers in the Chinese context influence its prospects to operate in a more environmentally friendly way. Contextual barriers are identified and their consequences for the implementation of Shell China s environmental policies discussed.