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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Business

Business

Exclusive: Shell CEO comes under pressure from within on renewables shift

A Shell logo is pictured during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 23, 2022. REUTERS/Denis Balibouse
A Shell logo is pictured during the European Business Aviation Convention & Exhibition (EBACE) i... A Shell logo is pictured during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 23, 2022. REUTERS/Denis Balibouse
A Shell logo is pictured during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 23, 2022. REUTERS/Denis Balibouse
A Shell logo is pictured during the European Business Aviation Convention & Exhibition (EBACE) i... A Shell logo is pictured during the European Business Aviation Convention & Exhibition (EBACE) in Geneva, Switzerland, May 23, 2022. REUTERS/Denis Balibouse

Listen to the article now

Wael Sawan, the CEO of Shell (SHEL.L), has come under fire from within the oil firm for his strategy after two workers sent a rare open letter pleading with him not to reduce investments in renewable energy, igniting an internal discussion.

The open letter was published on Shell’s internal website earlier this month and was obtained by Reuters this week. Sawan previously discussed plans to halt investment in renewable energy and low-carbon businesses during an investor day in June as part of a goal to increase returns.

The corporation also divided its low-carbon division and did away with the post of global head of renewables, followed by Thomas Brostrom’s resignation after less than two years on the job.

The goal of Shell has long been to take the lead in the energy transition. The letter, which was written to Sawan and the Shell executive committee, stated, “It is the reason we work here.

“We are quite concerned about the recent pronouncements made during and following the capital markets day… We can only hope that the CMD announcements’ appearances are deceptive and that Shell will continue to pioneer the energy revolution.

Lisette de Heiden and Wouter Drinkwaard, Shell’s low-carbon business employees, signed the letter. De Heiden or Drinkwaard did not answer a request for comment.

According to corporate insiders, the letter attracted more than 80,000 views, 1,000 likes, and a lengthy discussion in the comments section on the open platform, including contributions from Sawan.

NO SIMPLE ANSWERS

In his statement, Sawan stated that there are “no simple solutions and no shortage of dilemmas or challenges” for an organization in the center of the energy transformation.

“We may not always agree on the best course of action, but I am pleased with the part Shell is playing and will continue to play. I am pleased with how we work hard to offer low-carbon solutions to our consumers as we gradually transition to a net-zero emissions business, providing people with reliable and cheap energy every day.

Sawan, who assumed office in January, has worked to increase Shell’s operational performance and profitability by placing more emphasis on oil and gas operations, biofuels, and electric car charging.

Recent months have seen Shell abandon offshore wind projects in France and Ireland, sell its UK power retail company, and announce that it is looking to sell holdings in Indian renewable energy projects to help increase profits. According to industry insiders, it is also considering selling all or a portion of the Sonnen battery storage business that it bought in 2019.

Regarding the Sonnen selling process, Shell declined to comment.

“We appreciate that our staff is involved in and passionate about both the energy transition and Shell,” a Shell representative stated. At our recent Capital Markets Day, we identified the sectors of today’s energy system and the future where Shell is best positioned to invest, compete, and win. Shell is actively tackling the energy transformation.

Since the strategic shift, several top Shell executives have left the low-carbon and renewables division.

Oliver Bishop, who oversaw Shell’s global business for hydrogen mobility and joined BP in September in a similar capacity, Roberto Jimenez, who oversaw Shell’s European onshore power, and Colin Crooks, senior vice president of renewables and energy solutions Europe, will all depart at the end of the month, according to a company spokesperson. By 2050, Shell wants to have no emissions at all.


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