General – Shell CEO Under Pressure
According to Reuters Shell CEO Wael Sawan has come under pressure over his strategy from within the energy company after two employees issued a rare open letter urging him not to scale back investments in renewable energy, sparking an internal debate.
The open letter, posted earlier this month on Shell’s internal web and seen by Reuters this week, comes after Sawan outlined at an investor day in June plans to slow investment in renewables and low-carbon business as part of a strategy to boost returns.
The company also split its low-carbon business and scrapped the role of global head of renewables, which was followed by the departure of the holder of that position Thomas Brostrom after less than two years in the role.
“For a long time, it has been Shell’s ambition to be a leader in the energy transition. It is the reason we work here,” said the letter which was addressed to Sawan and the Shell executive committee.
“The recent announcements at and after the capital markets day deeply concern us… We can only hope the optics of the CMD announcements are deceiving us and that Shell continues its path as a leader in the energy transition.”
“For an organisation at the crux of the energy transition, there are no easy answers and no shortage of dilemmas or challenge,” Sawan wrote in his response.
“We might not always agree on the way forward, but I feel good about the role Shell is, and will continue, to play. I am proud of how we provide affordable and secure energy to people every day, while we work hard to provide lower-carbon solutions to our customers, as we transition over time to a net-zero emissions business.”
