Shell’s CEO, Wael Sawan, is facing increasing pressure to maintain and expand investments in renewable energy following an open letter from two employees in Shell’s low-carbon division earlier this month. The letter, which has garnered significant attention within the company, raises concerns about Shell’s commitment to being a leader in the global energy transition.
In June, at an investor day, Sawan announced plans to reduce investments in renewables and low-carbon ventures as part of a broader strategy to improve financial returns. This decision was accompanied by a restructuring of the low-carbon business and the elimination of the role of the global head of renewables, leading to the departure of Thomas Brostrom, the previous holder of that position, after less than two years.
The employees, Lisette de Heiden and Wouter Drinkwaard, who both work in Shell’s low-carbon division, expressed their concerns in the open letter. They stated that for a long time, Shell had aspired to be a leader in the energy transition, and they hoped that recent announcements did not signal a departure from that commitment.
The letter has gained substantial attention within the company, with over 80,000 views and 1,000 likes, sparking a lively exchange of comments on the internal platform, including Sawan’s response.
Sawan acknowledged the complexities of the energy transition and emphasized the need for Shell to provide affordable and secure energy while working towards lower-carbon solutions and a transition to a net-zero emissions business.
Since assuming his role in January, Sawan has focused on improving Shell’s operational performance and profitability by placing more emphasis on traditional oil and gas operations, biofuels, and electric vehicle charging. This shift has seen Shell exit offshore wind projects in Ireland and France, divest its UK power retail business, and explore the sale of stakes in renewable projects in India. The possibility of selling part or all of the Sonnen battery storage company, acquired in 2019, is also being considered.
A Shell spokesperson expressed admiration for their staff’s engagement and passion for both the energy transition and the company’s role in it. They highlighted Shell’s significant role in addressing the energy transition and outlined the areas where the company is best positioned to invest and succeed in the current and future energy system.
Amidst this strategic shift, several senior executives have left the low-carbon and renewables division, including Oliver Bishop, Roberto Jimenez, and Colin Crooks. Oliver Bishop, who previously led Shell’s global hydrogen mobility business, has joined BP in a similar role.
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