Shell chief executive Wael Sawan (pictured) plans to make the oil and gas giant more selective about how it invests in renewables projects.
In an interview with the Financial Times, he said Shell would no longer “pretend to lead” in parts of the energy transition where it did not have the right competencies and capabilities.
In areas where Shell lacks a unique capability, such as renewable power generation, it would aim to work with partners or not invest at all, Sawan said.
He told the newspaper: “This is really much more of a selective approach to where we are going to lead.”
Since taking the helm January, Sawan has outlined plans to trimming less profitable parts of the company’s low-carbon portfolio established under his predecessor Ben van Beurden.
He told the Financial Times: “We need to get leaner, we need to get more focused, we need to get more disciplined.
“That inevitably will include choices around where we are going to operate but also importantly how we operate.”
Last month Shell confirmed it would cut 200 jobs in its low-carbon solutions division and place another 130 positions under review, representing at least 15% of the workforce in that unit.
The cuts followed a decision to scale back the company’s work on hydrogen technology for passenger cars to focus on hydrogen for heavy goods vehicles and industry.
Shell is building Europe’s largest green hydrogen production plant in the Netherlands.