Affordability is main challenge in energy transition, Shell CEO says

(Bloomberg) – Shell Plc Chief Executive Officer Wael Sawan told the company’s staff that he “believes in urgent climate action,” while shifting focus toward its core oil and gas businesses.

The challenge in the transition to cleaner energy sources is affordability, Sawan said in an internal townhall meeting on Tuesday, according to people who attended.

Under Sawan, who took the top job in January, Shell is refocusing on its core oil and gas business in an effort to improve returns to investors.

Shell confirmed that Sawan spoke in a company townhall today. He told staff that the company’s strategy hadn’t changed, but that the way it is delivered has.

The shift toward fossil fuels has been welcomed by many investors. The company’s shares hit a record high on Monday.

“This is the shareholders’ money,” Sawan said in the townhall. “We need to earn the right to spend this.”

Shell encouraged employees to share questions and comments on an internal forum ahead of the gathering.