Shell PLC (LSE:SHEL, NYSE:SHEL) is to axe around a fifth of its mergers and acquisitions team ahead of an expected announcement that it is cutting back on its green commitments.
According to the report in Bloomberg, Shell has told its M&A team to expect a significant reduction in headcount with the details to be released in April.
Making Shell more efficient is one of chief executive Wael Swan’s strategic goals for the oil and gas giant, with its operating rations lagging well behind those of its US peers in particular.
Sawan has also been reining back on the green commitments of his predecessor, with the focus turning towards maximising returns from its fossil fuel operations.
Shell is due to publish an update on its long-term plan for clean energy and greenhouse gas emissions, according to insiders quoted by Bloomberg.
Ben van Beurden, Shell’s previous chief executive, committed to reducing net carbon intensity by 20% in 2030 compared to 2016, by 45% in 2035 and to reach net zero in 2050.
“We look forward to publishing our Energy Transition Strategy report on 14 March,” a Shell spokesperson said.
The publication “will contain details of our plans to become a net zero emissions energy business by 2050.”
Like Shell, the oil groups have been slowing the pace of their switch away from fossil fuels due to a backlash by certain investors against the pressure being imposed on firms by ESG requirements.
Sawan has said repeatedly that his priority is to deliver greater value for Shell investors, which so far has seen it boost dividends and buybacks, cut staff and refocus on its core oil and gas businesses.
Shares in Shell were up 0.5% at 2,510p.