Partner in change

Mr Brekelmans, Shell aims to become an industry trailblazer by achieving a neutral CO2 balance by theyear 2050. Why this radical change in strategy?

Brekelmans: I’ve been working at Shell for more than 30 years and during this time I’ve experienced the company as highly dynamic. Change is nothing new for Shell. Time and again, we have turned to new fields of business and developed new technologies – and ensured their financial viability, such as with the introduction of biofuels and the exploration of hydrogen power. This attitude has made us one of the world’s leading energy companies. The transition to a neutral CO2 balance by the year 2050 is nevertheless a very big task. We’re taking on this transition because it is what society, our stakeholders and our customers want. And we will shape it in constant dialog with these same interest groups.

What is the biggest challenge with this transition?

Brekelmans: There are a number of challenges here. One key question is certainly timing. If the company changes too quickly, on the one hand it could put us at an economic disadvantage with respect to our competitors and we then fall behind the global competition. In the end, perhaps we would lack the stamina to bring the transition to a successful conclusion. On the other hand, if we act too slowly, it could potentially jeopardize the actual goal. Such are the tensions under which we operate, and that’s precisely why we want to press ahead with the transformation in line with the expectations of society and our stakeholders.

How did Shell convince its shareholders and the workforce of the new strategy?

Brekelmans: I believe this comes down to having a very logical and easy to understand approach. We have always tried to understand the world around us by listening to our stakeholders, writing scenarios and carrying out studies. Based on this, the Board of Directors and the Executive Committee develop the frame of reference. An important aspect is that when defining the future energy world, we have to think backwards in terms of what the customers need, rather than extrapolate forward based on assumptions about the available resources. We also have to ask ourselves what forms of energy our customers will in future prefer if they want to see more climate protection at the same time. Another important aspect is the realization that while we need more and cleaner energy, global energy demand will continue to grow.

What technologies are the major actors in your strategy?

Brekelmans: Innovative technologies such as biofuels, hydrogen and atmospheric CO2 capture feature large in most scenarios. But at this point in time, I would not emphasize any single technology. What’s decisive is not the technology itself, but its scalability. With existing technologies we can make considerable progress toward our net-zero goal. Yet all that depends on leveraging the necessary economies of scale. This is where Shell has always performed well, and we must continue to work on that.

Conversely, could Endress+Hauser also use Shell products in its decarbonization strategy?

Altendorf: I can well imagine Shell one day providing our company with green energy, even though we don’t have extraordinarily high demand in our production. But of course there is demand in our office buildings and our supply chain. At some locations we are currently producing the energy we need on our own, with the help of natural gas. We could eventually convert these cogeneration units over to synthetic, climate-neutral natural gas or green hydrogen from Shell.

A personal question before we wrap up: how do you make a commitment to more climate protection in your private life?

Brekelmans: My family understands the special responsibility my job carries. I have frequent conversations with both my children and my wife about the energy transition and climate protection. We try to create as few greenhouse gases as possible, even though we still drive a combustion engine vehicle from time to time privately. We use electricity from renewable sources and keep a conscious eye on the climate impact of the food we eat. We have set ourselves a goal of being CO2-negative within the coming years.

Altendorf: I often have these kinds of conversations with my 24-year-old son. I currently drive a hybrid vehicle, which can operate fully electric on the commute to work, and I frequently take the train for medium-distance travel. Furthermore, the roof on our house is decked out with solar panels. In terms of my overall balance, I have the advantage of owning a few hectares of woodland, which I tend to and maintain myself. I enjoy working there. That’s my personal carbon capture strategy. Ultimately, forests are the most natural way to draw CO2 out of the atmosphere.