Wednesday, June 30, 2010

Saving the Planet

It is great to see lots of attention in the Shell Group nowadays to the whole sustainability area. The four "must win battles", a concerted effort at Biofuel leadership, some money behind achieving energy efficiency, rapid acceleration in carbon capture and sequestration, there has surely been a tipping point over the last twelve months. Just read the material from our CEO if you have any doubt. Watch the reaction to our new scenarios, and be clear that for the first time in years the world is genuinely interested.

Why is this good? Three overlapping reasons.

Reason one is as a global citizen with an 18-year-old daughter. This challenge is real, time we all did our duty for the generations to come.

Reason two is as a motivator of staff, especially newer and younger staff. Whenever 18-year-olds talk about anything that isn't shopping or boys or fashion or whatever, it is about climate change and the environment. It is universal in that age range, and a heavy majority all the way up to 30, at least in Europe, and I believe in Asia too. Especially in GS, our staff are passionate about technology, and here is a technology challenge we can make a difference with, across many of our different disciplines as well. As we aim to Grow East and attract the best talent, the sustainability topic has to take centre stage. Sometimes I wonder if our own leaders really understand the depth of feeling in our own staff about technology generally and sustainable technology in particular.

Reason three is about competitive advantage for Shell. Never have I seen such a wide open playing field. In business wide open playing fields create winners (and losers). And, currently, there are no players on the pitch with the strengths of Shell. OK, so we are not very sure ourselves yet of our competences, or even the rules of the game we are playing. But, heck, the game is a big one and no-one else knows the rules yet either. We can write them!

I was at a meeting last week with various GS and other Shell staff about the whole CO2/energy agenda. Wonderful, a team of people with passion coming together. But I don't think I've ever been at a meeting with more people talking at cross-purposes, more confusion over ways forward, more dimensions in play. One guy was wondering how to spend his budget this quarter, another looked forward to when CO2 might be short rather than long! Wow! And exciting, because other companies, in all their spheres, are having similar discussions, waiting for the rules to be written. There is the stuff of opportunity. Just last week we saw massive new biofuel investments in China and elsewhere, coinciding with a call from a UK parliamentary body to ban biofuels! There is such ignorance and uncertainty, that anyone able to provide credible comparisons and metrics and thought leadership has a major chance to shape the future...their own and the planets.

While I'm happy that Shell has woken up to this, I still worry that our engineering mindset and cautious approach and our lack of comfort with working with partners will hold us back. Shell on its own cannot credibly define the rules of this game - we have baggage that prevents it. But a grand coalition with players from other industries (GE?) and other fields (The Economist?) might be able to pull it off. I fear we are playing defence here. At least that is better than not playing at all. But what about a grand play on offence? Have we got what it takes?

What a competitive play! What a recruitment and retention sergeant! And what a way to leave Shell's mark on the sustainability of future generations!

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