Former BHP boss Andrew Mackenzie to chair energy giant Shell
Former BHP boss Andrew Mackenzie has been named chairman of energy giant Shell.
Former BHP boss Andrew Mackenzie has been named chairman of Shell, one of Australia’s biggest foreign investors, and an energy giant under growing investor pressure to battle climate change.
Mr Mackenzie, who joined Shell’s board in October 2020, will succeed Chad Holliday from May 18.
The Scottish executive led BHP for seven years before stepping down in 2019 and prior to that held roles at Rio Tinto and BP, one of Shell’s chief competitors.
He takes over the chairman’s role at a pivotal moment for the Anglo-Dutch oil and gas major which recently conceded its oil production would slowly decline after peaking in 2019.
While Shell’s earnings are dominated by oil and gas currently, it wants to gradually shift the weight of its investment dollars to lower-carbon sources to reflect its prediction the energy system will rely much more on electricity rather than fossil fuels for its generation.
The oil major set an ambition in 2020 to cut greenhouse gas emissions to net zero by 2050 amid one of the biggest downturns in the oil market seen in decades.
Mr Mackenzie grabbed his own headlines at BHP two years ago where he warned of an “existential” risk from the impact that fossil fuels could have on the earth’s climate.
The mining major under his watch hatched plans to extend its climate change policy to include monitoring and trying to influence the carbon emissions of its customers, tying its executive pay packets to the success of reducing greenhouse gas emissions.
Investors are demanding greater accountability from fossil fuel producers to account for climate change with the previously fringe idea of oil and gas assets becoming stranded now regarded as a rising risk for energy operators.
“I have been delighted already to have played a part in the shaping of the compelling strategy that Shell has recently unveiled,” Mr Mackenzie said on Thursday.
“I believe Shell has an exceptional portfolio of future-facing assets and I look forward to working with Ben van Beurden and the Board to profitably accelerate Shell’s transition into a net-zero emissions energy business that continues to generate substantial value for shareholders, customers and communities alike.”
Shell is one of the dominant players in Australia’s booming energy sector, operating the QCLNG export plant in Queensland, the Prelude floating LNG project off northern Australia along with stakes in Western Australia’s North West Shelf, Gorgon, and Browse LNG ventures and gas business Arrow.
Mr van Beurden referenced the energy major’s strategy shift, a big priority for the ex-BHP chief in his new role as chairman.
“We are emerging from the COVID-19 pandemic with a clear and distinct strategy that I believe will enable us to seize the opportunities presented by the energy transition. I cannot think of anyone better than Andrew to take this role.”