EXTRA: BP Follows Shell In Promising To Open Up On Climate Initiatives


BP has interpreted this recommendation by pledging to link the bonuses of 36,000 of its workers to the progress it makes towards its climate targets - a move which will be voted on at the AGM.

A large group of investors, including Aviva, Hermes, Legal & General and the Church of England's investment fund, have been pressuring BP and other oil groups on the issue for several years.

This disclosure will be a part of BP's annual reports from 2019.

Oil and gas majors in Europe and the U.S. have gradually bowed to shareholder pressure in recent years to give more information on how climate change affects their business, and set goals for reducing their emissions. Follow This wanted to force the company to set a goal for scope 3 emissions, which BP said was too prescriptive.

The company has also been told to justify how capital expenditure in fossil fuel projects was consistent with the landmark climate deal, and set new metrics and targets.

Chairman Helge Lund said: "BP is committed to helping solve the dual challenge of providing more energy with fewer emissions". The energy giant said the BP board has chose to support the proposed resolution, which will be put to shareholders at the company's annual general meeting in May 2019.

A group of major European investors has secured the backing of BP for a shareholder resolution calling on the oil and gas major to do more to explain how its strategy is consistent with internationally-agreed climate change goals.

"In accordance with the proposed resolution BP will describe how its strategy is consistent with the Paris goals, as well as setting out a range of additional related reporting", the company said in a statement this morning.

Shell, for example, said past year that it would start linking executive pay to short-term carbon emissions targets in 2020 after coming under pressure from shareholders including the Church of England. BP introduced a plan past year that sets near-term emissions goals for its operations. "It's encouraging to see major companies such as BP moving in the right direction".

"The goal of the Paris Climate Agreement is to limit global warming to well below 2°C above pre-industrial levels, to aim for a global net-zero-emission energy system", Follow This added. "This is a great example of investors and BP committing to the goal of building a low carbon future".

However, the company has faced much criticism regarding the specifics of its AET strategy - or lack thereof. The group joins a growing list of oil giants obliged to defer to investor pressure on climate change. "We welcome the constructive engagement with Climate Action 100+ and, after careful consideration, have made a decision to support this resolution".