BP to expand emissions disclosure on oil investments

Adjust Comment Print

The group says it involves 300 investors with $32 trillion in assets. They include major public employee retirement funds Hermes EOS, Aviva Investors and Legal & General Investment Management. Over the past year, a large number of companies have claimed their operations are in line with Paris goals while only committing to reduce operational emissions. We are determined to advance the energy transition while also growing shareholder value, ' said Helge Lund, BP's chairman. We believe our strategy is consistent with the Paris goals, ' said Lund. And it would have to set out its anticipated levels of investment in oil, gas and other energy technologies, its goals for reducing operational greenhouse gas emissions, the estimated carbon intensity of its energy products, and how its targets are linked to executive pay.

BP has agreed to broaden its disclosure on greenhouse gas emissions to show how it thinks future investments in oil and gas align with United Nations -backed climate goals, it said on Friday.

BP also has joined Shell in linking remuneration for its staff to the company's greenhouse gas emissions.

More news: Nissan 'U-turn' expected on new X-Trail SUV in Sunderland

It said that the oil major will need to describe how its strategy is consistent with the climate change target that was set out in 2015.

CDP recently criticised the fact that BP has only made short-term decarbonisations targets which do not cover the firm's Scope 3 (indirect) emissions, for example, while former BP adviser and current E3G chair Tom Burke dubbed the strategy a "twentieth-century solution to a twenty-first-century problem".

He added that it will promise transparency around the climate goals of the company.

More news: Gigantic cavity in Antarctic glacier signals rapid decay

"Investors remain concerned that [BP] has not yet demonstrated that its strategy, which includes growth in oil and gas as well as pursuing low carbon businesses, is consistent with the Paris goals", Climate Action 100+ said in a statement. The resolution calls for the company to disclose "any" link between carbon targets and bonuses paid to BP's bosses. "It's encouraging to see major companies such as BP moving in the right direction". The company agreed four years ago to be more transparent about reporting on climate risks.

The Follow This proposal specified emission targets and metrics, based on the Paris accord, to be able to track the company's contribution to helping minimize climate change.

BP today said it had decided not to support the Follow This resolution.

More news: Sauber renamed Alfa Romeo for 2019 season

The Climate Action 100+ initiative is a five-year movement led by investors to engage greenhouse gas emitting companies to help achieve the Paris Agreement.