Published: Sun, February 03, 2019
Business | By Eloise Houston

BP Backs Shareholder Climate Proposal

BP Backs Shareholder Climate Proposal

"Greenhouse gas emissions reductions have now been included as a factor in the reward of 36,000 employees across the group and around the world, including executive directors", the company said.

BP has agreed to come clean on how its corporate strategy matches its pledge to meet the Paris climate change agreement. They include Hermes EOS, Aviva Investors and Legal and General Investment Management.

BP's linkage of its goals with compensation is important, but details about that compensation also remain to be disclosed.

It comes after the Climate Action 100+ initiative - which represents 320 investors managing more than $32 trillion (£24tn) of assets - proposed a resolution to be put to shareholders at the energy giant's annual generation meeting (AGM) this May.

He said that the reporting will "build on BP's history of progressive action in this area".

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. We are determined to advance the energy transition while also growing shareholder value, ' said Helge Lund, BP's chairman.

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

Shell provides an example of a company moving in the right direction toward alignment with Paris goals by setting a target to reduce the intensity of emissions from of its products (Scope 3).

Follow This describes itself as "a group of responsible shareholders in oil and gas companies" that organizes shareholder support to commit to the goal of the Paris Climate Agreement to limit global warming to below 2 degrees Celsius.

British Petroleum (BP) has vowed to to link executive pay to its reduction in carbon emissions.

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.

Investors and environmentalists welcomed BP's announcement, while stressing they will continue to monitor its climate performance.

However, the company has faced much criticism regarding the specifics of its AET strategy - or lack thereof.

BP on Friday announced it plans to increase disclosure on its efforts to fight climate change after requests from two groups of investors.

While that set quite detailed and short-range targets for Shell to reduce its overall net emissions, Duguid explained, BP's approach should allow shareholders to review each and every business investment by the company. "We welcome the constructive engagement with Climate Action 100+ and, after careful consideration, have made a decision to support this resolution".

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