BP shareholders reject proposals to reduce climate emissions Business News

BP shareholders have rejected proposals for tougher emissions targets, which aim to limit global warming to well below 2 ° C above pre-industrial levels.

Eighty percent voted against the measure, which called for the oil giant to set short- and long-term targets on emissions and its use of energy products.

The board had urged shareholders to vote against the proposals put forward by Follow This, an activist investor.

Despite the majority vote against the resolution at Wednesday’s AGM, Mark van Ball of the Dutch climate group said “responsible investors” had “given a clear signal” to the company’s board of directors.

“They say we no longer accept empty promises for the distant future, we need you to act now.”

He said on Wednesday: “In 2019, 8% forced BP to set emission reduction ambitions for its product.

“Today’s 21 percent will hopefully force BP to advance those ambitions towards Paris-compliant emission reduction targets and, therefore, shift investment from fossil fuels to renewables.”

After the vote, the oil giant said it recognizes 20% are in favor of the resolution and will continue to work with shareholders on strategy, goals and targets.

The BP board’s recommendation not to vote for the proposals indicated that the oil giant had set a goal of being net zero by 2050.

“The board and management team believe it is time for the company to focus on execution and delivery, rather than revisiting goals and objectives, as the resolution would require, if it is adopted, ”he said.

“We strongly believe that such intervention in strategy at this point would delay the achievement of BP’s net zero ambition and investor proposition.”

The board said BP had defined a strategy consistent with the Paris targets.

“The board welcomes Follow This’s expression of support for BP’s ambition, goals and net zero targets and agrees on the need to meet the Paris goals,” he said. “However, this resolution would have a negative impact on BP’s ability to implement its strategy consistent with Paris and its shareholder value.”

According to the proposals put forward by Follow This, the company should set and publish targets in line with the 2015 Paris Agreement target, which aims to limit global alert to well below 2C – preferably 1.5C – compared to pre-industrial levels.

He wanted the quantitative targets to cover short-, medium- and long-term greenhouse gas emissions from BP’s activities and the use of its energy products.

Mr van Ball of Follow This said: “Big oil companies rarely take the initiative to move on their own. Shareholders must force them to set goals and support them to achieve those goals. “

Last year, BP set a goal of becoming net zero by 2050 or sooner as part of a plan to “fundamentally reorganize” its business to tackle the climate crisis, shortly after Bernerd Loone has taken over as the new Managing Director.

After taking office, Mr. Loone set out a vision to transform the company into a “thriving sustainable energy company”.

BP also presented plans last year to reduce investment in fossil fuels over the next decade.

More about this article: Read More
This notice was published: 2021-05-13 08:43:05