GHG Emissions, Industrial - February 1, 2019
BP to align strategy to Paris goals
The board of BP LLC agreed to back a shareholder resolution at its annual meeting later this year that will require the company will be required to fully adapt its business strategy to the Paris Agreement goals, including setting GHG reduction targets and linking results with executive compensation.
The move is the result of pressure from the global Climate Action 100+ initiative, a group of more than 300 institutional investors who have engaged companies on improving their emissions and bolstering climate-risk and climate-related financial disclosures. A report by MarketWatch noted, “The group has considerable financial clout, managing more than $32 trillion in assets collectively.”
“This is a welcome step by BP, which will hopefully lead to more action on climate change by others in the oil and gas sector,” said Emma Herd, a member of the global Climate Action 100+ Steering Committee and CEO, Investor Group on Climate (IGCC). BP shareholders had previously passed a motion in 2015 that asked the company to improve its corporate reporting and transparency on climate change-related risks.
BP joins Shell, which announced plans to link executive pay to the meeting of energy targets in December 2018 in response to Climate Action 100+.