BP shareholders demand tighter climate policy
April 15, 2023
Follow This has urged shareholders to support its proposal to align BP’s climate policy with the Paris Agreement after the oil giant lowered targets earlier this year.
Ahead of BP’s annual shareholder meeting on April 27, the climate activist group has filed resolution 25 to require the company to include Scope 3 emissions in its existing 2030 reductions target.
BP’s previous climate policy aimed to reduce Scope 3 emissions by 35%-40% by 2030. However, these targets were lowered to 20%-30% in February.
The proposal would ensure BP’s energy agenda is in line with the Paris Agreement, which aims to prevent global temperatures rising more than 1.5°C above pre-industrial levels.
In BP’s notice of AGM 2023, Follow This said: “Because the company’s existing aims covering Scope 3 do not equate to Paris-aligned targets for all BP’s Scope 3 emissions by 2030, we support the company to advance these aims.”
The proposal was first introduced in March, when Follow This filed the same resolution against the world’s other largest oil and gas companies, including Shell, Chevron, and Exxon Mobil.
BP has urged shareholders to oppose the proposal because “it is unclear, it encroaches on the board’s accountability to set the company’s strategy, and it is simplistic and disruptive.”
Major investor advisers ISS and Glass Lewis have also encouraged BP shareholders to vote against the resolution tabled by Follow This.
However, investors, including the National Employment Savings Trust and Universities Superannuation Scheme, have expressed support for the proposal.
Resolution 25 has also been categorised as a ‘special resolution’, so at least 75% of votes must be in favour of the resolution for it to be passed.
Investors are also expected to vote against the re-election of BP’s chairman Helge Lund during the annual shareholder meeting.
LGPS Central, Border to Coast and Brunel Pension Partnership revealed plans to oppose Lund’s re-election in protest of BP’s decision to lower emission reduction targets.
Last Updated: 26 April 2023