BP will report more about its company strategy to align with the Paris Agreement that calls for steep reductions in greenhouse gas emissions to fight climate change.
The London-based energy giant, one of the largest industrial employers around Northwest Indiana's lakeshore, announced it plans to support the Climate Action 100+ investor group's call to better outline how its strategy is consistent with the aims of the Paris Agreement. Climate Action 100+, which represents more than 300 investors with more than $32 trillion in assets under management, pushed for greater corporate reporting on greenhouse gases.
“BP is committed to helping solve the dual challenge of providing more energy with fewer emissions," BP Chairman Helge Lund said. "We are determined to advance the energy transition while also growing shareholder value. We believe our strategy is consistent with the Paris goals. The additional reporting specified in the resolution will build on BP’s history of progressive action in this area. We welcome the constructive engagement with Climate Action 100+ and, after careful consideration, have decided to support this resolution.”
BP said it acknowledged climate change more than 20 years ago and has been working to provide more energy to customers with fewer emissions. It is working to reduce 3.5 million tons of emissions from its operations by 2015.
“This additional reporting will give investors better clarity about how BP can continue to deliver value through the energy transition in a way consistent with the Paris goals,” Lund said. “We will be open and transparent about our ambitions and targets as well as our progress against them. We recognize that the trust of our shareholders, and society more widely, is essential to BP remaining an attractive and reliable long-term investment. And only by remaining a world-class investment can we most effectively play our part in advancing a low carbon future.”
As You Sow, an environmental group from California, said BP needs to follow up with concrete action and still hasn't said exactly what it will report.
“BP today announced that it will report on how it is aligning its strategy with Paris goals. To be aligned with Paris goals means adopting fundamental changes in the way business is done across the full scope of its activities — including reducing operational emissions, invested emissions and product emissions," As You Sow President Danielle Fugere said. "To align with Paris, BP would have to diversify into clean energy production, shrink current investments in oil and gas development, or otherwise reduce its full range greenhouse gas emissions. Is it doing so? We will stay tuned."
BP has been investing more in alternative energies in recent years and is tying bonuses toward progress toward carbon reductions.
“Meeting the world’s growing demands for energy while also greatly reducing emissions will require more than rapidly growing renewables — all forms of energy must be made cleaner, better and kinder to the planet," CEO Bob Dudley said. "This is why our people are already in action across BP, seeking opportunities to reduce our emissions, improve our products and create new low carbon businesses. Building an emissions reduction target into the reward of people throughout BP further underlines the importance we place on this work. We expect it will catalyze even more ideas and activity and support BP playing our part in addressing the dual challenge.”