It seems that BP, the energy giant, has bowed to the intensifying pressure from investors, including the Church of England as the company announces that will get behind a shareholder effort which would require the company to work towards the objectives of the Paris climate change agreement.
The oil and gas company that is based in the United Kingdom supported a resolution that was put forward by a group of shareholders including the investment arms of Legal & General, the C of E, and HSBC. It forced it to be more transparent on climate change.
It said that the oil major will need to describe how its strategy is consistent with the climate change target that was set out in 2015.
Helge Lund, the chairman of the company, stated: “BP is committed to helping solve the dual challenge of providing more energy with fewer emissions. We are determined to advance the energy transition while also growing shareholder value. We believe our strategy is consistent with the Paris goals.”
He said that the reporting will “build on BP’s history of progressive action in this area”. He added that it will promise transparency around the climate goals of the company.
Lund stated: “Only by remaining a world-class investment can we most effectively play our part in advancing a low carbon future.”
Meanwhile, BP also said that it would be rewarding its 36,000 employees, including its senior management, for their efforts to reduce greenhouse gas emissions.
The chief executive for the Institutional Investors Group on Climate Change, Stephanie Pfeifer was the one who pushed for the said motion. He stated: “Investors are helping ensure climate change is firmly on the boardroom agenda, which is especially important for the oil and gas sector. It’s encouraging to see major companies such as BP moving in the right direction.”
She added: “Global carbon emissions need to be reduced urgently and investors expect other companies in the sector to follow suit.”