BP urges shareholders to oppose climate resolution
BP's board has urged shareholders to oppose a resolution proposed by activist investor Follow This, dismissing it as "unclear, generic and disruptive."
Resolution 24 calls on BP to set and publish climate targets in line with the Paris Agreement to keep global warming at well below 2oC above pre-industrial levels and strive to limit it to 1.5oC. These targets should cover Scope 1, 2 and 3 emissions, and the resolution also urges BP to report on the strategy and policies for reaching these goals on at least an annual basis.
BP's board said shareholders should vote down the resolution at the annual general meeting scheduled for May, "because it is unclear, generic, disruptive and would create confusion as to board and shareholder accountabilities. Therefore it threatens long-term value creation."
The UK major said it was unclear what the resolution was requesting as the company already has a net-zero ambition in line with Paris goals, had targets for Scope 1, 2 and 3 emissions, and already provided regular updates on progress and performance. It also said the resolution was mostly the same as one that Follow This submitted last year that almost 80% of shareholders rejected.
"It makes no attempt to reflect the acceleration of our ambition nor the strong progress the company is already making – delivering long-term value for our shareholders and other stakeholders through the safe, efficient execution of our strategy," BP said. The company said its investors already supported the strategy already in place, and that the resolution sought to remove the board's control over BP's climate path.
BP is targeting a 20% cut in Scope 1, 2 and 3 emissions by 2025, versus a 2019 baseline. It has committed to lowering Scope 1 and 2 emissions by a 30-35% compared with the baseline by 2030, and Scope 3 emissions by 35-40% by 2030, and bring all emissions to net zero by 2050.