A majority of BP shareholders voted against a resolution tabled by Dutch activist investor group Follow This demanding that the supermajor increase its emission reduction commitments.
About 80% voted against the resolution. Follow This and others noted, however, that the 20.7% who voted in favor of the new goals was double the support that a similar resolution received last year.
“Once again, responsible investors have given a clear signal to BP’s board of directors,” said Follow This’ Mark van Baal, who tabled the resolution. “They say we no longer accept empty promises for the distant future, we need you to act now.”
According to the activist shareholder group, BP’s business plans imply an increase in emissions by 2030, despite the fact that it has pledged to cut oil production by 40% and pledged to invest much more in renewable energies.
“In 2019, 8% forced BP to set emission reduction ambitions for its product (Scope 3). It is hoped that today’s 21% will force BP to advance these ambitions towards Paris-compliant emission reduction targets and, therefore, shift investments from fossil fuels to renewable energies, ”Follow also said. This in a press release after the vote.
“We will continue to engage with shareholders on our strategy, goals and objectives to ensure their views are fully understood,” BP mentionned, quoted by City AM, after the meeting, with chief executive Bernard Looney noting: “There is no single path to Paris and there is no single metric that measures the consistency of Paris.
According to BP, if the Follow This resolution had been approved by a majority of shareholders, it would have disrupted the company’s business plans and forced it to “go back to the drawing board.”
Follow This agreed: “This is exactly what shareholders should be asking BP by voting for Resolution 13: BP should go back to the drawing board and disrupt its current business plans which involve increased emissions.”
By Irina Slav for Oil Octobers
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