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BP joins Shell in making plans to combat climate change

BP will give bonuses to employees, including senior management, for efforts to reduce greenhouse gas emissions
BP has vowed to address the 'challenge of providing more energy with fewer emissions'

BP PLC (LON:BP) has agreed to align its business more closely with the goals of the 2015 Paris climate change agreement.

The oil giant has supported a resolution to explain how its strategy and investments are consistent with the Paris deal targets. The resolution came from Climate Action 100 +, a group of 320 investors such as the investment arms of HSBC Holdings PLC (LON:HSBA), Legal & General Group PLC (LON:LGEN) and the C of E.

READ: Easy paydays are over for big oil majors but Deutsche Bank sees upside for BP

“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,” chairman Helge Lund said.

BP will advise shareholders to back the resolution at an AGM in May. The proposal calls for the company to publish a business strategy in line with two of the Paris climate change agreement goals by the end of the 2019 financial year. These include holding temperature rises to well below 2C and reducing carbon emissions to net zero by the second half of the century.

However, BP encouraged investors to reject a stricter climate resolution brought by Dutch shareholder activist group, Follow This. Follow This wanted to force the company to set a goal for scope 3 emissions, which BP said was too prescriptive.

Meanwhile, BP will give bonuses to employees, including senior management, for efforts to reduce greenhouse gas emissions.

Sector peer Royal Dutch Shell PLC (LON:RSDB) has announced similar plans to combat climate change. Shell in December said it would aim to reduce its net carbon footprint to around half by 2050 and by 20% as an initial step by 2035. It will also link remuneration for its staff to the company's greenhouse gas emissions.

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