BP Refuses Resolution To Set ‘Scope 3’ Emissions Targets

BP Refuses Resolution To Set ‘Scope 3’ Emissions Targets
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99% of BP plc (NYSE:BP) Shareholders Support Climate Change Resolution, But Oil Giant Opposes Second Resolution Asking to Set ‘Scope 3’ Emissions Targets

OAKLAND, CA—May 21, 2019—Today, 99 percent of BP shareholders voted in support of a resolution drafted by Climate Action 100+, a group of 300 investors with more than $33 trillion in assets under management, calling for the oil giant to align its business strategy with the 2015 Paris Agreement. The global accord aims to keep global warming “well below” 2 degrees Celsius.

The resolution asked BP to report how its business strategy is consistent with the goals of the Paris Agreement, including:

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  • How the company evaluates new capital expenditures to be aligned with the Paris Agreement
  • What metrics and targets have been set to be consistent with those goals for reducing emissions to below 2°Celsius, below pre-industrial levels
  • Reporting on the estimated carbon intensity of BP’s energy products
  • Linking its climate targets with executive pay

Danielle Fugere, president of As You Sow, had this to say about today’s vote:

“Today’s vote signals clear and uncompromising investor intent that BP take immediate and critical action to reduce its climate change emissions. Those reductions must be aligned with Paris goals designed to maintain global temperatures at levels that avoid catastrophic impacts. The vote signals that time for action is short and business-as-usual is unacceptable.

“To be aligned with Paris goals means adopting fundamental changes in the way business is done across the full scope of its activities — from operational emissions, to invested emissions, and product emissions. To align with Paris goals, BP will need to adopt clean energy production, further diversify its business, shrink current investments in oil and gas development, adopt a combination of these actions, or otherwise reduce its full range of greenhouse gas emissions.”

BP opposed a second, stronger climate proposal today asking for targets on “Scope 3” emissions — which are emissions from use of its products.

“Unfortunately, the company refuses to follow Shell’s lead in taking responsibility for product emissions. Shell is the only major oil and gas company that has set a target to reduce the intensity of its ‘Scope 3’ emissions,” Fugere said. “While Shell has only agreed to relative reductions in ‘Scope 3’ emissions, not absolute reductions as needed to achieve the Paris goal — BP has so far refused to address emissions from its products at all, a position that makes Paris compliance impossible to achieve.”

For more information on As You Sow’s work on climate change, click here.

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
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