BP Calls on Investors to Reject Emissions-Targets Proposal
April 10 2019 - 12:13PM
Dow Jones News
By Maitane Sardon
BP PLC (BP.LN) has called on its shareholders to reject a
climate resolution filed by activist investor Follow This that
requests it to set targets for emissions from the consumers of its
products.
In the notice of annual general meeting distributed today to
shareholders, the BP board opposed the resolution filed by the
Netherlands-based group of some 4,600 shareholders that urges
oil-and-gas companies to set long-term targets in line with the
Paris Agreement.
The British oil-and-gas company said it did not support the
resolution because it calls for targets for "Scope 3" emissions
that BP said it does not control. Scope 3 emissions are indirect
emissions from sources such as capital goods, business travel,
franchises and use of sold products--in this case use of fuel by
BP's customers.
While BP's competitor Royal Dutch Shell (RDSB.LN) had previously
accepted the same resolution and set targets for end-user
emissions, BP said setting specific long-term reduction targets is
inconsistent with its flexibility.
Quantitative targets, BP said, could significantly inhibit its
ability to deliver shareholder value by limiting "future portfolio
choices."
"An oil-and-gas company without targets for its products can
never prove to be aligned with the Paris Climate Agreement," said
Follow This member Mark van Baal.
Climate resolutions remain on the agendas for the AGMs of
Equinor ASA (EQNR.OS) and Chevron Corp. (CVX), which Mr. van Baal
said have not yet accepted responsibility for the emissions of
their products.
Write to Maitane Sardon at maitane.sardon@dowjones.com
(END) Dow Jones Newswires
April 10, 2019 11:58 ET (15:58 GMT)
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