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BP targeted with first shareholder resolution on climate goals

Mon, 10th Dec 2018 00:00

* Follow This tables resolution with BP and Shell

* Organisation says might also target Exxon, Chevron

* Resolution calls for reduction targets for all emissions

By Ron Bousso

LONDON, Dec 10 (Reuters) - Pressure on oil companies totackle climate change is growing after an activist group for thefirst time filed a shareholder resolution urging BP toset hard targets for reducing overall carbon emissions.

Follow This, a Dutch organisation that spearheaded a numberof climate shareholder resolutions at Royal Dutch Shell'sAGMs over the past three years said it also filed onewith the Anglo-Dutch company for 2019.

It also plans to file a resolution with U.S. rivals ExxonMobil and Chevron "unless other parties file asimilar resolution," it said in a statement.

The 2019 resolution calls on the companies to set andpublish targets for the reduction of carbon emissions in linewith the 2015 Paris Climate Accords to limit global warming to 2degrees Celsius by the end of the century.

The targets should include emissions from the drilling andrefining operations as well as for the burning of fuels andproducts such as plastics which are sold to millions ofcustomers around the world, known as Scope 3 emissions.

BP CEO Bob Dudley has repeatedly opposed setting targets forScope 3 emission reduction.

It calls on the companies to set clear metrics to measuregreenhouse gas emissions and disclose information on progress.

"Targets should be on the agenda of every oil company, giventhat the oil industry can make or break the Paris ClimateAgreement," said Follow This founder Mark van Baal.

BP and Shell confirmed the resolutions had been filed.

BP "will consider the resolution carefully and make aresponse and recommendation to our shareholders as part of ourNotice of Meeting prior to the AGM," a spokesman said.

A Shell spokeswoman said the Follow This resolution was"unnecessary" after the company last week announced plans to setsector-leading emission targets that will be linked to executivepay and include Scope 3 emissions.

The announcement, which followed extensive discussions withinvestors, marked a reversal for Chief Executive Officer Ben vanBeurden who had previously opposed setting targets.

"We are planning short-term targets for the net carbonfootprint of our energy products. This will allow us todemonstrate clear progress towards our long-term ambition inthis area," Shell said.

Shell's board has consistently opposed the Follow Thisresolutions which were voted down with less than 6.34 percent ofthe vote since 2015.

In the 2018 AGM, the discussion around the resolutionhowever led to a heated debate between van Beurden and van Baal.

BP earlier this year announced plans to keep emissions flatover the decade to 2025, which are nevertheless limited to itsown operations.

BP has faced several shareholder resolutions in the pastfocused mostly on emissions disclosure.(Reporting by Ron Bousso; editing by David Evans)

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