* BP agrees to back shareholder resolution on climate
* Firm to show how future investment will meet climate goals
* BP, investors differ on whether strategy meets Paris gaols
By Ron Bousso
LONDON, Feb 1 (Reuters) - BP has agreed to broadenits disclosure on greenhouse gas emissions to show how it thinksfuture investments in oil and gas align with U.N.-backed climategoals, it said on Friday.
Following talks with a large group of investors, BP alsoagreed to back a shareholder resolution on the measures at itsannual general meeting (AGM), further evidence of the way theenergy industry and investors are engaging on climate issues.
The agreement with a group of investors with $32 trillionunder management, known as Climate Action 100+, comes weeksafter rival Royal Dutch Shell agreed to introduce broadcarbon emissions targets linked to executive pay.
Unlike other companies, BP has agreed to detail how majorfuture investments in fossil fuels will be consistent with the2015 Paris agreement to reduce carbon emissions to net zero bythe end of the century by phasing out fossil fuels.
It will set out new metrics to measure greenhouse gasemissions from its operations.
BP said in a statement it would link carbon targets to theremuneration of 36,000 of its employees, including executivedirectors.
If the resolution is approved at the AGM, BP will introducethese changes into its reporting for 2019 onwards.
But the joint agreement revealed a fundamental rift withinvestors over BP's statement that its strategy today was inline with the Paris agreement.
"Investors remain concerned that the company has not yetdemonstrated that its strategy, which includes growth in oil andgas as well as pursuing low carbon businesses, is consistentwith the Paris goals," Climate Action 100+ said in statement.
BP plans to rapidly grow oil and gas production over thenext five years thanks to more than a dozen new projectslaunched in recent years, as well as the $10.5 billionacquisition of BHP's U.S. shale portfolio last year.
"We will be open and transparent about our ambitions andtargets as well as our progress against them," BP Chairman HelgeLund said in a statement.
BP Chief Executive Officer Bob Dudley has repeatedly saidthat while the oil and gas sector needs to play a role in thetransition to low carbon energy, it still needs to meet growingdemand for fossil fuels, particularly in emerging economies.
"BP is committed to helping solve the dual challenge ofproviding more energy with fewer emissions. We are determined toadvance the energy transition while also growing shareholdervalue," Lund said.
Investors and analysts have said many oil and gas projects,such as complex and expensive investments in Canada or somedeepwater basins, will not be needed in the transition to a lowcarbon energy.
While BP agreed to increase its disclosure around climate,it also rejected another resolution tabled by climate activistgroup Follow This calling for emission reduction targets for allits operations, including emissions from products it sells tocustomers, known as Scope 3.
BP announced in April plans to keep carbon emissions flatover the decade to 2025 even as its oil and gas output was setto grow. It also plans to invest up to $500 million per year onrenewable energies such as solar, wind and power storage.
(Reporting by Ron BoussoEditing by Edmund Blair)
