LONDON (Alliance News) - Oil major BP PLC has joined peer Royal Dutch Shell PLC in opening up on its plans to combat climate change going forward.
BP also has joined Shell in linking remuneration for its staff to the company's greenhouse gas emissions.
Investors from the Climate Action 100+ initiative, BP said on Friday, have proposed a resolution for its May annual general meeting calling for BP to describe how it will be the 2015 Paris Agreement.
BP is to support the motion, and will provide more information on how it is to meet goals set out in Paris four years ago.
The Paris Agreement was ratified by EU member states in October 2016. By April 2016, 175 countries signed up in one day at the United Nations Headquarters in New York.
The Climate Action 100+ initiative is a five-year movement led by investors to engage greenhouse gas emitting companies to help achieve the Paris Agreement. As of December, 310 investors covering more than USD32 trillion in assets under management had joined up.
Some of the members include Standard Life Aberdeen PLC, AXA Group, the Church of England Pensions Board, HSBC Global Asset Management, Investec Asset Management, Janus Henderson Investors, and UBS Asset Management.
BP Chair Helge Lund said: "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. The additional reporting specified in the resolution will build on BP's history of progressive action in this area. We welcome the constructive engagement with Climate Action 100+ and, after careful consideration, have decided to support this resolution."
BP also said Friday reductions in greenhouse gas emissions have now been included in the rewards for its 36,000 employees, including executives.
Early in December Shell, having met with investors, decided to publish a number of steps which would align it to the goals of the Paris Agreement.
Shell aimed to reduce its net carbon footprint to around half by 2050, but by approximately 20% as an interim step by 2035. It is to start setting net carbon footprint targets for three or five-year periods.
It also decide to include a link between carbon footprint targets and remuneration.
Shell is to publish annual reports on how it is getting on with its net carbon footprint goals, and also said it will review its membership of relevant trade associations if they contradict its goals on climate change.
"Tackling climate change is a multi-generational challenge for society, including businesses, governments and consumers," said Shell at the time.
"Shell fully supports the Paris Agreement and believes society has the scientific and technical knowledge to achieve a world where global warming is limited to well below two degrees Celsius."
"Investing in assets that will remain financially resilient in the energy system of the future is key to delivering a world-class investment case to Shell’s investors," Shell continued.
"Shell aims to grow its business in areas that will be essential in the energy transition, and where it sees growth in demand over the next decades. Shell believes its net carbon footprint ambition has positioned the company well for the future as it underpins and enables the execution of all three of its strategic ambitions."
"Shell acknowledges and agrees with the importance attached by its investors to the issue of climate change, and also agrees Shell's future success is contingent on its ability to effectively navigate the risks and the opportunities presented by climate change," it concluded.
Shell on Thursday reported earnings slightly ahead of consensus for 2018 after a "strong year, with current cost of supply earnings coming in at USD21.40 billion, up 36% year-on-year. Consensus had seen CCS earnings at USD20.98 billion.
BP is due to release its own financials for 2018 on Thursday next week.
BP shares were down 0.1% on Friday morning at 519.60 pence each, while Shell 'A' shares were 0.2% higher at 2,366.5p and 'B' shares also 0.2% up at 2,372.52p.
BP (BP.)