BP to tie executive pay to reducing greenhouse gas emissions
BP promises to significantly cut carbon emissions in accordance with the Paris Climate Agreement.
British Petroleum(BP) has vowed to to link executive pay to its reduction in carbon emissions. The move is a bold stance that shows how investors are driving energy companies are trying to be more socially responsible.
Why is BP disclosing its greenhouse gas emissions in reports?
BP has agreed to disclose its greenhouse gas emissions in company reports after approving a resolution from the Climate Action 100+ group, a collection of 300 shareholders. The socially conscious investors have $32 trillion in assets and have pressed the conglomerate to have a business strategy that works to lessen its carbon footprint.
The gas company has promised the group to reduce carbon emissions and be in line with the 2015 Paris Agreement to mitigate the effects of climate change. The corporation also pledged to link executive pay to how well the corporation has lessened greenhouse gases.
BP’s chief executive officer (CEO), Helge Lund, said that the disclosure would help the oil company meets its goals producing energy and stemming the increase in the global temperature.
‘BP is committed to helping solve the dual challenge of providing more energy with fewer emissions. We believe our strategy is consistent with the Paris goals,’ said Lund.
‘This is good news for both investors and the planet. The decision by the BP board to support the resolution shows that this is a priority for the company and builds on progress to date, such as setting best in class methane intensity targets’, said Duguid.
Will the BP pledge reduce greenhouse gases?
While some environmentalists hailed BP’s decision to disclose its carbon emissions reports, Climate Action 100+ expressed scepticism about whether BP will honor its commitment.
‘Investors remain concerned that the company has not yet demonstrated that its strategy, which includes growth in oil and gas as well as pursuing low carbon businesses, is consistent with the Paris goals,’ said Climate Action 100+ in a statement.
It remains to be seen how a large oil company can act to reduce global warming. Climate Action 100+ and other socially conscious investors will monitor BP to make sure it’s part of the solution to reverse climate change.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
See your opportunity?
Seize it now. Trade over 17,000+ markets on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
