How investors forced BP, Shell to come clean on climate. Exxon may be next
They say “money talks.” That’s certainly true when you’ve got $32tn (£24.5tn) to throw around.
More than 300 large investors have banded together and convinced BP (BP.L) to be more transparent in its actions to limit global climate change and align with targets set by the Paris climate treaty of 2015.
BP said on Friday that it planned to go along with investor demands to clearly outline how its investments in oil and gas would be aligned with the Paris climate goals. It also committed to cutting back on greenhouse gas emissions and said the bonuses of 36,000 employees and executives would be tweaked to incorporate its emissions goals. The company employs 74,000 workers.
The BP announcement was made alongside the investor group Climate Action 100+, which has been pressuring some of the largest carbon emitters in the world to take responsibility for limiting climate change.
“Investors remain concerned that [BP] 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,” Climate Action 100+ said in a statement. The group hopes these commitments from BP will provide more clarity and transparency in the coming months.
The BP announcement comes weeks after rival energy giant Royal Dutch Shell (RDSB.L) agreed to introduce broad carbon emissions reduction targets linked to executive pay. The company announced the initiative jointly with Climate Action 100+.
Climate Action 100+ is also targeting global energy companies including Exxon Mobil (XOM) and Chevron (CVX), along with consumer goods companies like Nestle (NESN.VX) and PepsiCo (PEP).
A range of investors have been pressuring Exxon to be more transparent in setting targets to reduce greenhouse gas emissions.
