BP will link bonuses for 36,000 workers to climate targets
BP has pledged to align its business more closely with global climate goals and link the bonuses of 36,000 employees to greenhouse gas reduction targets.
The company said Friday that it would support a resolution from activist investors that calls on BP to align its goals with the 2015 Paris Agreement, which aims to keep global warming “well below” 2 degrees Celsius.
The resolution is from Climate Action 100+, a group of 300 investors with $32 trillion in assets. It will be voted on at the company’s annual meeting in May.
The group writes in the resolution that action was needed because BP “has not yet demonstrated” that its strategy is consistent with the Paris goals.
The resolution includes specific pledges.
BP will consider whether new investments are consistent with the Paris deal. That includes exploration projects, acquisitions, technological investments and the development of existing oil and gas fields.
The company will set climate targets related to its own operations, and it will publish an annual review of its progress.
BP also said that 36,000 of its workers will see their bonuses linked to greenhouse gas emissions reductions.
The resolution is the latest example of companies facing increased scrutiny from shareholders over climate change.
Shell, for example, said last year that it would start linking executive pay to short-term carbon emissions targets in 2020 after coming under pressure from shareholders including the Church of England.
Climate Action 100+ said the BP resolution was “good news for both investors and the planet.” Yet other activist investors may not be satisfied.
BP will face a second, tougher, climate change resolution at its annual meeting. This one is spearheaded by Follow This, a Dutch activist shareholder group that previously targeted Shell.
Follow This is asking BP to set and publish climate targets related to its own operations. But it also wants the company to account for emissions generated by the oil and gas products that it sells.
BP has said that while it is prioritizing making its fuels more efficient for its customers, it cannot commit to targets that go beyond its own operations.
In additional to BP, Follow This has announced plans to file similar resolutions against energy companies including Exxon Mobil and Chevron.