Representatives from five pension funds – Border to Coast, Brunel Pension Partnership, LGPS Central, Nest and the Universal Pension Scheme – told the BBC they were concerned that the reduced climate targets posed financial risks to the energy company.
“Not only were we disappointed to see the company go back on target, but we were really surprised that we didn’t have any consultation,” Nest’s Katharina Lindmeier told the BBC.
BP has opted for a decarbonisation strategy and announced plans in February to invest $8 billion in new oil and gas production over the next seven years, the same amount that will be spent on bioenergy, electric car charging, hydrogen and renewable energy.
The move was part of a plan to boost the group’s pre-tax earnings to $56 billion. USD in 2030 and BP in 2022. earned 27.7 billion USD net profit, more than double the 2021 figure.
In addition to the costs, the company has reset its goal of reducing emissions by the end of the decade from 35-40% at the end of the decade set three years ago to 20-30% at the start of this year.
Separate reports from CNBC believe shareholders may express their frustration at BP’s annual meeting on Thursday by voting against the reappointment of BP chairman Helge Lund. A Dutch activist investor with a stake in BP launched a resolution on Follow This calling on the British energy giant to align its strategy with the Paris climate agreement.
“We hope that investors who expected that in 2022 vote is not necessary, they now understand that voting is critical to bring BP into line with Paris,” Mark van Baal, founder of Follow This, was quoted as saying ahead of BP’s annual general meeting.
But BP and many other energy companies are embracing the technologies needed to move away from fossil fuels. European lawmakers have said the “hydrogen age” is a new source of clean energy, and BP has plans. to invest about 2 billion dollars to establish a hydrogen center in Spain.
CEO Bernard Looney said his company is working to “give the world the energy it needs today.”