BP says it will back initiative on climate plan disclosure

February 01, 2019 - 7:29 am

LONDON (AP) — Energy giant BP said Friday it will support a resolution from a group of institutional investors to describe how its strategy is consistent with the Paris climate change accords — a reflection of how investor pressure is putting global warming on the boardroom agenda.

The company says in a statement that it accepted the call from participants in the Climate Action 100+ initiative, which wants the company to improve corporate reporting and transparency on risks related to climate change.

The group describes itself as an investor initiative designed to push corporate greenhouse gas emitters to take action on climate change. It involves 300 investors with $32 trillion in assets, including Hermes EOS, Aviva Investors and Legal and General Investment Management.

"Investors are helping ensure climate change is firmly on the boardroom agenda, which is especially important for the oil and gas sector," said Stephanie Pfeifer, a member of the global Climate Action 100+ steering committee. "It's encouraging to see major companies such as BP moving in the right direction."

BP supported the Paris climate accord, an international agreement that set a goal of keeping global warming well below 2 degrees Celsius (3.6 F), ideally 1.5 C (2.7 F). Achieving the goal will require steep cuts in greenhouse gas emissions.

Under the resolution, the company will spell out a "description of its strategy which the Board considers, in good faith, to be consistent with the goals of ... the Paris Agreement."

BP Chairman Helge Lund said the company wants to solve "the dual challenge" of providing more energy with fewer emissions.

"We believe our strategy is consistent with the Paris goals," Lund said in a statement. "The additional reporting specified in the resolution will build on BP's history of progressive action in this area."

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