BP Calls on Investors to Reject Emissions-Targets Proposal

   By Maitane Sardon 
 

BP PLC (BP.LN) has called on its shareholders to reject a climate resolution filed by activist investor Follow This that requests it to set targets for emissions from the consumers of its products.

In the notice of annual general meeting distributed today to shareholders, the BP board opposed the resolution filed by the Netherlands-based group of some 4,600 shareholders that urges oil-and-gas companies to set long-term targets in line with the Paris Agreement.

The British oil-and-gas company said it did not support the resolution because it calls for targets for "Scope 3" emissions that BP said it does not control. Scope 3 emissions are indirect emissions from sources such as capital goods, business travel, franchises and use of sold products--in this case use of fuel by BP's customers.

While BP's competitor Royal Dutch Shell (RDSB.LN) had previously accepted the same resolution and set targets for end-user emissions, BP said setting specific long-term reduction targets is inconsistent with its flexibility.

Quantitative targets, BP said, could significantly inhibit its ability to deliver shareholder value by limiting "future portfolio choices."

"An oil-and-gas company without targets for its products can never prove to be aligned with the Paris Climate Agreement," said Follow This member Mark van Baal.

Climate resolutions remain on the agendas for the AGMs of Equinor ASA (EQNR.OS) and Chevron Corp. (CVX), which Mr. van Baal said have not yet accepted responsibility for the emissions of their products.

Write to Maitane Sardon at [e-mail]

(END) Dow Jones Newswires

April 10, 2019 11:58 ET (15:58 GMT)

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