BP to expand emissions disclosure on oil investment

BP has agreed to broaden its disclosure on greenhouse gas emissions to demonstrate how the company’s future investments in oil and gas will align with the United Nations supported climate goals.

Following talks with a large group of investors, BP also agreed to back a shareholder resolution on the measures at its annual general meeting (AGM), giving further evidence of the way the energy industry and investors are engaging on climate issues. The agreement with a group of investors known as Climate Action 100+, comes weeks after Royal Dutch Shell agreed to introduce broad carbon emissions targets linked to executive pay.

Unlike other companies, BP has agreed to detail how major future investments in fossil fuels will be consistent with the 2015 Paris agreement to reduce carbon emissions to net zero by the end of the century by phasing out fossil fuels. It will set out new metrics to measure greenhouse gas emissions from its operations. If the resolution is approved at the AGM, BP will introduce these changes into its reporting from 2019 onward.

BP plans to rapidly grow oil and gas production over the next five years thanks to more than a dozen new projects launched in recent years, as well as the $10.5 billion acquisition of BHP’s U.S. shale portfolio last year.

“We will be open and transparent about our ambitions and targets as well as our progress against them,” said BP Chairman Helge Lund. BP Chief Executive Officer Bob Dudley has repeatedly said that while the oil and gas sector needs to play a role in the transition to low carbon energy, it still needs to meet growing demand for fossil fuels, particularly in emerging economies. “BP is committed to helping solve the dual challenge of providing more energy with fewer emissions. We are determined to advance the energy transition while also growing shareholder value,” Lund said.
Previous articleEquinor reduces CO2 emissions from the supply chain
Next articleSiemens supplies lithium-ion battery for offshore drill