BP PLC agreed to outline how its strategy follows the goals of the Paris Agreement in response to calls from institutional investors, including the €399 billion ($453 billion) Stichting Pensioenfonds ABP, Heerlen, Netherlands.
The energy company said in a statement Friday that it will show at its annual general meeting in May how its strategy is consistent with the goals of the Paris Agreement — aimed at limiting the global temperature increase to 2 degrees Celsius.
APG Asset Management, on behalf of ABP, together with other large investors, filed a resolution with BP in December 2017. APG said a change in the firm’s corporate strategy is a result of BP appointing a new chairman, Helge Lund, effective Jan. 1.
“We have been discussing the Paris Agreement with BP for years,” said Lucian Peppelenbos, senior responsible investment and governance specialist at APG, in a separate news release. “Until now the company was barely prepared to be guided by the climate goals. (But) the new chairman prefers a resolution over a joint statement because of its binding nature.”
“This also sends a signal to other companies,” Mr. Peppelenbos said in the news release.
Mr. Lund said in the statement: “We will be open and transparent about our ambitions and targets as well as our progress against them. We recognize that the trust of our shareholders, and society more widely, is essential to BP remaining an attractive and reliable long-term investment.”
If the shareholder resolution is approved at the meeting, BP will introduce changes into its reporting in 2019.