BP shifts from renewable energy to oil and gas despite investor concerns

February 28, 2025

BP has moved forward with plans to switch from investing in renewable energy to oil and gas, despite calls from a group of investors for a vote on the company’s climate goals.

There was speculation that BP might abandon its climate plans due to shareholder pressure to increase profits, a pressure that grew stronger following activist investor Elliott Management’s acquisition of a stake in the company.

As a result, a group of long-term investors, managing £5 trillion in assets, called on BP to give shareholders a voice in its climate goals.

The investors, which include Border to Coast, Robeco and Rathbones, sent a letter urging BP to allow shareholders to vote on its climate strategy at the company’s upcoming AGM this spring.

Colin Baines, stewardship manager at Border to Coast Pensions Partnership, said: “We share the concerns of co-signatories to this letter regarding BP’s weakening of its climate targets and transition plans. By further stepping away from its shareholder-mandated transition plan, BP is signalling its prioritisation of short-term gains over rebalancing the business to protect and enhance shareholder value and the ability to generate returns in the long term.

Despite the investors' concerns, BP has reduced its planned annual investment in renewable energy businesses by over $5 billion. It will also shift its focus to increase annual oil and gas spending to $10 billion, with plans to boost oil and gas production to between 2.3 million and 2.5 million barrels of oil equivalent per day by 2030.

The oil giant has also revised its approach to Scope 3 emissions, removing its previous target of a 20% to 30% absolute reduction between 2019 and 2030. Instead, it now aims to reduce the carbon intensity of its energy products by up to 10% over the same period.

Minerva’s blog focuses on the latest developments in ESG investing and stewardship. Minerva is a global provider of sustainable stewardship solutions with over 25 years of expertise. Minerva empowers investors by providing essential tools, including ESG research and data, enabling them to navigate the intricate landscape of stewardship and proxy voting, whilst ensuring their decisions are well-informed and aligned with sustainable principles.

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