Influential investor group Calpers and Climate Action 100+ has decided to vote for the U.S. Pension Fund against climate resolution in the oil superpower BP.
The resolution, scheduled to be voted on at the BP’s annual general meeting on Wednesday, called on the oil company to restructure its net-zero plan and reduce emissions more stringently in line with the Paris climate agreement.
Even as BP seeks to reduce production by 40 percent by 2030 as part of its net-zero target and increase renewable power generation capacity by 20 times by the end of the decade, emissions are still expected to increase.
Colpers, which hold the position of the rotating chair CA100 +, A group that represents investors holding 54tn of assets and represents companies campaigning to reduce their carbon emissions, it said. Vote Against the resolution.
“We understand why the oil majors oppose change, but we don’t understand why the CA 100 chairs vote against change,” said founder Mark Van Baal. Follow itShareholder Activist Group filing resolution in BP.
BP said the Darkonization project it announced last year was “in line with Paris’s goals” and was a drastic change from the past. It added: “Returning to the drawing board with strategies, goals and objectives will hamper our business plans” as it called on shareholders to vote against the resolution.
However CA100’s own Criteria Says, BP has no goal that unites with the whole of Paris.
Lucy Pinson, founder and executive director of Reclaim Finance, a group focusing on the role of the finance industry in global warming, said the decision to vote against the decision was a “verification of the tragic truth of the hypocrisy of most climate investors.”
“It shows that the Colpers, [like] Many investors pretend to act in the climate without actually acting on the climate. Unfortunately, this is not the first time. “
The situation has exposed the increasingly complex position of investors who on the one hand want to be seen as a rewarding institution for the progress of climate action and are pushing them to do more. There are also inconsistencies in the claims of large shareholders.
The Colpers said they were voting against following the resolution because BP was “already committed to sharing with the shareholders the goals of the Paris Agreement and continuing to develop the climate strategy.”
But Ann Simpson, director of management and sustainability at the Colpars board and a member of the CA100 + steering committee, said the pension fund does not believe BP is doing enough in the climate.
Colpars, CA 100+ and BP Management all previously supported similar climate resolutions, which were passed in 2012. The company has been involved with board and chief executive level investors ever since, Simpson said.
“If we don’t get it [the response we are looking for] From the organization, the next step for us is to vote against the board members, ”he said.
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Before CA100 + finds itself in a similar position Royal Dutch ShellAGM this month. It has opposed individual resolutions by following the company’s own power transfer strategy
Still, critics of the CA100 + aren’t convinced it’s enough.
Yossi Kadan, global finance campaign manager for environmental group 350.4, said the whole idea of a net-zero emissions target for 2000 is a “frustration” that BP and others use to hide their responsibility and inaction on climate change.
“It simply came to our notice then. Let’s be late so that someone has to do it in the future, ” he said.
Colin Bains, investment manager at the Friends Provident Foundation, a nonprofit with a 35 35 million investment pot, said it was “remarkable” that CA 100+ and large investors were failing to support the proposals attached to the Paris Agreement.
“Clients and members will be shocked to learn that their investors are probably using the most influential tool in their case [their vote at company meetings] To prevent climate science-led action, ”he said.
Employees have called on shareholders to support the proposal, with Glass Lewis, the world’s largest proxy advisor to Institutional Shareholder Services and BP, on behalf of shareholders. Norse Bank Investment Management, which oversees the world’s largest sovereign wealth fund, and Federer Hermes, which led the campaign for CA 100+ in BP, are also voting against the resolution.
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