Net Zero Company Benchmark Update

Assessments for 14 Australian focus companies have been released early ahead of AGMs —click here for more information.

X

Investor welcomes increased climate ambition from bp

8th February 2022

bp increases both 2030 and 2050 emissions reduction targets

A lead investor engaging with bp as part of Climate Action 100+ has welcomed the announcement of its plans to accelerate its net zero ambition. EOS at Federated Hermes has been engaging with bp through the initiative for a number of years.

bp now aims to reduce its operational emissions by 50% by 2030, compared with an aim of 30-35% previously. It is also aiming for net zero lifecycle emissions from the energy products it sells by 2050 or sooner, including Scope 3 emissions, expanding on a previous target of a 50% reduction.

“In the context of strong financial results, we welcome bp’s strengthening of its low carbon ambitions. In response to engagement, bp has become the first oil & gas major to put in place a triple net-zero target covering each of its operating emissions; upstream energy produced and downstream energy products sold. This is achieved by raising its ambition for net-zero emissions by 2050 from a previous 50% reduction in emissions intensity. We also welcome the improvement in its operating emissions reduction target of 50% by 2030, compared with a previous 30-35% target in line with investor expectations of a 1.5°C pathway. We look forward to further discussions to understand in detail the plans and assumptions underlying these ambitions and the extent to which the transition strategy is consistent with limiting emissions to 1.5°C.” Bruce Duguid, Head of Stewardship for EOS at Federated Hermes and a co-lead engager for Climate Action 100+.