BP PLC BP. It is expected at Wednesday’s Landmark Strategy Summit that cuts many of its environmental commitments, renewable energy spending and refocus on fossil fuel production.
The oil and gas company will announce new strategies at a meeting in London. It plans to announce its new strategy after some shareholders are under pressure from a decline in profits and a stock price that has lagged behind rival Shell PLC. shell.
In 2020, BP won the praise of the Environmental Group after launching some of the most ambitious green targets of the fossil fuel company.
They include oil and gas production, which was reduced by 40% by 2030, and will become a zero-emissions company by 2050 under a plan announced by former CEO Bernard Droney We have become a net zero emissions company.
Now, they are being fired from the same environmental group amid widespread concerns that they will return to those pledges after stock prices have fallen behind their rivals, including Shell.
BP said that after Rooney left in 2023, BP will serve as new CEO, and his replacement, Canada’s Murray Autincross, will be the “basics of BP’s strategy” in early February. He said he would perform a “reset”
This comes after the influential US hedge fund Elliot Management acquired nearly 4 billion stakes, less than 5% of its shares.
Hedge funds are understood to be pushing BP to invest more oil and gas.
BP fell to a third of the previous year, winning around 7.2 billion Gbp last year, following a fall in oil and gas prices from highs seen in the wake of Russia’s invasion of Ukraine.
Shell has already rolled back some of its renewable energy investment plans.
US President Donald Trump’s promise of a “drill baby drill” encouraged oil and gas companies to concentrate more on fossil fuels.
However, not all BP investors want to make profits before reducing emissions.
Almost 50 major investors in the company have recently called on their bosses to vote for a potential plan to abolish the climate target.
Hargreaves Lansdown Fund Managers and Royal London Asset Management Arm, a group of investors including Scottish widows, wrote last week that they expect a say in any plan.
A spokesman for Royal London Asset Management said he was “concerned about the company’s continued investment in expanding fossil fuels.”
“Despite industry commitment, emissions from oil and gas companies are still rising and we need to see concrete progress in line with capital expenditures tailored to reliable low-carbon scenarios.”
Charlie Kronick, senior climate advisor at Greenpeace UK, said:
“Government policies also need to prioritize renewable electricity. As extreme weather puts pressure on insurance models, policymakers aim to benefit fossil fuels as a way to fund extreme weather recovery. It’s there.
“BP might want to put the brakes seriously on this U-turn.”
The strategy update will be made at BP’s headquarters in London, with Auchicloss expected to begin speaking out at 1300 GMT.
James Alexander, chief executive of the UK Sustainable Investment & Finance Association, said that the rollback of Green’s promise should be “sound alarm bells alike for investors and UK policymakers.”
He added: “The expansion of BP’s oil and gas extraction activities is in breach of the long-term global energy projection and conflicts with the decarbonization trajectory needed to limit global warming to 1.5c.
“This shift presents serious questions about whether decisions are being made in the interest of the company’s long-term viability benefits and whether it exposes investors to growing risks from isolated oil and gas assets. It must be raised.”
BP declined to comment.
BP’s shares rose 0.9% in London at 440.80p each on Wednesday morning.
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