BP share price: Group faces investor challenge over climate goals

Oil major and peers urged to set carbon targets in line with Paris climate agreement

BP share price: Group faces investor challenge over climate goals

BP (LON:BP) and US peers Chevron and ExxonMobil are set to face a shareholder challenge to set carbon targets in line with the Paris challenge agreement, the Guardian has reported. The news comes after Royal Dutch Shell (LON:RDSA) unveiled plans last week to set short-term targets as part of its long-term ambition to reduce the net carbon footprint of its energy products. 

BP’s share price rose in the previous session, gaining 2.28 percent to 514.80p, outperforming the broader UK market, with the benchmark FTSE 100 index gaining 74.06 points to end trading 1.10 percent higher at 6,778.11. The energy group found support in a rise in the oil price, with OPEC and Russia agreeing to cut output.

BP faces challenge over climate goals

The Guardian reported this morning that green group Follow This was hoping to use investor power to push other major oil and gas firms into setting similar goals.  The organisation has bought shares in several major fossil fuel groups and has submitted two resolutions to BP and Shell, and is planning to file identical resolutions with the US companies Chevron and ExxonMobil later this week unless other parties submit a similar demand.

Investors at the groups’ annual general meetings next year will be asked to vote in favour of them publishing climate change targets in alignment with the international goal of keeping the rise in global temperatures well below 2C.

BP “will consider the resolution carefully and make a response and recommendation to our shareholders as part of our Notice of Meeting prior to the AGM,” a spokesman for the energy major told Reuters.

Analysts on FTSE 100 energy group

Berenberg Bank, which rates BP as a ‘buy,’ set a price target of 665p on the shares last week. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 645.75p.

As of 08:03 GMT, Monday, 10 December, BP plc share price is 514.80p.

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