INVESTOR UPDATE on the crucial question for BP: ‘Scope 3 or not Scope 3?’

May 21st, 2019: Scope 3 are “emissions that BP does not control
June 27th, 2019: thinking about Scope 3 is “likely to evolve

BP’s chairman Helge Lund anticipates reacting to investors’ support for the Follow This climate resolution. Asked by Reuters, he said that BP’s thinking around Scope 3 – the key controversy in the Follow This climate change targets resolution – is likely “to evolve over time.”

This development comes despite BP’s rejection of Scope 3 emissions targets (“emissions that BP does not control”) and despite an alternative (management-backed) climate change disclosures resolution that steered clear of Scope 3 targets and received 99.1% of the shareholder votes during the AGM one month ago.

Apparently, the signal of 8.4% of investors that voted for the Follow This climate change targets resolution was well understood by the Chairman. We hope that this early announcement anticipates on BP following Shell in setting targets for Scope 3, a crucial component to taking serious climate action.

In 2017, Shell rejected the Follow This climate resolution with the same argument (targets for Scope 3 are “unreasonable”) and made a U-turn setting ambitions for Scope 3 after 6.3% of the shareholders voted for the resolution. We hope BP will go down the same path.

We thank the investors that supported the Follow This climate resolution.

Crucial passage in interview with Helge Lund, by Ron Bousso and Dmitry Zhdannikov:

But many investors say BP will have to do more, including tackling emissions from the fuels and products it sells to millions of customers daily, known as Scope 3 emissions, to prevent a catastrophic rise in global temperatures.
Lund said however that such Scope 3 targets would tie BP’s hands to make future investments, whether in renewable energy or oil and gas. He nevertheless said the company’s thinking around Scope 3 was likely “to evolve over time.”

Read the interview here on Reuters.