Fossil fuel giant BP is being challenged on climate change pledges by a coalition of 50 UK-based charities and church groups.
CCLA is leading the £160bn “Aiming for A” investor coalition into the next phase of its capital stewardship, which is focusing on low carbon transition. The coalition has tabled a resolution calling on BP to honour a 2010 pledge to see global warming increase by no more than 2 degrees Celsius.
A similar shareholder resolution – which also calls for a reform of bonus systems and commitments to emissions reduction, greater transparency in public policy and investment in renewable energy – has been put to Shell by an engagement led by Rathbone Greenbank Investments.
Helen Wildsmith, head of ethical and responsible investment at CCLA, said that shareholder resolutions play an important part of stewardship: “Climate change and associated public policy uncertainty create material risks for investors… stretching shareholder resolutions could help focus attention on this increasingly complex capital allocation challenge for companies, investors and policy-makers.”
Alongside CCLA, the full co-filing group includes member organisations of the Church Investment Group (CIG), various pension funds, overseas insurers and other UK charities including: Barrow Cadbury Trust, JJ Charitable Trust and ClientEarth.
Matt Crossman from Rathbone Greenbank said that BP and Shell were chosen because they have “the highest carbon footprints” of any of the FTSE100. While John Thornton, chief executive of ClientEarth, said in a statement that: “BP and Shell hold our financial and environmental future in their hands.”
BP claim to "have had constructive discussions" with CCLA and will "carefully consider" the resolution before bringing it to a vote at the company's annual general meeting in April. Shell has yet to officially respond.