NORWAY: British oil giant BP bags Norway’s oil fund’s support! Norway’s $1.4 trillion sovereign wealth fund, one of the largest investors in the world, announced on Saturday that it will vote against a resolution urging BP to implement stricter greenhouse gas reduction goals.
Although BP already strives to cut emissions, the motion submitted by activist organisation “Follow This” before a shareholder vote on April 27 urges the business to support the Paris Climate Agreement’s aim to curb global warming.
The Norwegian fund’s operator, Norges Bank Investment Management (NBIM), declared last year that it would be stricter on businesses that didn’t assume reliable climate strategies.
The motion was denied, but no explanation was provided. However, the fund has previously stated that while it occasionally supports environmental, social, and governance (ESG) initiatives made by activist groups, it carefully considers each case on its own merits.
Follow in a statement sent through email stated that NBIM should take the lead on climate concerns as a significant investor. “NBIM failed the first real test of its new climate voting policy,” Mark van Baal, Follow This founder, wrote.
The Norwegian fund, which was funded by oil and gas earnings, owned 2.73% of BP’s shares at the end of 2022, valued at around $2.8 billion.
The board of BP has advised shareholders to vote against the resolution, stating it was “unclear” what it wanted the firm to do.
ISS and Glass Lewis, two investing advisors, also advised BP shareholders to vote against the resolution. However, the Local Authority Pension Fund Forum (LAPFF) of the United Kingdom urged investors to support it.
In February, BP hacked off plans to reduce its 2019 oil and gas output levels by 40% by 2030, and now it envisions a 25% reduction, infuriating climate activists.
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