Proactive Investors - BP (LON:BP) boss Murray Auchincloss has hinted at a further relaxing of green-transition targets implemented by his predecessor Bernard Looney
BP’s former chief executive Bernard Looney set a 25% reduction target in daily output to two-million barrels of oil equivalent per day (boepd) by 2030.
Though this target remains in place, Auchincloss suggested in a Reuters interview that the target may not be set in stone.
“Two million (boed) is a decent number to stick by right now. Could it be higher? Yes. Could it be lower? Yes," he said.
Under Auchincloss, BP has been considerably more focused on keeping shareholders happy with buybacks and dividends than arbitrary green targets; a viewpoint reiterated to Reuters today.
"And as we make those decisions on a returns-based approach, that will help inform what we think our production will be in 2030, but I am focused on returns and cash flow, not volume," Auchincloss said.
Not all shareholders will be impressed though.
Dutch pension fund PFZW sold its stake in BP (and Shell (LON:SHEL)) earlier this year after criticising them for not being serious about reducing emissions.
In April 2023, numerous shareholders, including government-backed pension scheme Nest, the Universities Pension Scheme, LGPS Central, Brunel Pension Partnership and Border to Coast, voted with activist investor Follow This in challenging BP on plans to water down its carbon-reduction targets.
Regardless of sporadic shareholder dissent, BP’s board is at pains to reduce a market valuation gap between it and its competitors.
Under Auchincloss, it is becoming clearer that ESG will be the sacrificial lamb in making this happen.