BP faces investor pressure to drop ‘irrational’ net zero aims

BP FACES fresh demands to scrap the “irrational” net zero commitments championed by its former chief executive Bernard Looney, after an activist investor claimed they have left shareholders £40bn poorer.

The FTSE 100 oil giant was yesterday accused of pursuing an unrealistic strategy by Bluebell Capital Partners, the investor that took a minority BP stake as well as taking on blue chip heavyweights Glencore and Danone.

In a 30-page letter, Bluebell called on BP to scrap its commitment to scale back its oil and gas business by a quarter this decade, halt investment in renewable energy schemes and rewrite its net zero targets to clarify they will be achieved “in line with society”.

Bluebell argued that the targets will artificially constrain BP and leave it at a disadvantage compared to rivals such as Shell and Exxonmobil, which have made no such commitments.

It added that BP’S investment in renewables such as solar and wind are failing to generate strong enough returns and that it lacks the expertise to be successful in those sectors.

The activist is also demanding BP return an extra $16bn (£12.6bn) to shareholders this decade and urged it to sack a board director with links to fund giant Blackrock, which it branded “a world champion of ESG inconsistency and hypocrisy”.

Bluebell said BP’S true worth was “at least 50pc more” than its stock market value, which stood at about £80bn yesterday but had been dragged down by its “ill-conceived” eco-strategy.

Giuseppe Bivona, partner and chief executive at Bluebell, said he spent yesterday speaking to BP shareholders and warned too many companies are making unattainable green commitments.

He said: “There’s a lot of PR in this. I believe that, today, we can have a much more mature discussion ... We’re not saying they should not get to net zero by 2050. We are saying do it in a way which is better for shareholders.

Mr Bivona said BP should stay out of renewable power and called for BP Lightsource, its solar unit, to be sold.

His views are a major test for Murray Auchincloss, BP’S new chief executive, who told staff he was sticking with his predecessor’s green plans after he took over last year when Mr Looney was sacked after he failed to fully disclose past relationships with colleagues.

A spokesman said: “BP welcomes constructive engagement with our shareholders ... We are confident the strategy will grow the value of BP.”