Renewable output is set to become less of a priority, while the pledge to reduce oil and gas output may be officially abandoned.
BP will abandon its pledge to increase renewable energy generation by 2030 when it presents its strategy to investors on Wednesday.
CEO Murray Auchincloss will rescind the firm’s aim to boost renewable output 20-fold between 2019 and 2030 to 50 gigawatts, according to Reuters.
BP will also abandon a target to reach core earnings of $49 billion (€46.7bn) this year, said Reuters’ sources, a proposal that was previously suggested in a call with analysts.
Instead, the firm will set an annual percentage growth target.
BP failed to meet its core earnings goal of $40.9bn (€39.1bn) for 2024.
Cutting low-carbon investments
At an investor day in London on Wednesday, BP will also share plans to divest assets and cut other low-carbon investments to reduce debt and boost returns.
After the departure of CEO Bernard Looney in late 2023, BP shares slumped last year as the firm failed to win back investor confidence.
Looney, who had led BP since 2020, was sacked for having past relationships with colleagues and not being “fully transparent” about them.
BP profits fell to $8.9bn (€8.5bn) in 2024, from $14bn (€13.3bn) in 2023.
Targets to reduce oil and gas
This isn’t, however, the first time that BP has walked back sustainability pledges.
In 2020, the firm aimed for a 40% reduction in oil and gas output by 2030.
This was changed to a 25% reduction in 2023 following Russia’s invasion of Ukraine and Europe’s energy crisis.
Now the firm is expected to officially abandon the target on Wednesday.
It’s possible that BP will even increase output, following the example of ExxonMobil, Chevron, and Shell.
Elliot Management
The investor meeting also arrives as activist investor Elliott Management is building up a significant stake in BP, currently worth nearly 5%.
It’s not exactly clear what the hedge fund would like BP to do but some analysts expect major demands.
These could include a potential breakup of the company and tighter cost discipline.
Elliot has already pushed for major changes at companies such as Honeywell and Southwest Airlines.
One source told Reuters that Elliot wants BP to scale down green energy spending and sell wind and solar assets.
Since taking office, Auchincloss has slowed investments in renewables and announced plans to cut costs and reduce staff by 5%.
The investor day was organised before BP was made aware of Elliot’s stake, although the disclosure now increases pressure on the oil and gas firm.
Euronews has contacted BP for further comment.
