bp shareholders vote

BP must take heed of a significant vote at its Annual General Meeting today on a Greenpeace resolution calling for the company to take seriously the threats of climate change on fossil fuel investments and protect its shareholders financial future earnings by investing in renewable energy.

Today's initial proxy vote, displayed at the meeting today, showed 919 million shares, or 7.4 per cent of the vote, in favour of the resolution. Votes of the shareholders attending today's meeting have yet to be counted.

Greenpeace climate campaigner Stephanie Tunmore said:

"The BP Board of Directors can no longer ignore its own shareholders' conviction that the company is responsible for climate change and that this could undermine the future worth of its shares. The company must now begin to move out of fossil fuels and into renewable energy."

Resolution sponsor Sister Pat Daly, of the Dominican Sisters of Caldwell in the USA, said:

"We need BP to be the leader that it claims to be, but it needs to match its words with actions. BP must spell out in black and white, for all its shareholders and all those affected by its company policy, what it means by 'Beyond Petroleum'."

Tunmore added:
"International moves to regulate the use of fossil fuels and the burgeoning market in clean energy technologies will impact on BP's business. If the company wants to remain a profitable energy company in the future business as usual is not an option."

The Greenpeace resolution called on the BP Board to publish a report by the end of 2001, to include quantified targets and clear time-scales for switching from oil to renewable energy. The resolution is also supported by US socially responsible investor, Trillium Asset Management Corporation, US Public Interest Research Group, World Wildlife Fund.

Notes to Editors:
Sister Pat Daly, who moved the Greenpeace resolution, represents 275 faith-based institutions holding US$100 billion in investments.

Further information:
Contact:
Greenpeace Press office: 020 7865 8255/85

climate change desert

Oil giant BP stands to lose 5 percent of total earnings from declining petrol sales as the market for green fuel technology expands and regulations to reduce CO2 emissions begin to bite. The startling findings are contained in a report by financial analysts Innovest, which is published today by Greenpeace.

The Report, 'Climate Change and Shareholder Value: Case Study of BP Amoco' looks at the company's vulnerability to moves to curtail global greenhouse gas emissions, to competition from low carbon technologies, and to turbulence in demand for fossil fuel products. It shows that:

• Growth in the renewable energy technology sector is expected to continue, outstripping growth in the larger, more mature oil and gas sectors. Innovest believe that BP is not well placed, relative to several of its competitors, to exploit markets in clean energy technologies such as wind and hydrogen fuel cells.
• BP's efforts to meet its internal emissions reduction targets could be undermined by its upstream expansion strategy. The gap CO2 that will have to be managed away by 2010 if targets are to be met is estimated by Innovest to correspond to $1.5 billion over ten years.
• By 2010 emissions arising from the carbon embedded in BP's products will be over 6 times greater than the company's direct GHG emissions.

Martin Whittaker, Managing Director of Innovest and author of the report, concluded
"The oil industry is particularly vulnerable to any move to any move to curtail global emissions and to competition from low carbon technologies Ultimately, BP's plans to expand upstream oil and gas production may serve to heighten the firm's exposure to climate change-related risks... As such, shareholders would be justified in seeking clarification of the company's risk mitigation strategy.''

The Report is launched today at a seminar for fund managers and energy sector analysts hosted by Greenpeace Business at the London Stock Exchange. The Seminar, 'Climate Change and the Energy Sector: Investment Implications' will examine the wide-ranging measures required to address climate change, both regulatory and technological and their implications for the future profitability of the oil and gas sector. Speakers will also outline how new technologies are already changing energy markets.

Stephanie Tunmore, Greenpeace Climate Campaigner, said
"The findings of this report confirm that BP shareholders stand to lose unless BP begins the transition away from fossil fuels. Investors clearly need to know how BP plans to reduce the financial risk that inevitable changes to fossil fuel markets will bring. The Greenpeace resolution to this year's AGM provides an opportunity for them to ask that question."

Notes to Editors:
(1) Climate Change and Shareholder Value: Case Study of BP Amoco, prepared for Greenpeace UK by Innovest Strategic Value Advisors Inc. The report can be downloaded from the SANE BP website (213k); copies are also available from the Greenpeace Press Office.

(2) Climate Change and the Energy Sector: Investment Implications, a Seminar for Fund Managers and Analysts, hosted by Greenpeace Business, takes place from 9am-1pm on Wednesday 21 March 2001, 9am-1pm, at The London Stock Exchange. Admission is by prior registration only.

(3) Greenpeace has submitted a resolution to BP's April 19 AGM, calling on the Board to publish a report, by the end of 2001, outlining how BP will make the transition from fossil fuels to renewable energy. The resolution is supported by more than 130 shareholders holding over 11 million shares. Supporters include the London Boroughs of Hounslow and Islington, Derbyshire County Council, and the WorldWide Fund for Nature.

Further information:
Contact:
Greenpeace Press Office, 020 7865 8283

Greenpeace today re-issued a challenge to BP to come clean on its climate plans. The campaign group put forward an amended shareholder resolution to BP's April AGM after the company rejected the original - along with three others - on a legal technicality.

The resolution now "directs", rather than "requests", BP's Board to publish a report by the end of 2001 outlining how it will make the transition from fossil fuels to renewable energy, in response to climate change. BP's insistence on this one word change means the document becomes a 'Special Resolution' and requires a three-quarters majority vote from shareholders, rather than a simple majority.

Margo Dunn, Chair of the Staffing Committee at the London Borough of Islington, one of the co-sponsors of the resolution, said, "I am saddened that BP Amoco feels so threatened that they're forcing Greenpeace to use a Special Resolution - and have resorted to similar means to hinder other ethical resolutions. If they are so convinced in their own minds that they are doing everything possible to go 'beyond petroleum', why are they afraid of this rather gentle prod in the right direction?"

Greenpeace Climate Campaigner Stephanie Tunmore said, "BP attempted to block discussion of climate change and its implications for its core business - oil - just at a time when the world is waking up to the urgency of the problem.

"Since we first submitted the resolution in January, the need for BP and other oil companies to plan their exit from oil has become even more apparent. In the last ten days a document from the world's top scientists and a speech by Prime Minister Tony Blair have both stressed the urgent need for a switch to renewable energy technologies in order to combat climate change.

"BP's shareholders have a right and a responsibility to express their views about the role their company should play in this changeover."

The amended resolution is supported by more than 130 shareholders holding over 11 million shares. Supporters include the London Boroughs of Hounslow and Islington, Derbyshire County Council and the WorldWide Fund for Nature.

US shareholders who supported the original resolution are unable to sign again as BP's American shareholders have been excluded from sponsoring resolutions as individuals.

Further information:
Stephanie Tunmore: 020 7865 8211, mob 07801 212961
Greenpeace Press Office: 020 7865 8283,mob 07870 823485

Notes to Editors:

1. Last year a similarly worded Greenpeace shareholder resolution was accepted as legal. The 2000 resolution, which called on BP to switch investment from oil exploration to renewable energy and to stay out of the Arctic National Wildlife Refuge, went on to gain an unprecedented 13% vote in its favour at the company's AGM.
   
   Holders of American Depositary Receipts (ADRs), which are worth the equivalent of six Ordinary BP shares, are unable to co-file a shareholder resolution as individuals, although they may vote at the AGM. ADRs were issued when BP merged with Amoco and Arco. ADR holders must seek the support of BP's nominee, Morgan Guaranty Ltd in New York, if they wish to co-file a resolution. ADR holders have written to Guaranty Nominees Ltd to request that it act on their behalf in co-filing the resolutions, but they would only be counted as a single member, irrespective of the number of ADR holders supporting the request.
   
   
2. Three other shareholder resolutions were submitted to the BP AGM and rejected:
   • A resolution calling on BP to provide a risk assessment on drilling in the Arctic National Wildlife Refuge, submitted by US Public Interest Research Group, supported by Greenpeace and others.
   • A resolution filed by the Free Tibet Campaign calling on BP to divest from PetroChina, a Chinese oil company building a gas pipeline across Tibet.
   • A resolution filed by the Ecumenical Council for Corporate Responsibility calling on BP to formulate human rights policy commitments to apply to their strategic investments.

   The Arctic National Wildlife Refuge resolution and the PetroChina resolution are both being resubmitted. ECCR has decided not to refile.
   
   

3. The Summary for Policymakers of the IPCC Working Group III was approved on 3rd March 2001. The findings included:
   • Progress on technologies to reduce emissions has been faster in the last five years than previously anticipated particularly in relation to wind turbines, fuel cell technology, renewable biomass fuels.
   • Using known and currently available technologies global greenhouse emissions can be reduced below year 2000 levels in period 2010-2020 at zero net costs, with at least half of this achievable at negative costs ie at a profit.
   • The report confirms the finding of the 1995 IPCC report that earlier action to reduce emissions is needed.

   On 6 March, in a speech entitled 'Environment: the next steps', Prime Minister Tony Blair stressed the urgency of responding to the threat of climate change. He spoke of the need to develop renewable energy technologies, and of the enormous growth potential of the renewable energy sector, and said "I want Britain to be a leading player in this coming green industrial revolution". The speech is on http://www.pm.gov.uk.

    

    

BP branding

Oil giant BP has attempted to block four shareholder resolutions on the environment and human rights, due to be debated at the BP AGM on 19th April, using archaic 19th Century case law. The company is attempting to rule the resolutions out of order on a legal technicality.

Last year a similarly worded Greenpeace shareholder resolution was accepted as legal. The 2000 resolution, which called on BP to switch investment from oil exploration to renewable energy and to stay out of the Arctic National Wildlife Refuge, went on to gain an unprecedented 13% vote in its favour at the company's AGM.

"We are bemused at this turn of events", said Stephanie Tunmore, Greenpeace climate campaigner. "We can only assume that BP did not take us seriously last year until the vote was counted. This year the company has applied the strictest interpretation of one of the most technical points of law in an attempt to slam the shutters on legitimate debate."

"BP's behaviour shows an arrogant disregard and disrespect for its shareholders. Greenpeace believes that BP's investors have a right and a responsibility to consider the future of oil in the light of its contribution to climate change, and we will not be deflected by these tactics."

The resolution filed by Free Tibet Campaign calls on BP to divest from PetroChina, a Chinese oil company building a gas pipeline across Tibet without any consultation of local people or impact assessments.

"The Tibetan people, living under occupation, do not have the opportunity to speak freely about PetroChina's exploitation of Tibet, or BP's investment in the company," said Lorne Stockman of Free Tibet Campaign. "We hope that in the interests of transparency, more BP shareholders will come forward and support our efforts to speak out on behalf of those who are silenced."

These resolutions, along with others filed by the Ecumenical Council for Corporate Responsibility and the US Public Interest Research Group, have the backing of campaigning organisations, socially responsible and institutional investors as well as individual shareholders. BP's American shareholders have been excluded from sponsoring the resolutions as individuals, which has infuriated US investors.

Editor's notes:

• BP has insisted that if the resolutions are re-filed they must be redrafted as Special Resolutions. They would then require 75% of the vote to be passed rather than a simple majority.
• Holders of American Depositary Receipts (ADRs), which are worth the equivalent of six Ordinary BP shares, are unable to co-file a shareholder resolution as individuals, although they may vote at the AGM.
• ADRs were issued when BP merged with Amoco and Arco. ADR holders must seek the support of BP's nominee, Morgan Guaranty Ltd in New York, if they wish to co-file a resolution. ADR holders have written to Guaranty Nominees Ltd to request that it act on their behalf in co-filing the resolutions, but they would only be counted as a single member, irrespective of the number of ADR holders supporting the request.

Four resolutions have been submitted to the BP AGM. They are:

• A Greenpeace resolution calling on BP to publish a 'carbon transition' strategy showing investors how it intends to move away from the production and sale of fossil fuels, in response to climate change.
• A resolution calling on BP to provide a risk assessment on drilling in the Arctic National Wildlife Refuge, submitted by US Public Interest Research Group, supported by Greenpeace and others.
• A resolution filed by Free Tibet Campaign calling on BP to divest from PetroChina, a Chinese oil company building a gas pipeline across Tibet.
• A resolution filed by the Ecumenical Council for Corporate Responsibility calling on BP to formulate human rights policy commitments to apply to their strategic investments.

Further information:
Please contact:
Greenpeace press office: 020 7865 8255/85