{"id":1721,"date":"2025-02-24T19:58:03","date_gmt":"2025-02-24T19:58:03","guid":{"rendered":"https:\/\/energyprofits.in-beta6.co.uk\/?p=1721"},"modified":"2025-02-25T09:21:28","modified_gmt":"2025-02-25T09:21:28","slug":"announcing-intention-to-abandon-renewables-bp-misleads-investors-by-blaming-low-carbon-strategy-for-poor-performance","status":"publish","type":"post","link":"https:\/\/energyprofits.in-beta6.co.uk\/?p=1721","title":{"rendered":"Announcing Intention to Abandon Renewables, BP Misleads Investors by Blaming Low-Carbon Strategy for Poor Performance"},"content":{"rendered":"\n<section class=\"post-intro\">\n    <div class=\"container container-narrow\">\n        <p><span style=\"font-weight: 400;\">It\u2019s not a secret that oil and gas giant BP has been underperforming compared to its industry peers, but the company has long attempted to place the blame on its low-carbon energy strategy and climate commitments rather than its core business struggles. Ahead of Capital Markets Day, Reuters broke the news that BP&#8217;s chief executive will <\/span><a href=\"https:\/\/www.reuters.com\/business\/energy\/bp-ditch-renewables-goals-return-focus-fossil-fuels-2025-02-24\/\"><span style=\"font-weight: 400;\">abandon a target to increase renewable generation 20-fold by 2030<\/span><\/a><span style=\"font-weight: 400;\">, returning the company\u2019s focus to fossil fuels.<\/span> <span style=\"font-weight: 400;\">But new analysis shows that BP has been misleading investors &#8211; and the public &#8211; through <\/span><a href=\"https:\/\/www.theguardian.com\/business\/2025\/jan\/16\/bp-to-cut-4700-jobs-3000-contractor-roles-costs\"><span style=\"font-weight: 400;\">relentless media campaigns<\/span><\/a><span style=\"font-weight: 400;\"> about the real reason for its massive profit loss and subsequent layoffs.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">A closer look at the data reveals that BP\u2019s financial setbacks in 2024 and early 2025 are more closely tied to the oil market\u2019s volatility and mismanagement of its fossil fuel assets rather than its low-carbon investments. Despite claims that green policies are dragging down profits, BP\u2019s spending on low-carbon energy remains minimal, and its share price fluctuations align more with market-driven trends than climate announcements.<\/span><\/p>\n<p><!-- wp:image {\"id\":1739,\"width\":\"725px\",\"height\":\"auto\",\"sizeSlug\":\"large\",\"linkDestination\":\"none\",\"align\":\"center\",\"style\":{\"color\":{\"duotone\":\"unset\"}}} --><\/p>\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1739 aligncenter\" src=\"https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/1-1-1024x576.png\" alt=\"\" width=\"769\" height=\"433\" srcset=\"https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/1-1-1024x576.png 1024w, https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/1-1-300x169.png 300w, https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/1-1-768x432.png 768w, https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/1-1-1536x864.png 1536w, https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/1-1-2048x1152.png 2048w\" sizes=\"auto, (max-width: 769px) 100vw, 769px\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p><strong><i>Market Performance Points to Oil and Gas, Not Green Policies<\/i><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Analysis of BP\u2019s returns in 2024 and early 2025 indicates that key drops in BP\u2019s share price\u2014particularly in June, July, October, and November of 2024\u2014were driven by underperformance in its core oil and gas business rather than its climate strategy. The market responded negatively to oil price fluctuations and concerns over BP\u2019s fossil fuel assets, not to its previous commitments to net-zero targets.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">BP initially announced in February 2020 that it would become a net-zero company by 2050, with plans to reduce oil and gas production by 40% by 2030. This was reiterated in August 2020. However, by February 2023, BP had already scaled back its targets, reducing the planned cut in oil and gas production to just 25%. In October 2024, it was reported that BP would entirely abandon its 2030 production reduction target in favor of increased investment in fossil fuel-rich regions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite BP\u2019s claim that its climate policies are hurting investor confidence, there is little evidence to support this assertion. Analyst recommendations remained largely stable in the wake of BP\u2019s climate-related announcements in 2020 and 2023. While \u201cbuy\u201d recommendations fell by 30% between February and August 2020, they rebounded by 23% after BP\u2019s February 2023 climate rollback. This fluctuation cannot be attributed solely to climate commitments but rather to the reality of oil and gas markets &#8211; an inherently unstable sector.<\/span><\/p>\n<p><!-- wp:image {\"id\":1743,\"width\":\"725px\",\"height\":\"auto\",\"sizeSlug\":\"large\",\"linkDestination\":\"none\",\"align\":\"center\",\"style\":{\"color\":{\"duotone\":\"unset\"}}} --><\/p>\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1743 aligncenter\" src=\"https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/2-1024x576.png\" alt=\"\" width=\"763\" height=\"429\" srcset=\"https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/2-1024x576.png 1024w, https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/2-300x169.png 300w, https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/2-768x432.png 768w, https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/2-1536x864.png 1536w, https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/2-2048x1152.png 2048w\" sizes=\"auto, (max-width: 763px) 100vw, 763px\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p><strong><i>BP\u2019s Low-Carbon Spending Remains Minimal, While Investors Remain Concerned<\/i><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Contrary to claims that BP is heavily investing in the energy transition at the expense of profitability, its low-carbon capital expenditures from 2020 to 2023 accounted for only 6% of total capital expenditure. In contrast, BP spent 19% on gas, some of which it conveniently includes under its &#8220;low-carbon&#8221; strategy. This means that BP\u2019s meaningful investments in renewable energy\u2014such as solar, wind, hydrogen, and carbon capture\u2014are a fraction of its overall spending, and in line with industry peers like Shell and TotalEnergies.<\/span><\/p>\n<p><!-- wp:image {\"id\":1745,\"width\":\"725px\",\"height\":\"auto\",\"sizeSlug\":\"large\",\"linkDestination\":\"none\",\"align\":\"center\",\"style\":{\"color\":{\"duotone\":\"unset\"}}} --><\/p>\n<p><!-- \/wp:image --><\/p>\n<p><span style=\"font-weight: 400;\">BP\u2019s inconsistent climate policies have sparked concerns among investors, with major institutional stakeholders questioning its commitment to the energy transition. 48 investors holding 2.5% of BP\u2019s shares <\/span><a href=\"https:\/\/www.ft.com\/content\/64109565-db98-4e33-b935-21d8cf574f27\"><span style=\"font-weight: 400;\">told the company they won\u2019t accept further cuts<\/span><\/a><span style=\"font-weight: 400;\"> to BP\u2019s net zero plan and the company will need to hold a vote if they want to scrap their climate commitments. In the press over the last few months, <\/span><a href=\"https:\/\/www.axa-im.com\/stewardship-and-engagement\/changing-our-climate-active-engagement-oil-gas-2024\"><span style=\"font-weight: 400;\">AXA Investment Managers<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.responsible-investor.com\/uk-asset-owner-says-bp-should-consult-investors-before-abandoning-climate-targets\/\"><span style=\"font-weight: 400;\">Border to Coast Pensions Partnership<\/span><\/a><span style=\"font-weight: 400;\">, and <\/span><a href=\"https:\/\/citywire.com\/elite-companies\/news\/we-re-concerned-esg-investors-react-to-bp-s-net-zero-backtracking\/a2409745\"><span style=\"font-weight: 400;\">Z\u00fcrcher Kantonalbank<\/span><\/a><span style=\"font-weight: 400;\"> have all expressed skepticism over BP\u2019s lack of transparency and failure to consult shareholders before scaling back its net-zero targets. Additionally, climate-focused investors like the Australasian Centre for Corporate Responsibility (ACCR) <\/span><a href=\"https:\/\/www.accr.org.au\/news\/new-research-bp%E2%80%99s-fossil-fuel-spending-beyond-the-boundaries-of-paris\/\"><span style=\"font-weight: 400;\">argue<\/span><\/a><span style=\"font-weight: 400;\"> that BP\u2019s capital allocation does not align with a meaningful energy transition.<\/span><\/p>\n<p><!-- wp:image {\"id\":1745,\"width\":\"725px\",\"height\":\"auto\",\"sizeSlug\":\"large\",\"linkDestination\":\"none\",\"align\":\"center\",\"style\":{\"color\":{\"duotone\":\"unset\"}}} --><\/p>\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1745 aligncenter\" src=\"https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/3-1024x576.png\" alt=\"\" width=\"760\" height=\"428\" srcset=\"https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/3-1024x576.png 1024w, https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/3-300x169.png 300w, https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/3-768x432.png 768w, https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/3-1536x864.png 1536w, https:\/\/energyprofits.in-beta6.co.uk\/wp-content\/uploads\/2025\/02\/3-2048x1152.png 2048w\" sizes=\"auto, (max-width: 760px) 100vw, 760px\" \/><\/figure>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">BP\u2019s attempt to shift the blame for its poor financial performance onto climate action does not hold up under scrutiny. The company\u2019s struggles in 2024 have been primarily linked to oil market volatility and its fossil fuel assets rather than low-carbon investments. Meanwhile, BP\u2019s actual spending on clean energy remains marginal, and investor sentiment reflects broader concerns about its inconsistent strategy rather than an aversion to climate commitments. Instead of misleading stakeholders, BP should focus on executing a clear and sustainable energy transition that delivers long-term value.<\/span><\/p>\n<p><!-- \/wp:image --><\/p>\n<p><!-- \/wp:image --><\/p>\n<p><!-- \/wp:image --><\/p>\n    <\/div>\n<\/section>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>BP\u2019s financial setbacks in 2024 and early 2025 are more closely tied to the oil market\u2019s volatility.<\/p>\n","protected":false},"author":3,"featured_media":1719,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[50,34,36],"tags":[],"location":[],"class_list":["post-1721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bp","category-fossil-fuels","category-net-zero"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.5 - 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