Mr Carl-Henric Svanberg
Chairman
British Petroleum p.l.c.
1 St James's Square
London
SW1Y 4PD
18th August 2015
Dear Mr Carl-Henric Svanberg,
In the important decision-making period surrounding COP 21 in Paris this December, we are
writing about BPs public policy position on climate change. Whilst we welcome the progress that
BP is making in this area, we are concerned by the companys continued membership of EU trade
associations whose activities appear inconsistent with BPs own position.
We would first like to commend your decision to leave the American Legislative Exchange Council
(ALEC), an association which has lobbied in ways that seem inconsistent with BPs position on a
number of important policy areas including climate change. We also recognise the various
initiatives that BP promotes which indicate the company is aware of the challenges that climate
change present, including your recent announcement that Something substantial needs to be
done. We are conscious of that ... we encourage policymakers to move forward on this when they
meet in December.1 Such statements suggest that BP wishes to play a positive role in the evolving
climate debate.
However, BP remains a member of various EU trade associations that have influenced climate
change policy in an undesirable manner. A recent study by the Policy Studies Institute (PSI)
indicates that the lobbying undertaken by BusinessEurope, Cefic, FuelsEurope and the
International Association of Oil and Gas Producers (OGP) is inconsistent with BPs recent
statements on climate change.2 This research shows that these trade associations contributed to
obstructive lobbying on two important pieces of legislation: the 2030 framework for climate and
energy policies, and the consultation on structural options to strengthen the EU Emissions Trading
System (ETS).
For example, the PSIs research indicates that BusinessEurope opposed backloading the ETS the
act of freezing the auctioning of CO2 permits despite the fact that this is widely seen as necessary
for securing a strong carbon price and reviving the systems incentive effect. The PSIs findings
show that Cefic has similarly argued against backloading, and taken the position that top-down
climate targets should only be set in the case of a substantial global agreement a position which
seems excessively onerous and discourages the EU from taking leadership on setting ambitious
targets. FuelsEurope argued against targets for renewable energy, and OGP has broadly supported
the view that structural reforms of the ETS are undesirable and that low-carbon technologies
should not receive governmental preference.
These lobbying positions seem inconsistent with BPs apparent recognition of the need for climate
action. There is a need for greater transparency on the alignment of your own climate position with
that of trade associations supported through membership or other means. We are writing to urge
that in cases where there appears a misalignment, for BP to review its membership and take action
to publicly distance the company from inconsistent policy positions. Similar actions have been seen
recently with Unilever leaving BusinessEurope, and Shell exiting ALEC as companies become
increasingly concerned about the negative effects associated with continued affiliation.
Macalister, T. (2015) BP boss widens transatlantic rift in energy industry over climate change, The Guardian.
Available online from: http://www.theguardian.com/business/2015/jun/10/bp-boss-widens-transatlantic-rift-inenergy-industry-over-climate-change
2 Fagan-Watson, B. and Elliott, B. and Watson, T. (2015) Lobbying by Trade Associations on EU Climate Policy, Policy
Studies Institute, University of Westminster. Available online from:
http://www.psi.org.uk/pdf/2015/PSI%20Report_Lobbying%20by%20Trade%20Associations%20on%20EU%20Cli
mate%20Policy.pdf
1
Such moves would reassure shareholders of the consistency of your position on climate change.
They would also be valuable in providing a counter-balance to the unhelpful positions that some
associations have historically taken on climate and energy polices. These associations gain
legitimacy by being able to say that they speak on behalf of major industry players like BP. Your
withdrawal would help undermine this claim.
The challenge of climate change requires decisive and timely action. We hope BP will show
leadership in ensuring that the lobbying being done on your behalf is in line with this need.
We look forward to your response. Please send it to Juliet Phillips, juliet.phillips@shareaction.org,
ShareAction, 16 Crucifix Lane, SE1 3JW.
Yours sincerely,
Lauren Compere
Managing Director and Director of Shareholder Engagement
Boston Common Asset Management
Arne Lw
Head of Corporate Governance
AP4 Swedish National Pension Fund
David Adkins
Chief Investment Officer
The Pensions Trust
Phil Vernon
Managing Director
Australian Ethical Investment
Jon Dunn
Trustee
UNISON Staff Pension Scheme
Helen Cadbury
Chair
Barrow Cadbury
Stephen Viederman
Chair, Finance Committee
Christopher Reynolds Foundation
Nick Perks
Trust Secretary
The Joseph Rowntree Charitable Trust
Natasha Landell-Mills
Head of Environmental, Social and Governance Research
Sarasin & Partners LLP
Tim Smith
Director of Environmental Social and Governance Shareowner Engagement
Walden Asset Management
Natasha Lamb
Director of Equity Research & Shareholder Engagement
Arjuna Capital Ltd
Stephen Power SJ
Treasurer
Jesuits in Britain
Sonia Kowal
President
Zevin Asset Management, LLC
James Perry
CEO
Panahpur
Julian Corner
Chief Executive
LankellyChase Foundation
Jonathan Gillett
Chair
Polden-Puckham Charitable Foundation
David Cutler
Director
The Baring Foundation
Sarah Butler-Sloss
Founder Director
Ashden Trust
Julian Sainsbury
Trustee
JJ Charitable Trust
Mark Sainsbury
Chairman
Mark Leonard Trust
Jamie Arbib
Principle
Tellus Mater Foundation
Lincoln Pain
CFP, AIF
Effective Assets
Susan Smith Makos
Vice President of Social Responsibility
Mercy Investment Services, Inc.
Mary Beth Gallagher
Acting Director
Tri-State Coalition for Responsible Investment
Catherine Howarth
Chief Executive
ShareAction
