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BP - Fact Sheet
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IMPORTANT PROXY VOTING INFORMATION ON PROPOSAL
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| NO. 18 FOR BP AMOCO SHAREHOLDERS |
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| The Problem: |
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Climate change is one of the greatest threats facing
the planet today. Global warming caused by the burning
of carbon-based fuels could lead to flooding of
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| coastal regions; increased disease; and prolonged
heat waves leading to severe drought. Carbon pollution is the
largest contributor to human induced climate change. BP Amoco
is one of the largest carbon producers in the world. Our company
has acknowledged that climate protection will require a major
reduction in fossil fuel use and that this is likely to affect
the company’s main businesses. |
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| Profits at Risk: |
| Alternative energy sources will begin to dampen
demand for gasoline in the coming decades. Our company needs
to be ready for this market shift with investments in renewable
energy sources. But BP’s current strategy of oil and gas exploration
runs counter to this logic and threatens the destruction of
fragile wilderness areas. For instance, it continues to support
drilling in the Arctic National Wildlife Refuge. |
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| Shareholder’s Request: |
Because the potential impact on company profitability is
so high, shareholders deserve a detailed report on how BP
intends to transition away from a core business based on profits
derived from fossil fuels and towards one based on sustainable
energy sources. The report should provide details on:
- Reductions in aggregate greenhouse gas emissions;
- Investment in renewable energy as a proportion of overall
group investment;
- Changes in the composition of BP’s energy production
to reduce and eventually phase out its production and sale
of carbon-based fuels.
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| Transition to Alternative Fuels: |
Despite its pledge to move decisively into alternative
sources of fuels, BP still spends 50 times more on its oil and
gas business annually than on renewable energy.
One example of the potential of alternative energy: A study
by BP solar energy subsidiary Solarex showed that an investment
of $550 million in a 500 megawatt solar factory would reduce
production costs by 80% and generate an annual global market
of at least $100 billion. $550 million is the equivalent investment
of just three and a half weeks' oil exploration by BP. |
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| Analyst’s Report |
| A report on climate change and shareholder
value at BP released by financial analyst Innovest said: --Global
warming poses a "genuine risk" to BP’s corporate profitability.
--The company’s carbon risk exposure is not being captured by
traditional securities analysis, limiting shareholders’ awareness
of risk to future earnings. --A reduction in demand for gasoline
due to development of low emission vehicles could erode earnings
by up to 5% within 20 years.
The report concluded "shareholders would be justified
in seeking clarification of the company’s risk mitigation
strategy." That is what our resolution seeks to do.
(Click for full report)
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| Your YES Vote on Proposal #18 Will: |
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Encourage management to provide detailed plans on its
strategy for moving away from carbon-based fuels toward renewable
energy sources.
For more information, contact Conrad MacKerron at As
You Sow Foundation. Email: ;
phone (415) 291-9867.
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