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While BP already aims to reduce emissions, the motion filed by
activist group Follow This ahead of an April 27 shareholder vote
calls on the company to align with the Paris climate deal's goal
to limit global warming.
Norges Bank Investment Management (NBIM), which operates the
Norwegian fund, said last year that it plans to take a tougher
line on companies that do not adopt credible climate plans.
It did not give a reason for rejecting the motion. But the fund
has said in the past that while it sometimes backs
environmental, social and governance (ESG) proposals put forward
by activist groups, it carefully judges each case on its merits.
Follow This in an emailed statement said NBIM as a major
investor should show leadership on climate issues.
"NBIM failed the first real test of its new climate voting
policy," Follow This founder Mark van Baal wrote.
The Norwegian fund, itself built on oil and gas revenue, owned
2.73% of BP's shares worth some $2.8 billion at the end of 2022.
BP's board has recommended that shareholders vote against the
resolution saying it was "unclear" what it wanted the company to
do.
Investor advisers ISS and Glass Lewis also recommended BP
shareholders oppose the resolution, while Britain's Local
Authority Pension Fund Forum (LAPFF) asked investors to back it.
In February BP rowed back on plans to slash its 2019 oil and gas
output levels by 40% by 2030, and now it envisages a 25% cut,
angering climate activists.
(Reporting by Nerijus Adomaitis; editing by Terje Solsvik and
Jason Neely)
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