Oil major BP braces itself for shareholder revolt after scaling back its climate targets
BP, which was one of the first energy giants to announce an ambition to cut emissions to net zero “by 2050 or sooner,” has urged shareholders to oppose the resolution put forward by Follow This.
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BP is bracing itself for a shareholder revolt at its annual general meeting on Thursday — some of the U.K.’s biggest pension funds are planning to ratchet up the pressure on the oil major after it rolled back its emission reduction targets in the wake of record profits.
Dutch group Follow This, a small activist investor and campaign group with stakes in several Big Oil companies, has tabled a resolution at BP’s shareholder meeting.
It calls on the energy giant to align its climate targets with the landmark Paris climate accord and commit to absolute carbon emissions cuts by 2030. Those emissions cuts, Follow This says, should include emissions generated by customers’ use of their oil and gas, known as Scope 3 emissions.
The National Employment Savings Trust, the U.K.’s largest pension fund, the Universities Superannuation Scheme, Border to Coast and Britain’s Local Authority Pension Fund Forum have all indicated they will support the resolution.
Meanwhile, a separate shareholder rebellion could see some pension funds vote against the reappointment of chairman Helge Lund in response to the firm’s move to scale back its green pledges without shareholder consent.
A spokesperson for BP did not respond to a CNBC request for comment.
Follow This says it expects BP’s annual general meeting to be a “contentious” one, warning investors will be “rightfully concerned” about BP dialing back its climate strategy amid an ever-worsening climate crisis.
“We trust that investors who hoped that voting was not necessary in 2022, now realise that voting is crucial to compel BP to align with Paris,” Mark van Baal, founder of Follow This, said ahead of BP’s annual general meeting.
“Paris-aligned voting has to regain momentum in 2023.”
BP, which was one of the first energy giants to announce an ambition to cut emissions to net zero “by 2050 or sooner,” has urged shareholders to oppose the resolution put forward by Follow This, saying it encroaches on the board’s responsibility and accountability for the firm’s strategy.
It also described the resolution as “unclear,” “simplistic” and “disruptive.”
Proxy advisors ISS and Glass Lewis have recommended that shareholders of BP vote against the resolution tabled by Follow This. So, too, has Norway’s $1.4 trillion sovereign wealth fund, Reuters reported last week.
‘Very deep frustration’
Scientists have repeatedly warned that time is rapidly running out to stave off the worst of what the climate emergency has in store.
To be sure, the burning of fossil fuels, such as oil, gas and coal, is the chief driver of the climate crisis.
For investors, a warming planet is seen as a growing investment risk to their portfolios, and many shareholders are calling for improved disclosure from companies on what these risks are and how they are planning to mitigate them.
Lindsey Stewart, director of investment stewardship research at Morningstar, said that pension funds potentially voting against the reappointment of BP Chairman Helge Lund were “a good example” that investors intend to hold specific directors accountable for companies’ net-zero strategies this year.
“In investment stewardship, voting against a company chair is one of the strongest escalations a shareholder can implement. So, there’s clearly very deep frustration on the part of the pension funds who intend to vote against Helge Lund’s re-election as chair,” Stewart said.
BP had previously pledged emissions would be 35% to 40% lower by the end of the decade. It said on Feb. 7, however, that it was now targeting a 20% to 30% cut, saying it needed to keep investing in oil and gas to meet demand.
Morningstar’s Stewart said many BP shareholders were dissatisfied with the firm’s decision to adopt less ambitious net-zero goals without giving shareholders the opportunity to vote.
Bumper profits
Energy giants came under immense pressure from shareholders and activists to invest in clean energy as oil demand cratered during the peak of 2020 lockdowns.
But when the West’s five largest oil companies raked in combined profits of nearly $200 billion in 2022 as fossil fuel prices surged after Russia’s full-scale invasion of Ukraine, the push toward green reform lost momentum.
After ultimately failing with several climate resolutions in 2022, Follow This’ van Baal told CNBC earlier this year that it was clear from discussions with oil majors that they were once again determined to fend off activist and shareholder pressure and continue with their core oil and gas businesses.
Last week, Parker Hannifin launched what they’re calling the industry’s first certified Mobile Electrification Technology Center to train mobile equipment technicians make the transition from conventional diesel engines to modern electric motors.
The electrification of mobile equipment is opening new doors for construction and engineering companies working in indoor, environmentally sensitive, or noise-regulated urban environments – but it also poses a new set of challenges that, while they mirror some of the challenges internal combustion faced a century ago, aren’t yet fully solved. These go beyond just getting energy to the equipment assets’ batteries, and include the integration of hydraulic implements, electronic controls, and the myriad of upfit accessories that have been developed over the last five decades to operate on 12V power.
At the same time, manufacturers and dealers have to ensure the safety of their technicians, which includes providing comprehensive training on the intricacies of high-voltage electric vehicle repair and maintenance – and that’s where Parker’s new mobile equipment training program comes in, helping to accelerate the shift to EVs.
“We are excited to partner with these outstanding distributors at a higher level. Their commitment to designing innovative mobile electrification systems aligns perfectly with our vision to empower machine manufacturers in reducing their environmental footprint while enhancing operational efficiency,” explains Mark Schoessler, VP of sales for Parker’s Motion Systems Group. “Their expertise in designing mobile electrification systems and their capability to deliver integrated solutions will help to maximize the impact of Parker’s expanding METC network.”
The manufacturing equipment experts at Nott Company were among the first to go through the Parker Hannifin training program, certifying their technicians on Parker’s electric motors, drives, coolers, controllers and control systems.
“We are proud to be recognized for our unwavering dedication to advancing mobile electrification technologies and delivering cutting-edge solutions,” says Nott CEO, Markus Rauchhaus. “This milestone would not have been possible without our incredible partners, customers and the team at Nott Company.”
In addition to Nott, two other North American distributors (Depatie Fluid Power in Portage, Michigan, and Hydradyne in Fort Worth, Texas) have completed the Parker certification.
Electrek’s Take
With the rise of electric equipment assets like Bobcat’s T7X compact track loader and E10e electric excavator that eliminate traditional hydraulics and rely on high-voltage battery systems, specialized electrical systems training is becoming increasingly important. Seasoned, steady hands with decades of diesel and hydraulic systems experience are obsolete, and they’ll need to learn new skills to stay relevant.
Certification programs like Parker’s are working to bridge that skills gap, equipping technicians with the skills to maximize performance while mitigating risks associated with high-voltage systems. Here’s hoping more of these start popping up sooner than later.
SOURCE | IMAGES: Parker Hannifin.
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Based on a Peterbilt 579 commercial semi truck, the ReVolt EREV hybrid electric semi truck promises 40% better fuel economy and more than twice the torque of a conventional, diesel-powered semi. The concept has promise – and now, it has customers.
Austin, Texas-based ReVolt Motors scored its first win with specialist carrier Page Trucking, who’s rolling the dice on five of the Peterbilt 579-based hybrid big rigs — with another order for 15 more of the modified Petes waiting in the wings if the initial five work out.
The deal will see ReVolt’s “dual-power system” put to the test in real-world conditions, pairing its e-axles’ battery-electric torque with up to 1,200 miles of diesel-extended range.
ReVolt Motors team
The ReVolt team starts off with a Peterbilt, then removes the transmission and drive axle, replacing them with a large genhead and batteries. As the big Pete’s diesel engine runs (that’s right, kids – the engine stays in place), it creates electrical energy that’s stored in the trucks’ batteries. Those electrons then flow to the truck’s 670 hp e-axles, putting down a massive, 3500 lb-ft of Earth-moving torque to the ground at 0 rpm.
The result is an electrically-driven semi truck that works like a big BMW i3 or other EREV, and packs enough battery capacity to operate as a ZEV (sorry, ZET) in ports and urban clean zones. And, more importantly, allows over-the-road drivers to hotel for up to 34 hours without idling the engine or requiring a grid connection.
That ability to “hotel” in the cab is incredibly important, especially as the national shortage of semi truck parking continues to worsen and the number of goods shipped across America’s roads continues to increase.
And, because the ReVolt trucks can hotel without the noise and emissions of diesel or the loss of range of pure electric, they can immediately “plug in” to existing long-haul routes without the need to wait for a commercial truck charging infrastructure to materialize.
“Drivers should not have to choose between losing their longtime routes because of changing regulatory environments or losing the truck in which they have already made significant investments,” explains Gus Gardner, ReVolt founder and CEO. “American truckers want their trucks to reflect their identity, and our retrofit technology allows them to continue driving the trucks they love while still making a living.”
If all of that sounds familiar, it’s probably because you’ve heard of Hyliion.
Hyliion electric semi truck
Before it changed its focus to develop Carnot-cycle generators and gensets, Austin-based Hyliion built a number of EREV Peterbilts using the then-new 15L Cummins diesel as a generator and employing the same sort of battery and e-axle-arrangement as ReVolt.
In addition to being located in the same town and employing the same idea in the same Peterbilt 579 tractor, ReVolt even employs some of the same key players as Hyliion: both the company’s CTO, Chandra Patil, and its Director of Engineering, Blake Witchie, previously worked at Hyliion’s truck works.
Still, Hyliion made their choice when they shut down their truck business. ReVolt seems to have picked up the ball – and their first customer is eager to run with it.
“Our industry is undergoing a major transition, and fleet owners need practical solutions that make financial sense while reducing our environmental impact,” said Dan Titus, CEO of Page Trucking. “ReVolt’s hybrid drivetrain lowers our fuel costs, providing our drivers with a powerful and efficient truck, all without the need for expensive charging infrastructure or worrying about state compliance mandates. The reduced emissions also enable our customers to reduce their Scope 2 emissions.”
Page Trucking has a fleet of approximately 500 trucks in service, serving the agriculture, hazardous materials, and bulk commodities industries throughout Texas. And, if ReVolt’s EREV semis live up to their promise, expect them to operate a lot more than 20 of ’em.
SOURCES | IMAGES: ReVolt; via Power Progress, TTNews.
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With 272 miles of range and more room inside its walls than your first apartment, GM’s Chevy Brightdrop electric van is one of the best commercial EVs you can buy. And if you’re a Costco Executive member, you can get one for yourself or your business with an absolutely incredible $31,500 discount. (!)
Fleet electrification expert Tony Nisam took to LinkedIn yesterday to post a deal that he ran across at a Washington State Costco that stacks a $25,500 manufacturer rebate with $3,000 in “regular” Costco Member Savings, $2,750 in “LIMITED-TIME” Manufacturer to Member Incentives, plus an additional $250 for Costco Executive members.
Do a bit of math (add up 25,500 + 3,000 + $2,750 + 250), and you’ll calculate an almost unheard of $31,500 discount on one of the best, most capable commercial vans on the market – ICE or electric. And that’s before you factor in the 0% interest financing (72 mo.) being advertised at Blade Chevrolet, the Mount Vernon, Washington, where VIN 2G58J2TY6S9104313 (the exact van shown, below) is shown as stock number 16757.
If you’re not a Costco member yet and you’re looking for a new truck for your business or even a unique #vanlife ride with zero emissions, modern tech, and a nationwide dealer network, GM makes that $130 Executive membership seem like a no-brainer.
Kind of a big deal
“But wait,” says the floating, disembodied ghost of the great Billy Mays. “There’s more!” In addition to the $31,500 worth of discounts Costco Executive members get, there are deals to be had on chargers AND a number of other state and local utility incentives your business might qualify for, bringing the cost of adding a new Chevy Brightdrop to your fleet even lower. In northern Illinois, for example, ComEd commercial customers can get up to $7,500 in rebates for a new Brightdrop Zevo van.
Is a $39,000 price cut enough to get you to take a look at a new Brightdrop? At $45,235 (from a starting price of $84,235), can you afford not to? Head down to the comments and let us know.
SOURCE | IMAGES: Tony Nisam.
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