BP is set to scrap its target to increase renewable generation 20-fold by 2030 and return focus to fossil fuels as part of a strategy shift announced on Wednesday. The company’s CEO, Murray Auchincloss, will announce the plan during a capital markets day investor update.
The move comes amid pressure from activist investor Elliott Investment Management, which has built up a nearly 5% stake in BP. Elliott is demanding an overhaul, including tighter cost discipline and scaling down green energy spending.
BP’s shares have underperformed rivals in recent years, and the company has already dropped its target to cut oil and gas output by 2030. The new plan will instead focus on growing core earnings (EBITDA) through annual percentage growth targets.
The company is also expected to make public plans to divest assets and cut other low-carbon investments to reduce debt and boost returns. BP’s capital spending has been a concern, with analysts predicting cuts of $2-$3 billion in annual low-carbon capex.
This shift marks a significant change in strategy for the energy major, which had previously pledged to rapidly grow renewables by 2030 under its predecessor. The move is seen as a response to investor concerns and the changing energy landscape, driven by the re-election of U.S. President Donald Trump, a climate sceptic who advocates for fossil fuels.
Source: https://www.reuters.com/business/energy/bp-ditch-renewables-goals-return-focus-fossil-fuels-2025-02-24