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Business Economy

BP Fiduciary Duty: Fossil Fuels Versus Renewable Energy

BP, a fossil fuel exploration and exploitation company is also known to have strong commitments to fighting climate change by also investing hundreds of millions of dollars in renewable energy.

Despite these green energy investments, a growing number of activists say BP is not doing enough.

According to the BBC, the company spends £12bn of its £15bn annual capital expenditure on crude oil and natural gas exploration and extraction, but also shells out $700m for new energy investments.

As a result, BP is active in fields such as biofuels, solar energy and electric car charging.

Some say there is a mismatch between the amount BP devotes to fossil oils and the amount it devotes to renewable energy investments.

But this raises the question of how BP should define its fiduciary duties.

Should it do more to maximize returns to investors now by concentrating spending on fossil fuels?

Or should it spend much much more on protecting the earth for its future investors through green investments?

Source: https://www.bbc.com/news/business-49330150

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