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illuminem summarizes for you the essential news of the day. Read the full piece on CNN or enjoy below:
🗞️ Driving the news: BP (see sustainability performance) announced a major strategy shift, cutting annual investment in renewable energy to $1.5-$2 billion—more than $5 billion below previous forecasts
• Meanwhile, it will increase oil and gas spending to $10 billion per year to boost earnings and shareholder returns
• The company is also reviewing its Castrol lubricants business and plans $20 billion in divestments by 2027
🔭 The context: BP originally pledged in 2020 to cut oil and gas output by 40% by 2030, but later revised the target to 25%
• The shift comes as fossil fuel prices rebound, making oil and gas more profitable than renewables
• BP is under investor pressure, particularly from activist hedge fund Elliott Investment Management, to improve financial performance
🌍 Why it matters for the planet: BP’s retreat from clean energy weakens corporate climate commitments at a time when urgent action is needed
• It mirrors a broader trend in the energy sector, where companies are prioritizing short-term profits from fossil fuels over long-term climate goals
• Reduced investment in renewables could slow global progress toward decarbonization
⏭️ What's next: BP aims to raise dividends by at least 4% per share annually and plans $750 million to $1 billion in first-quarter share buybacks
• Investors are expected to welcome the shift, but environmental groups will likely challenge the move
• Other oil majors may follow suit, further impacting the energy transition
💬 One quote: “This is a reset BP, with an unwavering focus on growing long-term shareholder value.” — Murray Auchincloss, BP CEO
📈 One stat: BP now plans to invest $10 billion annually in oil and gas, five times its planned renewable energy spending
See here detailed sustainability performance of BP
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