ESG in Executive Remuneration: BP versus Shell (2020)

READING: 2 minutes (linked article: 5 minutes)

Oil & gas companies now have the complex yet exciting job to transition into becoming corporate leaders who finally tackle climate change and not just encourage it. Companies in the sector like Exonn, BP, Shell and Total, publicly disclose reports commenting to us that they are progressing to become ‘greener’ and want to implement more alternative fuel research & development into their operations. This is highly likely due to the pressures surrounding Environmental, Social and Governance (ESG) compliance which is playing a bigger role in their corporation’s social responsibility programme, rather than just from a purely ethical epiphany. Also, since climate change is one of the greatest battles the world is combatting and as we are becoming more aware of its devastating effects, investors are more conscious in supporting ethical investments over those which only bring back purely financial fortunes; investor support can be a big motivation factor for companies to rethink and revamp their [environmental ] policies and practices to be greener and more compliant to climate change legislation.

BP and Shell are the main two FTSE 100 Oil & Gas Companies in the UK and because of this they withstand a high amount of scrutiny regarding the nature of their operations and the bi-products it creates as a result. Regardless, they have demonstrated a willingness to become more ESG compliant through a number of sustainability development objectives and targets. In order to see which of the two companies would make a better investment, taking into account these changes, please click the link below.