Will BP row back even further on its climate commitments now that Bernard Looney is gone? Greenpeace certainly fears so.
"Whoever takes the reins at BP must significantly build on Looney’s green ambitions, not walk them back," Greenpeace senior climate advisor Charlie Kronick warns. "Too often, corporate climate pledges evaporate with a CEO's departure; their choice of a new CEO will be a litmus test of the BP board’s climate credentials."
Until a permanent replacement is found, the job falls to chief financial officer Murray Auchincloss, a Canadian national who joined BP in July 2020 and helped Mr Looney steer the company through the Covid pandemic, a rapid exit from Russia following its invasion of Ukraine, last year's energy price shock and the ensuing cost-of-living crisis.
READ MORE: BP chief in shock resignation over past relationships
During his tenure Mr Looney launched an aggressive initial strategy to cut the company's hydrocarbon production by 40% by the year 2030. Even after that was watered down to 25% earlier this year, it remains the most radical reduction in oil and gas output this year among major oil companies.
The announcement that BP was scaling back on its climate commitments was in conjunction with the release of its annual results in February, with profits more than doubling to £23 billion as soaring fossil fuel prices helped the energy giant reach the highest earnings in its 114-year history. That was not a good look.
Nor was the following month's news that Mr Looney's annual pay packet more than doubled to £10 million thanks in large part to the soaring energy prices that turbo-charged BP's profits but have also put households throughout the UK under enormous financial strain.
READ MORE: BP profits targeted by Labour despite missing expectations
There has also been some disquiet among BP's investors who remain unconvinced whether the company can generate competitive returns from its non-hydrocarbon businesses. During the last three years the company's shares have underperformed those of rivals Shell, Exxon Mobil, and Chevron.
Analysts are therefore unclear whether Mr Looney's departure will lead to a change in direction.
"Depending on the new CEO, BP could theoretically roll back its transition plans further," analysts at Morningstar said in a note to investors. "But if the board likes the current direction, regardless of the lagging stock price, they will likely bring in someone who keeps BP on the same path."
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here