Oil giant BP has today confirmed it will back a wide-ranging new shareholder resolution calling on it to publicly set out a corporate strategy that is consistent with the goals of the Paris Agreement.

In a surprise move BP announced this morning that it would use its upcoming AGM to support the resolution from the Climate Action 100+, which brings together over 300 institutional investors with around $32tr of assets under management. The company said the decision followed "constructive engagement" between BP and investors.

BP said it had supported the goals of the Paris Agreement, which include pledges to keep global temperature increases 'well below' 2C and build a global net zero emission economy this century, since it was brokered in 2015.

The company, along with a number of other oil majors, has publicly stepped up support for a low carbon energy transition and has increased investment in a raft of clean technologies. Most notably it undertook a high profile $200m investment in solar developer Lightsource BP and acquired electric vehicle charging network Chargemaster, alongside on-going investments in carbon capture and cleaner fuel projects.

However, campaigners and investors have argued that clean tech projects make up only a fraction of BP's capital expenditure and have warned its wider fossil fuel exploration strategy remains incompatible with the Paris Agreement, fuelling fears of a 'carbon bubble' and associated stranded asset risks.

BP said today it would move to address these concerns and "in accordance with the proposed resolution BP will describe how its strategy is consistent with the Paris goals, as well as setting out a range of additional related reporting". It added that more details will be provided on the new reporting requirements ahead of its AGM this Spring.

"BP is committed to helping solve the dual challenge of providing more energy with fewer emissions," said BP chairman Helge Lund. "We are determined to advance the energy transition while also growing shareholder value. We believe our strategy is consistent with the Paris goals. The additional reporting specified in the resolution will build on BP's history of progressive action in this area. We welcome the constructive engagement with Climate Action 100+ and, after careful consideration, have decided to support this resolution."

The move builds on the decision last year to set emissions targets across the group to deliver 3.5 million tonnes of "sustainable greenhouse gas emissions reductions" by 2025.

BP also announced today that those overarching emissions targets are to be included as a factor in the reward programme for 36,000 employees across the Group and around the world, including executive directors.

Should the new resolution be approved at the upcoming AGM BP said it will deliver the changes to its reporting regime from this year.

"This additional reporting will give investors better clarity about how BP can continue to deliver value through the energy transition in a way consistent with the Paris goals," Lund added. "We will be open and transparent about our ambitions and targets as well as our progress against them. We recognise that the trust of our shareholders, and society more widely, is essential to BP remaining an attractive and reliable long-term investment. And only by remaining a world-class investment can we most effectively play our part in advancing a low carbon future."

The move was welcomed by BP chief executive Bob Dudley, who hinted that the new strategy would not entail a full retreat from fossil fuels.

"Meeting the world's growing demands for energy while also greatly reducing emissions will require more than rapidly growing renewables - all forms of energy must be made cleaner, better and kinder to the planet," he said. "This is why our people are already in action across BP, seeking opportunities to reduce our emissions, improve our products and create new low carbon businesses."

He added that the new changes to the company's reward schemes would help to drive more rapid emissions reductions. "Building an emissions reduction target into the reward of people throughout BP further underlines the importance we place on this work," he said. "We expect it will catalyse even more ideas and activity and support BP playing our part in addressing the dual challenge."

The move was broadly welcomed by institutional investors who urged BP to now come forward with a credible decarbonisation strategy in line with the Paris Agreement.

"Investors are helping ensure climate change is firmly on the boardroom agenda, which is especially important for the oil and gas sector," said Stephanie Pfeifer, a member of the global Climate Action 100+ steering committee and CEO, Institutional Investors Group on Climate Change (IIGCC). "It's encouraging to see major companies such as BP moving in the right direction. Global carbon emissions need to be reduced urgently and investors expect other companies in the sector to follow suit."

Bruce Duguid, Head of Stewardship and lead co-ordinator of the resolution, Hermes EOS, said the move by BP was "good news for both investors and the planet".

"The decision by the BP board to support the resolution shows that this is a priority for the company and builds on progress to date, such as setting best in class methane intensity targets," he said.

The news follows a recent announcement by Shell that it too would link executive rewards to performance against the company's emissions targets. It also came in the same week as the oil giant continued its push into the EV charging market, announcing its New Energies division has signed an agreement to acquire US EV charging and energy management software specialist Greenlots.

The company said the deal would see Greenlots' technology and team become the foundation for Shell's continued expansion of electric mobility solutions in North America

"As power and mobility converge, there will be a seismic shift in how people and goods are transported," said Brett Hauser, CEO of Greenlots. "Electrification will enable a more connected, autonomous and personalized experience. Our technology, backed by the resources, scale and reach of Shell, will accelerate this transition to a future mobility ecosystem that is safer, cleaner and more accessible."

The deal follows Shell's 2017 acquisition of Europe's largest EV charging network, Netherlands-based NewMotion.