British energy giant BP is reportedly set to abandon its renewable energy targets and return to its fossil fuel roots in a dramatic shift aimed at regaining investor confidence. According to a report by the Financial Times (FT) on February 25, the company plans to announce its strategic pivot at an upcoming investor day on February 26. The move follows mounting pressure from shareholders, particularly US-based activist investor Elliott Management, which has been advocating for aggressive cost-cutting and a sharper focus on profitability.

BP’s decision marks a stark departure from the transformation strategy it presented in 2020 under then-CEO Bernard Looney. That plan aimed to cut oil and gas output by 40% while ramping up investment in renewables. However, the company has struggled to balance its green ambitions with investor demands for higher returns. Under its current CEO, Murray Auchincloss, BP has already scaled back its 40% reduction target to 25% as it sought to appease investors prioritizing short-term gains over long-term energy transition efforts.

Elliott Management, which holds a 5% stake in BP, has reportedly been pushing the company to pursue aggressive divestments, streamline operations, and boost oil and gas production to maximize shareholder value. The hedge fund has been vocal in its criticism of BP’s underperformance relative to its industry peers, including ExxonMobil, Chevron, and Shell-firms that have opted to continue expanding their fossil fuel production rather than aggressively pivot toward renewables.

Auchincloss, who took over as CEO in 2023 after serving as BP’s chief financial officer, is expected to unveil........

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