ESG fund withdrawals reach £4bn this year amid ‘credibility problem’

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on The Telegraph or enjoy below:

🗞️ Driving the news: BP has reported its highest quarterly underlying profit in 18 years, reaching $8.5 billion in the third quarter of 2026, despite a $4 billion impairment linked to its renewable and low-carbon investments
• Surging oil prices and refining margins, driven by disruptions from conflicts in Iran and Ukraine, boosted earnings well beyond analysts' expectations

🔭 The context: BP's underlying profit quadrupled, exceeding forecasts of $7.3 billion
• Brent crude climbed from approximately $73 to $117 per barrel following the Iran conflict, while refining margins reached $46.70 per barrel, nearly three times their level a year earlier.
• Under new CEO Meg O'Neill, BP is accelerating its strategic shift towards oil and gas, restructuring operations and divesting renewable assets
• The company is also preparing to sell its North Sea operations, citing the UK's high taxation on oil and gas profits

🌍 Why it matters for the planet: BP's earnings surge illustrates how geopolitical instability and fossil fuel supply disruptions can reinforce the profitability of oil and gas, even as energy companies face losses from low-carbon investments
• The retreat from renewable assets raises questions about the pace of corporate energy-transition commitments and the capital available for decarbonisation

⏭️ What’s next: BP is continuing its portfolio restructuring, with final bids for its North Sea assets due in early December
Its future investment strategy will increasingly focus on oil and gas production, refining and shareholder returns, while policymakers face renewed pressure over taxation and energy security.

💬 One quote: “We know we need to be better stewards of our shareholders’ capital,” said BP chief executive Meg O'Neill, acknowledging the company's green investment losses.

📈 One stat: $8.5 billion: BP's underlying profit in the third quarter of 2026, its highest quarterly result in 18 years.

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