"Greenhouse gas emissions reductions have now been included as a factor in the reward of 36,000 employees across the group and around the world, including executive directors", the company said.
BP will start new efforts to better fight climate change by incorporating emissions goals into the payment of bonuses, as well as broaden reporting on its environmental efforts, starting in 2019.
Bruce Duguid, head of stewardship at investment firm Hermes EOS, praised BP's decision to disclose its carbon output.
It comes after the Climate Action 100+ initiative - which represents 320 investors managing more than $32 trillion (£24tn) of assets - proposed a resolution to be put to shareholders at the energy giant's annual generation meeting (AGM) this May.More news: Donald Trump: 'We've Got to Get Out of These Endless Wars'
"We will be open and transparent about our ambitions and targets as well as our progress against them", BP Chairman Helge Lund said in a statement.
"Investors are helping ensure climate change is firmly on the boardroom agenda, which is especially important for the oil and gas sector", Stephanie Pfeifer, a member of the global Climate Action 100+ steering committee and a former Deutsche Bank economist, said.
According to a Financial Times report, BP likely did not accept the Follow This resolution as it had previously said that third-party emissions are out of the control of energy companies. We are determined to advance the energy transition while also growing shareholder value.
BP will back a shareholder push for it to begin reporting on how its strategy fits with the Paris Agreement's goals, the British oil and gas major said on Friday.More news: Eastern Australia hit by once-in-a-century flooding
Shell, for example, said previous year that it would start linking executive pay to short-term carbon emissions targets in 2020 after coming under pressure from shareholders including the Church of England. "It's encouraging to see major companies such as BP moving in the right direction". It said, however, that Royal Dutch Shell did agree late a year ago to set carbon emissions targets including those from customers.
To align with Paris, BP would have to diversify into clean energy production, shrink current investments in oil and gas development, or otherwise reduce its full range greenhouse gas emissions.
The company would also have to evaluate whether each new material capital investment is consistent with the climate agreement.
Investors and environmentalists welcomed BP's announcement, while stressing they will continue to monitor its climate performance. To be aligned with Paris goals means adopting fundamental changes in the way business is done across the full scope of its activities - including reducing operational emissions, invested emissions, and product emissions.More news: European vehicle manufacturers ‘concerned’ about EU-Japan trade deal's impact