The oil and gas industry in Europe is at a crossroads.

The decisions the sector makes on where to allocate capital could make or break our collective efforts to limit global warming to 1.5°C, with massive implications for the economy, for communities and in particular the poorest and most vulnerable on the planet.

The recent announcements by BP that it is weakening its climate targets, and the none too subtle hints from Shell being read by the market that it is likely to do something similar, signals that the lure of short-term profit maximisation is trumping the long-term sustainability of these companies and of our planet.

A disorderly climate transition caused by delayed action will not only miss the goals of the Paris climate agreement but directly work against the financial interests of pension funds and other long-term investors and their beneficiaries.

The pivotal role of the sector is why the Church of England Pensions Board, alongside many other investors, has engaged intensely for many years with European oil and gas companies.

It is fair to recognise that we have seen genuine leadership from some of these companies, in no small part thanks to the dialogue with investors.

Companies have set targets and developed detailed strategies to navigate the energy transition.

While none of the major European players' targets and commitments are ambitious enough, they did set companies on a path that aligned more clearly with long-term investors.

Importantly, they also signalled the companies were seeking to be constructive actors in shaping a low-carbon future and that it was in their interests to do so.