LGPS Central to vote against appointment of BP chair

UK pension pool LGPS Central will vote against the reappointment of Helge Lund as the chairperson of oil and gas giant BP at the upcoming company AGM due to concerns over climate policy, as confirmed to Net Zero Investor.

Patrick O'Hara, director of responsible investment and engagement at LGPS Central, confirmed this move was directly related to BP reneging on its climate policy earlier this year, moving net zero timelines forward in contrast to the firm’s ‘Say On Climate’ proposals that had previously received majority shareholder support.

“We were disappointed with the company’s decision to scale back their plans to reduce oil & gas production. We would have welcomed an opportunity to express our views prior to this decision being taken. In the absence of such a dialogue and in the absence of an opportunity to vote on this revision to the company’s short term transition plan at this AGM, we consider it incumbent on us to vote against the chair”, said O’Hara.

LGPS Central will also support the proposal by activist group Follow This at the upcoming AGM. Follow This looks for BP to commit to absolute emissions cuts by 2030 in line with the Paris Agreement, including Scope 3 emissions

BP has urged shareholders to vote against the proposal, labelling it “unclear” and “disruptive”

O’Hara said: “We consider that this resolution is an appropriate ask for the management of BP and it aligns with our own engagement objectives, therefore we plan to support it.”

LGPS Central has combined assets of approximately £55 billion, and representing the retirement savings of around 1 million scheme members across over 2,000 employers.

BP’s AGM will be held in London on 27 April.

Earlier this year, Net Zero Investor investigated the damage done to the concept of engagement with the oil and gas sector following the shifting nature of BP’s net zero goals.