Follow This, a shareholder activist group, has called for a vote against BP’s chair in a bid to put climate concerns on the agenda at the firm’s upcoming AGM.
The campaign group urges investors to vote against the reappointment of BP chair Helge Lund, in protest against the firm’s U-turn on climate and its decision not to consult shareholders.
BP, which has been struggling with falling share prices over the past year, announced that it was to significantly scale back its net zero ambitions at a capital markets day last month.
CEO Murray Auchincloss promised shareholders a “fundamental reset”, including a £10bn increase in investment on new oil and gas production and significantly scaling back investments in clean energy.
But the decision was not universally welcomed, with long-term asset owners raising concerns about the firm’s transition strategy and its failure to consult investors.
Last month, a group of investors including Robeco, Rathbones and Phoenix Group sent a letter to BP chair Helge Lund, urging him to give shareholders a say in its climate goals. Yet the appeal was ignored, with no formal vote on climate included in the agenda for the firm’s AGM, which is due to be held on 17 April.
Shareholders have also now missed a deadline to file resolutions. BP’s “fundamental reset” was announced after the deadline for filing resolutions had passed, leaving investors with no other options, Follow This founder Mark van Baal points out.
“Voting against the board is the only way for shareholders to express their dissent over BP’s refusal to allow a vote on its strategy U-turn.”
“A significant vote against Helge Lund’s re-election will send a clear message: BP’s leadership must listen to all shareholders, not just one alleged short-term activist investor,” adds van Baal, alluding to the activist investor Elliott, which has taken a £3.8bn stake in BP, becoming its third-largest shareholder. Elliott’s position has been widely interpreted as a push to adopt a wider focus on fossil fuels.
Other major shareholders are Norges Bank Investment Management, BlackRock, and Vanguard, according to MarketScreener.
BP investors push for a vote on climate goals
