economy
Why pressure is mounting at oil giant BP ahead of its annual general meeting
Oil giant BP is bracing for a possible shareholder revolt at its upcoming annual general meeting.
TL;DR
- The Local Authority Pension Fund Forum (LAPFF) will recommend members vote against BP Chair Albert Manifold and other board-supported resolutions at the AGM.
- Influential proxy advisers Glass Lewis and ISS, along with Legal & General Investment Management, also recommend shareholders vote against BP's wishes.
- Dissent arises as BP pivots back to oil and gas and away from renewables, and amid the appointment of a new CEO.
- LAPFF urges votes against the re-election of Chair Albert Manifold, BP's bid to retire two climate reporting resolutions, and a virtual-only AGM resolution.
- Concerns are fueled by BP's exclusion of a shareholder climate proposal from Follow This, which sought longer-term strategy disclosure under scenarios of falling oil and gas demand.
- BP argues the excluded proposal was not valid, duplicative, and ineffective, while emphasizing its net-zero ambition remains unchanged.
- Follow This founder Mark van Baal states BP is prioritizing simplification over transparency and endangering shareholder democracy.
- LAPFF and Glass Lewis support a resolution from ACCR (resolution 24) seeking clearer disclosure on BP's oil and gas investment evaluations.
- ISS recommends voting against BP on resolutions concerning virtual-only AGMs and climate reporting.
- Legal & General Investment Management plans to vote against BP on multiple resolutions, including those related to climate reporting, virtual AGMs, and board elections.