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BP Faces Shareholder Revolt Over Climate Targets
19 Apr
Summary
- Major shareholders oppose BP's climate targets and virtual meetings.
- Investors plan to vote against chairman Albert Manifold's re-election.
- Concerns raised over BP's shift from renewable energy.
BP is bracing for a substantial shareholder revolt, with significant opposition coalescing around its climate change objectives and a controversial proposal for online-only shareholder meetings. Key institutional investors, including Legal & General, Railpen, and the Local Authority Pension Fund Forum, are reportedly preparing to vote against the re-election of BP's chairman, Albert Manifold.
These investors are particularly concerned that BP has blocked a shareholder proposal from a Dutch campaign group. This proposal sought an explanation of how the company's recent strategic shift away from renewable energy would perform amid declining demand for oil and gas. The move towards virtual-only meetings by large companies is also contentious, with ongoing legal questions about their validity and ministers seeking to clarify the law.
Railpen, managing a £34 billion fund, stated that BP's proposal for online-only AGMs would "further limit opportunities for meaningful engagement." The fund emphasized it was voting against Manifold to underscore expectations of "effective governance, transparency and the protection of important shareholder rights." This action highlights a broader tension between corporate governance practices and shareholder activism.
