Investors predeclare vote against BP chair in protest at climate U-turn
A group of major investors in BP have confirmed that they will oppose the reappointment of the company’s outgoing chair, in protest at the firm’s scaled-back climate ambitions
BP shareholders including L&G, Robeco, Nest and the LGPS pool Border to Coast have announced that they will vote against the reappointment of BP chair Helge Lund to express their dissatisfaction with the energy giant’s revised strategy.
L&G, which holds a 1% stake in BP, said it was “deeply concerned by the recent substantive revisions made to the company’s strategy” and the lack of consultation with shareholders, and would vote against Lund’s reappointment.
Similarly, Border to Coast stated that the absence of shareholder engagement had been a factor in its decision to oppose the chair’s reappointment.
“We are taking the unprecedented step of voting against BP on a raft of measures at its upcoming AGM due to its failure to put its strategy reset to a shareholder vote. In addition to voting against the re-election of the chair of the Board, we intend to vote against the chair of the Sustainability Committee and members of the Nomination and Remuneration Committees, as well as against its annual report and remuneration report,” said Colin Baines, stewardship manager at Border to Coast Pensions Partnership.
BP is due to hold its AGM this Thursday, with no climate resolution having been filed. This is because the firm announced a major overhaul of its climate strategy in February, after the deadline for filing AGM resolutions had passed.
The new strategy, announced in February, includes scaling investments in new oil and gas exploration through to 2027, while significantly reducing investment in renewable energy.
Shareholders including L&G, Robeco, Nest and Border to Coast had called for a vote on the new strategy, but the energy firm opted not to put the matter to a shareholder vote.
Opposition to Lund’s reappointment comes as campaign groups such as Follow This and the Australasian Centre for Corporate Responsibility have also spoken out against his continued leadership.
Norges Bank Investment Management, one of the largest shareholders in BP according to Market Screener, has decided to vote in favour of Lund’s reappointment. US hedge fund Elliott Investment Management, which recently acquired a 5% stake in the company, has been approached for comment by Net Zero Investor but declined to disclose its voting stance.
Other major shareholders, including US asset managers such as BlackRock, Vanguard and State Street, tend to declare their votes after the AGM has taken place.
The vote will be largely symbolic, as Lund has already announced plans to step down next year. However, it nevertheless sends a strong message, according to Nick Mazan, UK Company strategy lead at ACCR. “Whatever the size of the vote against Lund this week, a material percentage will be from investors concerned about the threat to value from successive rollbacks on climate, and the lack of accountability to shareholders along the way.”
BP’s change in strategy comes amid a global drop in oil prices, driven by growing market tensions over the threat of a global trade war. Analysts such as Goldman Sachs are now cutting their oil price forecasts below $60 a barrel for 2026, a level that would put pressure on the profitability of new oil exploration, which typically has higher break-even points.
“Investors are rightly concerned about BP’s retreat from capital discipline on its upstream business. Over the past five years, BP allocated six times more capital to its upstream business compared to its much-scrutinised low-carbon business, and yet it continues to underperform against the sector,” Mazan warned.
NZI podcast: unpicking BP's transition strategy with Nick Mazan
