BP activist investor opposes chair's reappointment

BP activist investor Follow This plans to call for a vote against Chair Helge Lund's reappointment at its April 17th shareholder meeting.

It claims he should have offered investors a say on scrapping green energy targets.

In February, CEO Murray Auchincloss said BP would slash spending on renewables and boost investment in oil and gas. That was a major overhaul of the group's 2020 strategy which planned a 40% cut to its oil and gas output by 2030.

Shareholders have not been offered a direct vote on the new strategy. This won 20% support for its climate resolutions at BP's 2021 annual general meeting. And 17% in 2023.

In a statement, the group said, "We don't want the chair to resign. We want him to heed the message that he has crossed a governance line and retrace his steps by offering shareholders a vote."

A BP spokesperson said the energy giant engages extensively across its shareholder base.

More than 88% of the group's shareholders in 2022 backed former CEO Bernard Looney's plans to cut oil and gas output. Most of these goals have been all but dropped, raising complaints from other shareholders that they were not given a say.

While climate-focused investors are unhappy at BP abandoning most of Looney's plans, BP's share price has shown that the 2020 strategy had failed to convince a broader investor base.

Over the last five years, BP's shares have risen around 88%, while Exxon has soared 246% and Shell 168%.

BP maintains that its ambition remains to be a net-zero company by 2050 or sooner, despite the recent strategic shift. The company has engaged extensively with its shareholder base following the announcement, stating that the majority are not calling for an advisory vote on the new plans. 

The upcoming shareholder meeting will serve as a critical indicator of investor sentiment regarding BP's revised energy transition strategy and the company's commitment to addressing climate change.