London, United Kingdom– Energy giant BP on Thursday faces a shareholder revolt over its decision to slow its energy transition, with activist investors promising to block the re-election of the head of the board of directors.
Some of Britain’s biggest pension funds have warned that they will oppose the renewal of Helge Lund’s mandate at the annual general meeting in London.
Activist shareholders’ group Follow This, which wants “Big Oil to go green”, has also put forward a resolution calling for BP to be more ambitious in its climate objectives.
BP in February announced that it expected to boost its profits between now and 2030 by investing more in both renewable energy and hydrocarbons, slowing the pace of its transition.
Environmental group Greenpeace, which only last year was calling BP “the most ambitious” of the global majors, criticised the plans, accusing them of bowing down to investors and governments.
Five pension funds have announced that they will vote against Lund’s re-election, according to British media.
Among them is Nest, which is also backing Follow This’s resolution.
“If BP continues on this path we have serious concerns about them reaching their net zero goal and the long-term success of the company,” it said.
“We want to see them investing more in low-carbon solutions and renewables, instead of new oil and gas sites.”
Brunel, another pension fund, said it would vote against Lund’s re-election to underline its concern about BP’s “changes in strategy”.
Follow This believes that “a net-zero by 2050 aim is insufficient without a Paris-aligned aim for 2030”, referring to the 2016 agreement to limit global warming to below 2C and if possible 1.5C above pre-industrial levels.
“We recognise that some shareholders and other stakeholders may have different perspectives on the decisions we take,” the BP board said in response to the resolution.
“BP has already laid out a strategy, and a net-zero ambition and aims, that the board considers to be collectively consistent with the Paris goals.”
The NGO Fossil Free London has promised to disrupt the AGM in protest at the energy transition strategy.
Friends of the Earth wants BP and its fellow energy giants taxed more on their windfall profits from the hike in energy prices caused by the war in Ukraine, to help reduce soaring household bills.
