BP Braces for Shareholder Revolt Over Climate Strategy and Governance

BP is entering its upcoming annual general meeting under intense pressure from a coalition of institutional investors and proxy advisers. The Local Authority Pension Fund Forum (LAPFF), along with influential firms Glass Lewis and ISS, has recommended that shareholders vote against the re-election of Chair Albert Manifold and several board-supported resolutions. The friction arises as BP shifts its strategic focus back toward its core oil and gas operations, scaling back previous ambitions in renewable energy. This transition coincides with the appointment of former Woodside Energy chief Meg O'Neill as CEO. Despite the internal turmoil, BP's stock has performed strongly, gaining nearly 32% this year amid speculation that the firm is a prime takeover target. At the heart of the dispute is BP's attempt to retire two climate-related reporting resolutions established in 2015 and 2019. While the board argues these disclosures are now duplicative of industry regulations, activists and pension funds view the move as a reduction in transparency. Tensions escalated further after BP excluded a proposal from the activist group Follow This, which sought a strategy for scenarios involving declining oil and gas demand. Investors are also pushing for 'Resolution 24,' supported by the climate group ACCR, which demands clearer disclosure on the long-term value and execution risks of fossil fuel investments. The outcome of the April 23 vote will serve as a critical bellwether for shareholder influence over the energy transition strategies of global supermajors.