Activist Investor Urges Vote Against BP Chair Over Shift to Oil and Gas

Climate activist group Follow This is urging BP shareholders to vote against the reappointment of Chairman Helge Lund at the upcoming annual general meeting on April 17, in response to the company's recent shift back towards oil and gas. BP announced a significant reduction in its clean energy investments and a commitment to increase spending on oil and gas, contradicting its previous net-zero strategy embraced in 2020. Follow This argues that the decision to change strategy without consulting shareholders represents a governance failure, and they emphasize that investors should have a say in such pivotal decisions. The group's founder, Mark van Baal, criticized BP's leadership for ignoring shareholder concerns, particularly after the company faced pressure from activist investor Elliott Management, which now holds a 5% stake. Shareholders have missed the opportunity to file resolutions against the new strategy, leaving voting against Lund as the only recourse for dissenting investors. BP has stated that its engagement with shareholders indicated no demand for an advisory vote on the new direction, despite growing dissatisfaction among climate-focused investors.