Shareholders mount unprecedented uprising against BP during annual general meeting in 2025
In a dramatic turn of events at the Annual General Meeting (AGM) of British energy giant BP, 24% of investors voted against the reappointment of chair Helge Lund. This significant shareholder dissatisfaction stems primarily from concerns that BP has weakened its climate commitments under activist pressure.
US hedge fund Elliott Management, known for its push for greater investment in fossil fuels, has reportedly pushed BP to cut low-carbon spending by 70% and reallocate $2 billion annually back to oil and gas projects. This strategic pivot has alarmed ESG-focused investors, who criticize the company for eroding net-zero ambitions and for failing to consult shareholders adequately on the new direction.
BP's February announcement of a "complete reset", scaling up fossil fuel extraction and backtracking on investment in renewables, came after the deadline for submitting shareholder proposals had passed. Major investors requested a vote on the updated strategy but BP opted not to include the issue on the AGM agenda. This prompted shareholder groups to call for a vote against the firm's leadership.
Border to Coast, one of the UK's largest pension funds, took the unprecedented step of voting against BP on a raft of measures, including against the re-election of the Chair, due to an inadequate transition plan and BP’s failure to seek a shareholder mandate for the change in strategy.
Nick Mazan, UK company lead for ACCR, criticized BP's inconsistency on capital discipline, particularly in upstream oil and gas projects. Colin Baines, stewardship lead at Border to Coast, highlighted shareholder dissatisfaction with BP's strategy reset and governance, stating that a 24% opposition was "significant".
Helge Lund defended BP's new direction at the AGM, stating that the company pursued too much while building new low-carbon businesses. However, Mark van Baal, founder of the campaign group Follow This, argued that the high vote against BP's chair sends a signal the firm cannot afford to ignore.
Diandra Soobiah, director of responsible investment at Nest, expressed concern about BP's strategic flip-flopping and its impact on investor confidence and trust. Soobiah also stated that BP lacks a credible transition plan and exposes shareholders to greater stranded asset risk.
This is not the first time a major company has faced shareholder revolt over climate concerns. In 2023, 15% of Toyota shareholders voted against chair Akio Toyoda in protest over the company's lack of transparency in climate lobbying, considered a major shareholder revolt at the time.
The result of the vote at BP's AGM highlights a growing division within the company's shareholder base, with some investors favouring the shift towards fossil fuels and others expressing concern over how the firm will meet its decarbonisation targets. Border to Coast plans to engage BP to publish a comprehensive transition plan that details how it will achieve its 2050 net zero target covering its new strategy and a post-2030 plan and put it to a vote at the 2026 AGM.
[1] Source: Financial Times [2] Source: Reuters [3] Source: The Guardian
- The concerns of shareholders regarding BP's weakening climate commitments have extended to environmental science, as they express worry about the company's net-zero ambitions and commitment to low-carbon projects.
- The 24% shareholder dissatisfaction with BP's leadership, as reported at the Annual General Meeting, has sparked debates within financial circles, particularly in personal finance and business, about the potential risks and returns of investment in the company.
- As social media platforms become more influential in shaping public opinion, popular discussion surrounding BP's shift towards fossil fuels has taken on an entertainment angle, with consumer brands and celebrities expressing their views on the company's climate policies.
- In an effort to mitigate the financial losses that could result from stranded asset risk, some ESG-focused investors are exploring opportunities in environmental science, seeking to capitalize on emerging businesses and technologies that contribute to climate change solutions.
