Shareholders revolt against BP chair amid climate clash

Outgoing BP chair Helge Lund received a near 25 per cent vote against his re-election at the UK oil major’s annual general meeting in a shareholder revolt.

- REBECCA SPEARE-COLE

The company’s board was dealt a bloody nose from shareholders as it faced conflicting pressures over climate goals during the meeting at its Sunbury-on-Thames hub yesterday.

The vote follows BP announcing a drastic shift away from investing in renewables in February after some shareholders pushed for a refocus on fossil fuels to boost its profits and share price, which have lagged behind its rivals.

But ahead of the AGM, a group of 48 institutional investors criticised the board for not offering a direct vote on the oil giant’s revised strategy, while environmental groups fiercely criticised the climate rowback.

A resolution for Mr Lund’s re-election received a provisional 24.3 per cent of opposed votes, which marks a major rebuttal for a FTSE 100 company. Mr Lund, who played a key role in setting BP’s green agenda, announced he will step down as the company plots a new course, meaning votes against his reelection were largely seen as a protest.

Tarek Bouhouch, from the activist group Follow This, argued a vote against of 10 per cent or more would have a “sole ESG purpose” and send a “strong signal”. According to the campaign group, a vote against the chair likely never breached 10 per cent in the firm’s history, or at least in the last decade.

It is also likely some shareholders opposed his re-election because they wanted to see more of a shift back towards fossil fuels.