BP is bracing for a tense annual general meeting (AGM) on Thursday at its Sunbury-on-Thames hub in Surrey, where shareholders are expected to challenge the board over climate transparency and governance concerns. Security will likely be tight to prevent disruption from climate protesters.
Many investors are expected to vote against the election of BP's new chair Albert Manifold and other board-supported resolutions amid growing unease over shareholder transparency and engagement. The company refused to bring a shareholder climate resolution to a vote, while proposals to rescind previously passed climate resolutions and move future meetings fully online have also attracted pushback.
Proxy advisers Glass Lewis and ISS have recommended shareholders oppose some of BP's wishes. Legal & General and the Local Authority Pension Fund Forum (LAPFF) have also backed votes against the board at points. However, Norway's $2.2 trillion sovereign wealth fund, one of BP's largest investors, said it will support Manifold and other board-backed proposals.
The AGM comes amid BP's recent pivot away from renewables and back towards its core oil and gas business, which has been criticised by climate activists. BP will likely face conflicting pressure from investors wanting a turnaround after its failed greener agenda left it lagging rivals and facing takeover threats, while others want the board to capitalise on surging oil prices.
The meeting will also be the first time new CEO Megan O'Neill, who joined from Australian oil firm Woodside Energy, deals with shareholders. She becomes the first woman to lead the 117-year-old company and its third chief executive in under five years.
The board could be challenged over its proposal to repeal two previous resolutions requiring detailed climate reporting, which campaigners argue would reduce transparency. It may also face questions over rejecting a shareholder resolution from Dutch activist group Follow This, which is considering legal action.
