BP Shareholders Advised to Oppose Chair Over Climate Resolution Snub
In a significant development for corporate governance, BP shareholders have been urged by a leading proxy adviser to vote against the company's chair, Albert Manifold, due to the exclusion of a climate resolution from the upcoming annual general meeting. This move highlights growing tensions between the energy giant and its investors over environmental transparency.
Proxy Adviser Raises Alarm on Transparency
Glass Lewis, a firm that advises major global investors, has recommended that shareholders oppose Manifold, who has held his position for just six months. The recommendation stems from BP's decision to block a proposal, tabled by the climate activist shareholder group Follow This, which called for the company to share its longer-term strategy under scenarios of declining oil and gas demand. According to Glass Lewis, this exclusion "further raises questions about transparency, shareholder communication and responsiveness to shareholder concerns."
The resolution was intended to prompt discussion at BP's annual general meeting on 23 April, but the board deemed it invalid and ineffective. A BP spokesperson stated that the company is focused on building a simpler entity following investor engagement, aiming for transparent, standardised disclosures that allow for clear comparisons across the industry.
BP's Strategic Pivot Back to Fossil Fuels
This controversy unfolds as BP, one of the world's largest oil companies, is reportedly shifting its focus back to oil and gas after a poorly received venture into renewables. Manifold, previously the head of building material company CRH, joined BP in October with a pledge to help the company "reach its full potential." Recently, Meg O'Neill, a former executive at ExxonMobil, became BP's chief executive, marking her as the fourth boss since 2023 and the first woman to hold the role.
In a staff memo, O'Neill acknowledged the "significant complexity" of the current operating environment, citing geopolitical tensions, conflict, rapid technological change, and shifting global energy demand. She emphasised BP's mission to deliver energy safely, reliably, and efficiently, both today and in the future.
Broader Shareholder Concerns and Voting Recommendations
The climate resolution issue is part of a larger pattern of shareholder discontent. Another advisory firm, ISS, has recommended that investors vote against BP's board request to retire two older proposals on climate impact reporting, arguing they are no longer relevant due to a more standardised framework. Glass Lewis has also advised shareholders to oppose BP's attempt to scrap these existing climate disclosures.
Last week, Follow This revealed that a group of 12 institutional investors plans to vote against BP's proposal to eliminate its current climate reporting. Mark van Baal, CEO of Follow This, noted that shareholder concerns have intensified since 2025, suggesting that over 25% of shareholders might oppose the resolution, which would be sufficient to block it.
This shareholder rebellion underscores the increasing pressure on energy companies to align with climate goals, even as they navigate volatile markets and strategic realignments. The outcome of the upcoming AGM could signal a pivotal moment for BP's governance and environmental commitments.
