UK local authority pension funds are among a coalition, managing £191bn (€221bn) in assets, that has filed a shareholder resolution at BP, calling on the company to demonstrate how continued spending on new oil and gas projects will deliver value for shareholders.
The resolution – filed by the Australasian Centre for Corporate Responsibility (ACCR) alongside Local Authority Pension Fund Forum (LAPFF) members Greater Manchester Pension Fund, Wales Pension Partnership, Merseyside Pension Fund and London CIV, as well as NEST and Publica – asks BP to show it is taking a disciplined approach to capital expenditure and generating an acceptable return on capital for each new oil and gas project.
ACCR is asking BP to provide clarity on: the relative cost-competitiveness of each project; how the company accounts for cost overruns and delays; and how continued spending on exploration creates value for shareholders.
Research published by ACCR found that BP has spent $22bn (€19bn) on new conventional oil and gas projects over the past six years, generating just $900m in value under forward prices. A core concern for investors is the competitiveness of BP’s future project pipeline. BP would be $11bn more valuable if it halted exploration and the sanctioning of new conventional projects focusing on producing from existing resources, ACCR stated.
ACCR said its research shows that BP’s total shareholder returns (TSR) have underperformed both the market and its peers over three, five, 10 and 15 years. As part of a “reset” announced in 2025, BP is increasing spending on its upstream business by 17%. However, investors remain unconvinced that this addresses the root cause of its underperformance.
Diandra Soobiah, director of responsible investment at NEST, said: “NEST has engaged with BP since 2023. We view this resolution as an appropriate escalation of our engagement strategy, driven by our commitment to ensure the companies we invest in are appropriately managing transition risk.”
Backtracking on climate
Previously, the oil giant had positioned itself as a frontrunner on climate. In 2022, 88% of its shareholders voted in favour of its transition strategy in a ‘say on climate’ vote.
However, after record-breaking profits driven by the boom in fossil fuel prices in 2022, BP announced in 2023 that it planned to reduce oil and gas production by 25% by 2030 instead of 40% (as previously promised) and allocate less than planned to renewable energy.
The resolution comes ahead of the incoming chief executive officer, Meg O’Neill, joining BP after Murray Auchincloss stepped down.
Earlier this year, activist shareholder group Follow This filed resolutions at BP and Shell seeking clarity on how the oil majors plan to protect and grow shareholder value if oil and gas demand falls.
In 2025, asset owners challenged Shell’s LNG expansion case and pushed for clearer disclosures. Separately, nearly a quarter of shareholders voted against the BP chair. LAPFF has previously urged BP to show ‘genuine’ capital spending discipline.
