Shareholders have dealt BP a blow at its annual general meeting (AGM) today by rejecting two high-profile resolutions and expressing record-level opposition to its chair.
The oil major sought permission to overturn previously made climate disclosure commitments and move to virtual-only AGMs.
The results of today’s meeting have not been officially announced, but reports from those in attendance suggest that 53% of shareholders opposed the climate request, and 52% opposed the move to stop in-person annual meetings.
A third resolution, filed by NEST, London CIV, Wales Pension Partnership, Greater Manchester Pension Fund, Merseyside Pension Fund and Switzerland’s Publica pension provider, appears to have garnered 26% support.
It asked BP to explain “how it promotes a disciplined approach to capital expenditure in order to generate an acceptable return on capital for each new material oil and/or gas project”.
Management refused to let another climate proposal – filed by campaign group Follow This on behalf of a raft of Dutch pension funds – be put to the vote.
That proposal called on the oil major to disclose how its strategy would perform under scenarios of declining fossil-fuel demand.
BP’s decision to exclude it, which it said was based on legal advice, prompted alarm among some investors.
Railpen, Legal & General, the Local Authority Pension Fund Forum, Robeco and Border to Coast all pre-declared their intention to vote against at least some of today’s proposals, with many also voting against the election of Albert Manifold as BP chair in protest.
Manifold only took the reins six months ago, but is reported to have received 18% opposition in his first official election today.
Proxy adviser Glass Lewis said Manifold was ultimately accountable for BP’s decision to exclude the Follow This resolution, and therefore recommended shareholders vote against his election.
Fellow proxy adviser ISS recommended a vote in support of the new chair, in a move backed by Norges Bank Investment Management.
Speaking at the AGM, Manifold insisted BP had “overwhelming support for the direction of travel for the company”, but said “it seems very clear” that the two shareholder proposals “have not reached a simple majority”.
Mark van Baal, chief executive officer of Follow This, said: “Today, shareholders reminded BP’s board who it works for.”
