ENERGY GIANT BP is facing a shareholder revolt over its decision to slow its climate promises, with activist investors promising to block the re-election of the head of the board of directors.

Some of Britain’s biggest pension funds have warned that they will oppose the renewal of chairperson Helge Lund’s mandate at an annual general meeting in London, with investors deriding the company’s plans to achieve carbon neutrality by mid-century.

BP had previously committed to relatively ambitious climate goals but did a reverse-turn earlier this year by reducing its targets and expanding investments in oil and gas.

“2050 is far too late. You need to take action now. It’s not good enough,” one demonstrator shouted out as BP executives addressed the gathering.

Another activist heckled: “As individuals you are responsible for the chaos you impose. Stop drilling for fossil fuels.”

BP and many of its peers are seeking to pivot toward cleaner energy and away from fossil fuels, sparking deep scepticism from environmental groups who accuse it of greenwashing and doing too little, too late — while profiteering from soaring energy prices on Russia’s war in Ukraine.

Activist shareholders’ group Follow This, which wants “Big Oil to go green”, has also put forward a resolution calling for BP to be more ambitious in its climate objectives.

However, Lund insisted that that the resolution was ” not the answer”. and that “what it calls for BP to do is unclear”.

The London-listed giant in February announced that it expected to boost its profits between now and 2030 by investing more in both renewable energy and hydrocarbons, slowing the pace of its transition.

Environmental campaign charity Greenpeace, which last year was calling BP “the most ambitious” of the global majors, criticised the plans and accused it of bowing down to investors and governments.

Five pension funds have announced that they will vote against Lund’s re-election, according to British media.

Among them is Nest, which is also backing Follow This’s resolution.

“If BP continues on this path we have serious concerns about them reaching their net zero goal and the long-term success of the company,” Nest said.

“We want to see them investing more in low-carbon solutions and renewables, instead of new oil and gas sites.”

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Brunel, another pension fund, said it would vote against Lund’s re-election to underline its concern about BP’s “changes in strategy”.

Follow This believes that “a net-zero by 2050 aim is insufficient without a Paris-aligned aim for 2030″, referring to the 2016 agreement to limit global warming to below 2C and if possible 1.5C above pre-industrial levels.

“We recognise that some shareholders and other stakeholders may have different perspectives on the decisions we take,” the BP board said in response to the resolution.

“BP has already laid out a strategy, and a net-zero ambition and aims, that the board considers to be collectively consistent with the Paris goals.”

The NGO Fossil Free London has also promised to disrupt the AGM in protest at the energy transition strategy.

The Friends of the Earth campaign group want BP and its fellow energy giants taxed more on their windfall profits from price spikes fuelled by Russia’s war on Ukraine to help reduce soaring household bills.

© AFP 2023