Major UK asset owners are planning to vote against the reappointment of oil and gas company BP’s chair over concerns about recent climate and governance-related actions.
Railpen, one of the biggest pension funds in the country, and the Local Authority Pension Fund Forum (LAPFF) have both signalled their intention to vote against the reappointment of Albert Manifold at BP’s annual general meeting on 23 April.
Proxy voting and research firm Glass Lewis has also recommended that shareholders vote against Manifold’s reappointment next week, and Legal & General, one of BP’s biggest shareholders, has indicated that it will also oppose him.
LAPFF – which represents 87 Local Government Pension Schemes (LGPS) with £425bn in assets between them – has publicly objected to proposals from BP to allow virtual-only AGMs, as well as plans to revoke previous shareholder-led climate disclosure resolutions passed in 2015 and 2019 (see below).
It also criticised the exclusion of a shareholder proposal from Dutch campaign group Follow This.
Councillor Doug McMurdo, chair of LAPFF, said: “At a time when the physical repercussions of failing to address planetary heating hit home, expanding high-cost fossil fuel investment without clear evidence of discipline or competitiveness is a material risk to long-term savers.
“BP appears to be dismantling climate accountability at precisely the moment when transition risks are accelerating. This is not responsible stewardship of a systemically important energy company.”
Doug McMurdo, LAPFF
“Robust corporate governance underpins a credible climate transition, translating ambition into action. We will not accept roll-backs on climate plans, which drive escalating emissions and the potential for long-term value destruction. It is the responsibility of company chairs to ensure clear, consistent leadership that embeds climate resilience across the business for long-term stakeholder value.
“BP appears to be dismantling climate accountability at precisely the moment when transition risks are accelerating. This is not responsible stewardship of a systemically important energy company.”
Railpen seeks shareholder rights protections
Meanwhile, Railpen has made a rare pre-declaration of its voting intention in a statement released this week, which echoed the LAPFF’s concerns.
The £34bn pension fund criticised the BP board’s proposal to allow it to host online-only AGMs, which the pension fund said would “further limit opportunities for meaningful shareholder engagement”. It also said BP had given “limited clarity” on shareholder safeguards, adding that the parameters so far set out by the oil giant were “insufficient to ensure genuine engagement and that shareholders are truly heard”.
“Against this backdrop, Railpen is pre‑declaring its vote against the chair to reinforce our expectations around effective governance, transparency and the protection of important shareholder rights,” the pension fund stated.
On its website, BP has urged shareholders to support Manifold’s reelection, citing his “long track record of significant value creation as well as extensive experience in embedding decarbonisation and circularity standards into company strategy”.
Manifold has also “consistently championed strong governance at BP, entering into an extensive and ongoing dialogue with our largest shareholders since joining the board”, the company added.
Dutch group’s battle gets institutional backing
Follow This, a Netherlands-based group that lobbies for climate-focused resolutions at major oil companies, filed one such measure for inclusion at the BP AGM. This requested the disclosure of climate-related matters that were “material to any assessment of BP’s strategy, resilience, and long-term value”, according to a letter from Follow This to the BP board sent earlier this month.
The Falkirk, Lothian and West Yorkshire LGPS funds have all publicly supported Follow This over the matter, alongside several other institutional investors.
LAPFF and Railpen have strongly criticised BP over the exclusion. Railpen said it “represents a material governance concern”. The organisation added: “As a high-profile company, BP’s actions also have broader market implications, with the normalisation of such exclusions risking a weakening of shareholder democracy standards and contributing to a more litigious engagement environment.”
Both Railpen and LAPFF have stated their intention to vote against resolution 23 at the upcoming AGM, which would scrap two climate reporting measures agreed at previous shareholder meetings.
In a letter to shareholders, Manifold said the “retirement” of the two measures was due to them being “largely superseded” by subsequent mandatory disclosure requirements. He added that duplicating reporting measures would “reduce the clarity and usefulness of our reporting”.
Manifold also pointed out that BP had been reporting in line with the Task Force on Climate-related Financial Disclosures since 2021, as well as complying with the Climate-related Financial Disclosure Regulations since 2023 – although Railpen said these requirements “do not fully reflect the intent or scope of the original shareholder mandates” that the board wants to scrap.
