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Sign UpInstitutional investors, concerned about BP’s undisciplined capital allocation on oil and gas projects, have filed a shareholder resolution calling on the company to demonstrate how its surge in upstream spending will deliver value for shareholders.
BP is under pressure from investors due to its long-term underperformance. ACCR research shows that BP’s total shareholder returns (TSR) have underperformed both the market and its peers over three, five, ten and 15 years.[1] As part of a “reset” announced in 2025, BP is increasing spending on its upstream business by 17%. However, investors remain unconvinced this addresses the root cause of its underperformance and want to see evidence of greater capital discipline.
The shareholder resolution is co-filed by UK and European pension funds, along with ACCR, including: Nest, which serves a third of the UK workforce, London CIV, Wales Pension Partnership, Greater Manchester Pension Fund, Merseyside Pension Fund, and PUBLICA. Together the co-filing group manages £191 billion in assets.
The resolution asks BP to show how it takes a disciplined approach to capital expenditure, in order to generate an acceptable return on capital for each new oil and gas project. The requested disclosures are to include:
The investors filed the resolution following unsuccessful attempts to engage with the company.
Enhanced disclosures will give BP’s investors the insights they need to assess whether the company’s plans to increase upstream investments is a value-accretive strategy for them.
The resolution represents an opportunity for incoming CEO Meg O’Neill to demonstrate to shareholders that the company’s stated commitment to capital discipline is reflected in its investment decisions and strategy.
ACCR research shows that BP’s US$22 billion investment in new conventional oil and gas projects over the past six years has only created US$0.9 billion in shareholder value under forward prices.[2]
The resolution and supporting statement can be viewed here.
Nick Mazan, Company Strategy, UK Lead, ACCR, said:
“Investors need transparency to assess whether BP’s new spending will create value - or simply repeat past mistakes. Growing upstream exposure without demonstrating clear capital discipline is a red flag for shareholders.
“Our research shows that the $22 billion BP poured into conventional oil and gas projects over the past six years has delivered limited value to shareholders. This track record gives investors every reason to question why this strategy would deliver better results now, particularly as future demand conditions for oil and gas are highly uncertain.
“Investors would be concerned if the new CEO, Meg O’Neill, doesn’t take the opportunity to genuinely reflect on the numbers and poor returns from oil and gas growth projects and whether increasing upstream capex will create more shareholder value.
“The filing of this resolution demonstrates that investors are not willing to passively accept profligate oil and gas spending and are willing to use their stewardship rights assertively to hold BP to genuine capital discipline.”
Diandra Soobiah, Director of Responsible Investment at Nest, said:
“BP has underperformed for the past decade, including the period they were prioritising oil and gas production. Now they have dropped their renewables strategy, investors need to be reassured that any expansion to their upstream oil and gas portfolio will be governed by robust capital discipline and generate sustainable returns.
“Nest has engaged with BP since 2023. We view this resolution is an appropriate escalation of our engagement strategy, driven by our commitment to ensure the companies we invest in are appropriately managing transition risk
“Our ask is for BP to make practical disclosures on how they will deliver disciplined capital allocation and long-term performance. Clear evidence and comparable metrics will help Nest, and all shareholders, assess whether the company’s new oil and gas projects will truly create value into the future.”
Alison Lee, Responsible Investment Manager at London CIV, said:
“The appointment of a new Chair and CEO is an exciting development for BP shareholders. This leadership change brings an opportunity for fresh thinking and a clear, objective review of the best paths to long term value creation. As a shareholder, London CIV would especially like to see stronger disclosures to ensure investors can clearly identify whether BP’s plans to increase upstream investment represent a genuinely value accretive strategy.”
A spokesperson for Greater Manchester Pension Fund said:
“The world needs a managed decline in fossil fuels and spending more money on fresh oil or gas reserves without demonstrating clear capital discipline raises concerns for shareholders.”
Cllr Brenda Hall, Chair of Merseyside Pension Fund Pension Committee, said:
“The appointment of a new Chair and Chief Executive marks an important opportunity for BP shareholders. New ideas are clearly needed at the company, as is an objective investigation of the best pathways for creating shareholder value.”
Cllr Doug McMurdo, Chair, LAPFF, said:
“LAPFF would be seriously concerned if the new CEO, Meg O’Neill, doesn’t reflect on the poor returns from oil and gas growth projects and whether increasing upstream capex will create more shareholder value”
About Greater Manchester Pension Fund
Greater Manchester Pension Fund is the largest LGPS fund in the UK, managing over 30 billion pounds on behalf of approximately 400,000 members.
About London CIV
London LGPS CIV Ltd (‘London CIV’) is the investment pooling vehicle for London-based Local Government Pension Schemes (LGPS).
About PUBLICA
PUBLICA, the pension fund of the Swiss federal government and closely associated organisations, manages over 41 billion pounds on behalf of its 110’000 active members and pension recipients.
About Merseyside Pension Fund
Merseyside Pension Fund manages over 10 billion pounds on behalf of 153,000 active, deferred and pensioner members of the Local Government Pension Scheme (LGPS).
About Nest
Nest is the largest workplace pension scheme in the country, with more than 13 million members. That's one in three UK workers. By 2030, we expect that number to grow to half of the entire UK workforce. Nest invests £60 billion in assets on its members’ behalf.
About Wales Pension Partnership
The WPP is a collaboration of the eight Local Government Pension Scheme (LGPS) funds that cover the whole of Wales. Collectively, the WPP partner funds hold over £25 billion in assets under management, invested across a range of listed and private funds.