“Show of force”: Investors deal blow to BP on oil and gas spending

ACCR is commenting on the results of today's BP AGM, in particular:

• 25.85% of BP shareholders voted in support of shareholder-proposed resolution 24, requesting disclosures on capital discipline on oil and gas investments, filed by Nest, Greater Manchester Pension Fund, Merseyside Pension Fund, London CIV, Wales Pension Partnership, and PUBLICA, together with ACCR.

  • This is the highest ever vote of support for a management-opposed resolution at BP.

• 52.53% of shareholders voted against management-proposed resolution 23 to revoke previous climate-related reporting, which failed to reach the required 75% threshold to pass

• 52.88% voted against management-proposed resolution 22 to permit virtual-only AGMs, which failed to reach the required 75% threshold to pass

• 18.23% voted against resolution 4, the election of the Chair, Albert Manifold

Commenting on the results, Nick Mazan, Oil and Gas Strategy Lead, ACCR, said:

“Today’s result is unprecedented and demonstrates that investors are fed up with BP’s lack of capital discipline and its approach to shareholder rights.

“This collective show of force puts the new BP leadership team on notice: the company must show its planned surge in upstream investment can deliver shareholder value.

“Investors have seen the numbers – and the numbers don’t lie. It’s encouraging to see over a quarter of shareholders challenging management on upstream spending given the low returns on investment to date, coupled with the uncertain demand outlook for high-cost oil and gas as the world electrifies at speed. BP and other oil and gas companies would do well to take note of today's result and to reconsider their default to volume growth.

“In our view it was a mistake for BP to expect to push through measures to undercut shareholder rights without resistance. Investors have communicated loud and clear to the company that brushing shareholders aside is unacceptable in public markets.”

Diandra Soobiah, Director of Responsible Investment at Nest, said:

“This level of support signals that investors want firmer assurances on BP’s oil and gas capital discipline—and clearer evidence of how it safeguards long-term shareholder value.
We want BP to reflect on how it can reassure investors, through clear, practical and comparable disclosures, that increased oil and gas expenditure will improve performance and deliver value for shareholders.”

Cllr Doug McMurdo, Chair of LAPFF, said:

“We look forward to BP’s plan to satisfy investors who voted in droves for quality information on how its new oil and gas investments will deliver long-term value for shareholders. We are disappointed at the recent behaviours of the company - namely, weakening governance, reducing transparency, and rolling back climate commitments - and hoped that a change in leadership would have put a stop to the “BP reset” mantra pushed throughout 2025.”

Background

Under the UK Corporate Governance Code, where there has been a vote of 20% or above against management, the company should set how it will consult shareholders to understand the reasons behind the result. It should also report back on its consultations 6 months after the AGM, and again in the annual report, where it should explain the impact that shareholder feedback has had on board decisions or proposed actions.