According to The Times, BP is currently facing a revolt from shareholders who are seeking to remove Helge Lund from his position as chairman due to the company’s decision to dilute its green commitments.
The report stated that the rebellion was gaining momentum, with five of the largest pension schemes in Britain intending to vote against Lund’s re-election in protest.
The National Employment Savings Trust and the Universities Superannuation Scheme have already declared their plans to vote against him, with Brunel Pension Partnership, a group of nine council schemes, also indicating their support for his ouster.
Additionally, LGPS Central and Border to Coast, two council pension umbrella groups, are expected to join the effort to remove Lund.
BP is facing the possibility of a second revolt at an upcoming meeting concerning executive pay. Glass Lewis, an advisory group, has recommended that investors reject BP’s remuneration report, as the company only docked £78,329 from the £10 million package of Bernard Looney, the chief executive, in relation to the deaths of four workers last year.
Shareholders are frustrated that BP reduced its emissions reduction targets in February without seeking their approval. They hope that by publicly announcing their intentions early, they can encourage other investors to join their protest.
Diandra Soobiah, head of responsible investment at Nest, was quoted in The Times as saying, “While it’s disappointing to see BP reneging on its climate commitments, what is particularly concerning is that they haven’t consulted shareholders and given us a chance to vote on such a significant decision. Actions like this undermine shareholders’ confidence in the board and their corporate governance.”
