Shareholder Dissent Grows Ahead of BP's Annual General Meeting

As BP Plc approaches its annual general meeting (AGM) on April 23, 2026, a significant wave of dissent from investors is emerging, particularly from the Local Authority Pension Fund Forum (LAPFF) and influential proxy advisers. This discontent centers around BP's recent governance decisions and its strategic pivot back to oil and gas, moving away from renewable energy initiatives.

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BP's AGM comes at a critical juncture as the company transitions under the leadership of new CEO Meg O'Neill, previously of Woodside Energy. The company has experienced a notable increase in share value, with a nearly 32% rise since early April 2025, positioning it as a potential takeover candidate. However, this financial performance contrasts sharply with growing concerns over BP's governance and climate-related commitments.

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The LAPFF, a prominent U.K. pension fund body, has taken a strong stance against BP's board, particularly targeting Chair Albert Manifold, who has held the position since October 2025. The LAPFF's recommendations are bolstered by the support of proxy advisers Glass Lewis and Institutional Shareholder Services (ISS), as well as Legal & General Investment Management, one of Europe's largest asset managers. These entities collectively influence how institutional investors vote at AGMs.

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In response to the dissent, BP's Chair Albert Manifold stated that the company aims to retire two climate-related resolutions, asserting that the requirements are "largely duplicative" of existing industry regulations. A BP spokesperson emphasized the company's commitment to transparency and standardized disclosures, arguing that these changes would not affect BP's net zero ambitions. However, Mark van Baal, founder of the activist group Follow This, criticized BP's decision to exclude their proposal, claiming it undermines shareholder democracy.

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Critics, including LAPFF and Follow This, have expressed serious concerns regarding BP's governance practices. LAPFF's recommendations to vote against Manifold's re-election and reject the retirement of climate resolutions stem from what they describe as "serious governance concerns." Van Baal highlighted the broader implications of BP's actions, warning that if the company succeeds in excluding shareholder proposals, it could set a dangerous precedent for corporate governance across the industry.

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As BP prepares for its AGM, the outcomes of the shareholder votes on various resolutions will be closely monitored. The LAPFF and other dissenting groups are advocating for increased transparency and accountability in BP's climate strategies. The results could have significant implications not only for BP's governance but also for the broader landscape of shareholder engagement in corporate decision-making.

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• “We're just talking about value creation for shareholders. BP wants to get as little shareholder influence as possible and they call it simplification. We want transparency,” — Mark van Baal, Founder of Follow This

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• “Referring to its plan to scrap these climate resolutions, a BP spokesperson told CNBC: "Following extensive engagement with our largest investors, we are fully focused on building a simpler, stronger and more valuable BP.” — BP Spokesperson

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• “If BP gets away with excluding a resolution, then shareholder democracy will take a big blow because if BP can get away with it then other companies can as well.” — Mark van Baal, Founder of Follow This

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