Rising Pressure on BP Before Annual Meeting

• BP blocked a Follow This climate resolution requiring the company to set targets aligned with falling oil and gas demand, citing legal advice that the proposal was invalid
• Influential proxy advisers Glass Lewis and ISS recommended votes against BP management on multiple resolutions, including the re-election of Chair Albert Manifold who assumed the role in October
• BP stock has gained nearly 32% year-to-date in 2026, outpacing rivals, as the company shifts strategy toward fossil fuels under incoming CEO Meg O'Neill from Woodside Energy

Summary: Rising Pressure on BP Before Annual Meeting

BP faces mounting opposition from investors ahead of its April 23 annual general meeting, marking a significant governance challenge for the oil giant.

Key Developments

The Local Authority Pension Fund Forum (LAPFF), a major UK pension fund body, has recommended members vote against BP Chair Albert Manifold and several board-supported resolutions. This follows similar recommendations from influential proxy advisers Glass Lewis and ISS, along with Legal & General Investment Management, one of Europe's largest asset managers.

Core Issues

The controversy centers on BP's decision to block a climate resolution from Follow This (representing less than 0.3% of shares) that would have required the company to set targets addressing falling oil and gas demand. BP's board claims the proposal was legally invalid.

BP also seeks to retire two climate-reporting resolutions and permit virtual-only AGMs, citing investor demand for "simpler, standardized and comparable reporting."

Voting Recommendations

• Glass Lewis & ISS: Vote against management on climate reporting and chair election
• LAPFF: Oppose Manifold's re-election and support resolution 24 from climate group ACCR, demanding clearer disclosure on oil and gas investment evaluation
• Legal & General: Vote against BP on multiple resolutions

Market Context

Despite the controversy, BP shares have surged nearly 32% year-to-date, outperforming rivals. The company is pivoting back toward fossil fuels and away from renewables, with new CEO Meg O'Neill (former Woodside Energy boss) taking the helm. BP has been identified as a potential takeover target.

The outcome could set precedent for broader energy sector climate accountability and corporate governance standards.