BP PLC's Chairman, Albert Manifold, has successfully won his first election, overcoming sustained opposition from shareholders who questioned the board's transparency. This follows the exclusion of a key climate and clean energy transition resolution from the voting agenda. Preliminary voting data from the company's Annual General Meeting on Thursday showed that just over 81.8% of shareholders supported Manifold's appointment as Chairman. This result is stronger than the approximately 76% support received by his predecessor, Helge Lund, last year, when a symbolic protest vote was staged due to his pending departure.
Some institutional investors, including the eighth-largest shareholder Legal & General Group Plc, indicated they would vote against Manifold's appointment. Proxy advisor Glass Lewis & Co. also recommended that investors do so, citing the exclusion of a climate proposal submitted by activist group Follow This. Legal & General was among the investors that had previously opposed Lund's re-election, in protest of BP's renewed emphasis on fossil fuels and its potential impact on climate commitments.
This shareholders meeting was the first for both Manifold and new Chief Executive Meg O'Neill. O'Neill took the helm of the British energy major earlier this month, with a mandate that includes streamlining operations and refocusing on oil and gas production. Manifold, a former building materials executive, assumed the board leadership in October, having warned that difficult decisions lay ahead amid pressure from activist investor Elliott Investment Management for operational changes.
Norway's $2.2 trillion sovereign wealth fund was among the institutional investors that supported Manifold's election. BP has committed to increasing investment in oil and gas. This shift comes after Elliott and other investors urged the company to refocus on its core hydrocarbon business, moving away from the missteps made under former CEO Bernard Looney and Lund in 2020, when the company pivoted toward low-carbon and renewable energy.
This strategic reversal has positively contributed to a significant recovery in BP's share price and market capitalization after years of underperformance. So far this year, BP's stock performance ranks second only to TotalEnergies SE among major oil peers, with a gain of over 30% in dollar terms.
A proposal submitted by activist group Follow This sought to have BP disclose how it would adjust its strategy and create value if global demand for oil and gas declines in the future. However, after seeking legal advice, BP's board determined the proposal did not meet regulatory requirements and excluded it from the AGM agenda. The decision sparked strong backlash not only because the proposal was blocked from a vote, but also because several institutional investors and proxy advisors viewed it as indicative of insufficient board transparency and willingness to engage shareholders on climate transition issues.
Additionally, BP moved to rescind several older climate-related disclosure resolutions, arguing they have been superseded by new standardized frameworks. Opponents contend this effectively weakens shareholder oversight of the company's climate strategy.
BP has now clearly repositioned its strategic focus back onto its core oil and gas business. Under pressure from new management and activist investors like Elliott, the company has publicly pledged to boost investment in hydrocarbons, emphasizing production growth, operational efficiency, and improved returns. This shift is seen by markets as a reversal from the "low-carbon pivot" initiated in 2020.
In essence, BP's current approach is not an abandonment of all climate commitments, but a de-prioritization of climate goals in favor of hydrocarbon profitability. From a capital markets perspective, this reorientation has supported near-term share price and valuation recovery, yet it remains the root cause of dissatisfaction among climate-focused shareholders.
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