BP shareholders defeat climate proposals as pressure for change mounts

(Alliance News) - BP PLC late Wednesday said it would "engage with shareholders" on strategy ...

Alliance News 12 May, 2021 | 8:26PM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - BP PLC late Wednesday said it would "engage with shareholders" on strategy after a proposal calling for greater action on climate change was defeated at its annual general meeting.

BP said 79% of investors voted against a resolution proposed by shareholder group Follow This, which encourages oil companies to reduce their emissions. BP noted 21% of votes were in favour of the proposal.

The Dutch activist group sought to make BP set targets that are aligned with the Paris climate goals, in opposition to a recommendation by the board, but votes fell short of the 75% threshold needed to pass.

BP had said it already has a Paris-consistent strategy that will cut the carbon intensity of products it sells in half by 2050.

"We note that Resolution 13, a shareholder resolution on climate change targets, that the board of directors recommended not to approve, has been rejected by shareholders. However, we recognise that some shareholders (20.65% of votes cast) chose to support this resolution.," BP said.

"We will continue to engage with shareholders on our strategy, targets and aims so as to ensure their views are fully understood. We will publish an update on this engagement, in accordance with the UK Corporate Governance Code, within six months of the 2021 AGM," the oil major added.

The stock closed up 3.5% at 315.30 pence, the best performer in the FTSE 100 on Wednesday.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
BP PLC 322.55 GBX 1.80

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation

By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies       Modern Slavery Statement