BP chairman in fight for survival as revolt grows over green retreat and refocus on oil
BP shareholders have been urged to oust its chairman after just six months in the job as the oil giant is hit by a mounting backlash over its green credentials.
The Local Authority Pension Fund Forum (LAPFF) is the latest group to call on the oil giant’s investors to vote against the re-election of Albert Manifold at the annual meeting this month.
The recommendation by the retirement fund body piles pressure on BP after influential advisory groups Glass Lewis and ISS also urged shareholders to oust Manifold.
Top-ten BP shareholder Legal & General Investment Management has already said it will vote against his re-election at the AGM on April 23.
The rebellion comes amid concerns over BP’s retreat from renewables and renewed focus on oil and gas following a botched foray into green energy.
The LAPFF, whose members taken together would be equivalent to a top-five shareholder, noted BP ‘was previously regarded as a leader among oil and gas majors’ on climate-change goals.
Under siege: BP chairman Albert Manifold (pictured) is under fire over the oil giant’s move away from renewables and renewed focus on oil and gas
But it said BP ‘has increased oil and gas production, reduced investment in transition businesses, and lowered its 2030 climate ambitions’.
The LAPFF said it is ‘concerned that this strategic reversal, undertaken without shareholder approval, risks long-term returns by weakening capital discipline and increasing exposure to transition risk’.
The body, which represents funds with assets worth over £425billion, also said BP’s plans for virtual-only AGMs and moves against climate-related reporting ‘raises serious governance concerns’.
LAPFF chairman Doug McMurdo said: ‘BP appears to be dismantling climate accountability at precisely the moment when transition risks are accelerating.
‘This is not responsible stewardship.’
Manifold only became chairman in October, and Meg O’Neill, BP’s first female chief executive in 117 years, took over last week.
She has vowed to refocus on oil and gas after the company’s ill-fated foray into renewables under previous bosses Bernard Looney and Murray Auchincloss.
BP said it has had extensive engagement with large investors and is focused on building a more valuable firm.
BP shares are up 36 per cent this year.
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