The oil giant faces shareholders' revolt on the green strategy

Oil giant COP Prepares for a long-term shareholders at its annual general meeting (AGM) on Thursday, with an unhappy investor choir providing to express their concerns concerning the turn of the company's green strategy.

A resolution planned for the re -election of the outgoing president of the TA, Helge Lund, was presented as an opportunity for investors to report dissatisfaction with climate change, corporate governance and the influence of the American hedge fund Elliott Management.

The major British besieged energy, which has lagged behind more hydrocarbon industry peers in recent years, has sought to resolve an identity crisis by launching a fundamental reset.

Seeking to rebuild investors 'confidence and strengthen short -term shareholders' yields, BP is committed to reducing renewable expenses and accelerating annual expenses for its main oil and gas activity.

The reset of the strategy has been widely welcomed by energy analysts, and the CEO of BP, Murray Auchincloss, has since said The pivot has attracted “significant interest” to the non -essential assets of the company.

British Asset Manager Legal & General, one of the main shareholders of BP with a participation of around 1%, said He intends to vote against Lund's re -election Thursday – a position that would challenge BP management recommendation.

Legal & General cited dissatisfaction with the major revisions of the company's energy strategy, in parallel with the BP's decision not to authorize a vote to the shareholders on the new management.

Legal & General's plans align with those of the International Director of Dress Assets, British NID and Frontier pension funds, as well as militant investors, including the Dutch group, follow it – who have all indicated that they would vote against the re -election of Lund.

The gigantic sovereign heritage funds and a number of us, American pension funds, however, reported that they will support Lund's re -election. Proxy Advisors Services of institutional shareholders and Glass Lewis also recommended a vote in favor of Lund, According to Reuters.

He opens the way to a confrontation of shareholders at the AGA of BP, with observers closely monitoring the level of opposition of investors to the re -election of Lund. Historically, the votes against the president of BP remained less than 10%.

A BP spokesperson refused to comment when contacted by CNBC.

BP renewed emphasis on oil and gas occurs at a time when the energy company listed in London is firmly in the spotlight as potential takeover target. Shell British rival and American oil giants Exxon Mobil and Chevron were all presented as possible suitors.

“We appreciate the important stages that BP has taken in recent years concerning its climate commitments and efforts, which we have supported by extensive and constructive dialogues, aimed at creating a long -term value as the climate transition takes place,” said the climate transition on April 11.

“However, we are deeply concerned about the recent background revisions made to the company's strategy as announced during the 2025 capital market day on February 26, associated with the decision not to authorize a vote on the shareholders on the new climate transition strategy in AGA 2025,” they added.

Legal & General said that BP's announcement earlier this month that Lund would move, probably next year, was considered “positively”, but continuous discomfort on the succession of the company means that it intends to vote against the AGA resolution.

Five years ago, BP became one of the first energy giants to announce plans to reduce Net Zero emissions “by 2050 or earlier. “As part of this thrust, BP is committed to reducing emissions up to 40% by 2030 and increasing investments in renewal projects.

The company reduced these 20% emission targets to 30% in February 2023, claiming at the time that it should continue to invest in oil and gas to meet global demand.

Dressco said In his justification, BP had refused to repeat a so-called voting “for example on the climate” for his revision of the strategy, despite the request for support of shareholders before for the objectives of previous and “more ambitious” transition of the company.

“We have repeatedly interrupted such a coherent feedback mechanism, especially in a public letter alongside other investors with 5 GB of GB GB in management,” said Michiel Van Esch, vote manager at Robeco.

“Consequently, we have increasing concerns concerning the resilience of the company thanks to the energy transition and by the consistency of its approach to climate governance, leaving us to vote against the president and the president of the security and sustainability committee,” he added.

Elliott Management, for its part, is largely considered to be exerting pressure on BP to minimize investments with low carbon content and prioritize oil and gas. He emerged Recently, the activist investor built an participation of almost 5% in BP, making it one of the largest shareholders in the company.

The activist shareholder follows this, which has a long history of push so that Big Oil is more to fight against climate change, said that the need to vote against Lund had not disappeared as a result of the news of his imminent departure. The group added that investors concerned about good governance should express their dissatisfaction.

“The vote against the board of directors is the only way for shareholders to express their dissent on the refusal of BP to authorize a vote on its strategy.

“Now, the board of directors has changed unilaterally without asking shareholders with a vote. This raises serious governance problems. It seems that BP management is afraid of its own shareholders,” he added.

BP shares have dropped by almost 10% for the start of the year.