By Shadia Nasralla LONDON, April 2 (Reuters) - A group of European investors led by activist shareholder Follow This urged BP on Thursday to drop plans to scrap climate-reporting commitments and
Activist shareholder Follow This broadens climate campaign against BP
Investor Pressure and AGM Disputes Over BP’s Climate Commitments
By Shadia Nasralla
Activist Investors Challenge BP’s Climate Reporting Changes
LONDON, April 2 (Reuters) - A group of European investors led by activist Follow This urged BP on Thursday to drop plans to scrap some company-specific climate-reporting commitments and called on shareholders to vote against the move at the oil company's annual meeting this month.
The investors published an open letter opposing a BP-backed resolution that would rescind two decisions adopted in 2015 and 2019 requiring certain climate strategy and emissions reporting and linking climate performance to executive pay. BP needs at least 75% shareholder support to scrap the commitments.
BP’s Rationale for the Proposed Changes
BP's board has said the requirements targeted by its proposal have largely been superseded by mandatory disclosure frameworks that provide more comparable data.
It would still report climate data according to broader frameworks such as the Task Force on climate-related Financial Disclosures and climate-related Financial Disclosure Regulations, the company said.
BP’s Statement on Disclosure and Transparency
"Following extensive engagement with our largest investors we are fully focused on building a simpler, stronger and more valuable BP. That's why we are making these recommendations, to provide transparent, standardised disclosures that support clear comparisons across companies," a BP spokesperson said.
AGM Resolution Dispute and Legal Threats
AGM RESOLUTION DISPUTE
Dutch-based Follow This and the investor group with about 900 billion euros ($1 trillion) under management, including Bernische Pensionskasse and West Yorkshire Pension Fund, also warned of possible legal action after BP refused to put a separate shareholder resolution on the agenda of its April 23 annual general meeting.
The Contested Shareholder Resolution
That resolution, which Follow This says was filed by a group holding a combined BP stake of about 0.27%, calls on the oil company to disclose its longer-term strategy under scenarios of declining oil and gas demand. Follow This had given BP until Wednesday to include it, saying it would take the company to court if it did not comply.
"BP has responded confirming it will not comply, setting out its arguments. Follow This, its lawyers, and institutional investors are currently studying BP's response and discussing how to proceed legally," said the shareholder group.
Disagreement Over Submission Thresholds
Follow This has said it was told by BP that its resolution met the threshold for submission, but BP disputes this, saying it never agreed to table the resolution.
Broader Activism and Industry Context
Follow This’s Track Record with Shareholder Resolutions
Follow This has regularly used shareholder resolutions to press oil companies to publish more detailed energy-transition strategies. Shareholders in Europe typically find it easier to place resolutions on AGM agendas than in the United States.
Similar Actions Against Other Oil Majors
The group has filed a similar resolution ahead of Shell's AGM scheduled for May 19. Shell has yet to publish its agenda.
Financial Context
($1 = 0.8678 euros)
(Reporting by Shadia Nasralla. Editing by Mark Potter)
