CNBC | British energy major BP suffered a shareholder revolt at its annual general meeting on Thursday, following a tense clash with investors over corporate governance and climate transparency.
As the energy major pivots back to its core business of oil and gas and away from renewables, it failed to get majority shareholder approval on two highly anticipated motions, which would have permitted online-only AGMs and retired two company-specific climate disclosure obligations. Each resolution required a 75% vote in favor to pass.
Ahead of the AGM, BP’s board blocked a motion tabled by Follow This that would have required the company to share plans on creating value for shareholders under future scenarios of falling oil and gas demand.
The contentious decision had raised eyebrows among investors. Two influential proxy advisers, Glass Lewis and ISS, and one of Europe’s biggest asset managers, Legal & General Investment Management, had recommended shareholders vote against BP’s wishes.
Speaking to CNBC at the AGM, Follow This founder Mark van Baal described the resolution results as “extremely embarrassing” for BP.
