Legal & General Investment Management (LGIM), one of the UK’s most influential institutional investors, has declared it will vote against the re-election of BP’s chairman Helge Lund, citing concerns over the oil major’s retreat from its climate commitments.
The move signals growing shareholder unrest ahead of BP’s annual general meeting, as the FTSE 100-listed energy firm faces criticism for abandoning its 2020 pledge to cut fossil fuel production by 40% and scale up low-carbon investments tenfold by 2030. The revised strategy, unveiled at a recent capital markets day, commits instead to sustained growth in fossil fuel output—prompting allegations that BP had moved “too far and too fast” in its previous green transition.
Lund, who backed the earlier climate strategy, is now under fire for overseeing the reversal without seeking shareholder approval. Although he has announced his intention to step down by 2026, LGIM argues the process must be expedited to ensure “an orderly and meaningful transition.”
“We are deeply concerned by the recent substantive revisions made to the company’s strategy, coupled with the decision not to allow a shareholder vote on the newly amended climate transition strategy at the 2025 AGM,” LGIM said, calling the shift “a financially material and systemic long-term risk to our clients’ portfolios.”
BP’s troubles have been compounded by news that it expects a weak first-quarter performance in gas marketing and trading, following business sales in Egypt and Trinidad. The company has also flagged a rise in debt levels.
Meanwhile, activist hedge fund Elliott, which recently acquired a 5% stake in BP, is reportedly pushing for further leadership changes, with speculation mounting over the future of CEO Murray Auchincloss. Analysts, including Ashley Kelty of Panmure Liberum, believe the current strategy has failed to inspire confidence and that a broader leadership overhaul may be imminent.
