Nearly 50 major investors in BP (LON: BP) have called on the oil giant to let them vote on potential plans to scrap its climate goals.
BP is holding a strategy meeting next week where it is widely expected to pull back from renewable energy promises, which have made less money than expected in recent years.
Instead, the company is likely to refocus on oil and gas production in a bid to boost its share price and profit.
BP made about £7.2 billion last year, down one-third on the year before, after oil and gas prices fell from the highs seen in the wake of Russia’s invasion of Ukraine.
But the group of investors, which includes Scottish Widows, Hargreaves Lansdown and Royal London Asset Management arm, wrote to BP on Wednesday to say they expect a say on any plans.
“BP has previously offered a shareholder vote on its transition strategy and we expect a similar level of accountability to be maintained for future material strategy changes,” they wrote in a letter to BP chair Helge Lund, seen by the PA news agency.
A spokesperson for Royal London Asset Management added: “As long-term shareholders, we recognise BP’s past efforts toward energy transition but remain concerned about the company’s continued investment in fossil fuel expansion.
“Despite industry commitments, emissions from oil and gas companies are still rising, and we need to see tangible progress in aligning capital expenditure with credible low-carbon scenarios.
“If BP has decided to scrap its production target, we seek clarity on how capital allocation will shift to ensure resilience through the energy transition.”
The group of 48 investment and pension firms also includes Rathbones Investment Management, the Local Authority Pension Fund Forum and the University Pension Plan.
The demands will likely set the group of investors on a collision course with the US hedge fund Elliott Management, which recently built a roughly 5% stake in BP.
Elliott has a reputation for taking large stakes in struggling companies and demanding changes in management and strategy.
It is expected to demand that BP scraps climate goals including a promise to reach net zero carbon emissions by 2050.
Just three years ago, BP reported record annual profits of £23b.
But some investors are unhappy with its recent performance, amid a slump in its share price and lagging profit compared to competitors like Shell.
Elliott Management and BP were contacted for comment.
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