BP (LON:BP) is expected to step back from its usual climate-strategy-focus at its Annual General Meeting (AGM) later today, analysts have said.
Director of investment stewardship research at Morningstar Lindsey Stewart noted: “BP’s AGM looks set to avoid much of the drama of recent years. For the first time in a long time there are no resolutions from either management or shareholders addressing the company’s climate strategy.”
The company’s AGM will take place today at 11am at the BP International Centre for Business and Technology.
The AGM will cover a number of items, including the re-election of chairman Helge Lund and chief executive officer Murray Auchincloss.
Stewart added: “There was some dissatisfaction among shareholders at last year’s meeting that the company had reduced its climate ambitions without offering shareholders a say on the changes. This contributed to a 10% vote against the company chair at the 2023 AGM.
“It will be interesting to see whether any continuing dissatisfaction by climate-conscious shareholders manifests in further protest votes against BP’s directors. But I’d expect most shareholders will be more focused on how the new CEO plans to implement the current strategy.”
In the AGM notice meeting, Chairman Helga Lund noted that BP had seen a strong operational and financial performance in 2023, despite the ongoing complexity of the energy transition, economic uncertainty and the global conflicts.
“In 2023, it also became clearer than ever that the world needs a better, more balanced energy system. One that is secure, affordable and lower carbon,” he stated.
“Our strategic direction remains the same: to go from an international oil company to an integrated energy company. However, it is a strategy that must be flexible, requiring pragmatism in adapting to changes in the external environment.”
In addition, two shareholder advisories, Glass Lewis and ISS, issued reports ahead of the AGM saying they were satisfied with how the company handled the departure of BP’s former CEO Bernard Looney.
BP’s board voted last December to dismiss Mr Looney without notice following allegations he failed to disclose personal relationships with colleagues.
Both advisories recommended that investors support all of the board’s proposed articles at the company’s AGM.
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