Investors Give BP April 1 Deadline for Climate Resolution
Investors gave BP until April 1 to add a climate resolution to its annual meeting agenda. The group will pursue legal action if the firm excludes the proposal.
Climate activist shareholder group Follow This, alongside a coalition of European investors managing a combined $1 trillion in assets, has issued a formal ultimatum to BP p.l.c.. The group is demanding that the energy major include their climate-focused resolution on the agenda for the upcoming shareholder meeting by April 1, threatening legal action if the company fails to comply. The resolution calls for the firm to disclose long-term strategies that account for scenarios involving a decline in oil and gas demand. Although the request was submitted, BP did not include the resolution in its official notice of meeting. In response, Follow This has instructed the law firm Mishcon de Reya to send a formal letter before action to the company, providing a one-week window to update the agenda for the annual general meeting (AGM). > Should the board now still fail to do so, our client will be left with no option but to seek the assistance of the courts to order the board to comply with its legal obligations. The AGM for BP is currently scheduled for April 23. Follow This has also submitted a similar resolution for the AGM of Shell plc, which is slated for May 19, though that company has not yet released its formal meeting agenda. Historically, it has been significantly easier for shareholders in the United Kingdom and broader Europe to place resolutions on meeting agendas than in the United States. Mark van Baal, the founder of Follow This, noted that the implications of this dispute extend beyond a single resolution. > Shareholder democracy in the UK is at stake; if BP can block a valid resolution without explanation, any company can, and we will not let that stand. While BP did not immediately respond to requests for comment regarding the legal threat, a company spokesperson previously stated that the board determined the resolution did not meet legal requirements after receiving legal advice. The company maintains that it already follows a clear strategy with multi-year targets aimed at driving long-term value for its shareholders.
