There is growing concerns that BP's strategic direction is increasing financial and climate related risks for investors. Credit: iStock
The Local Authority Pension Fund Forum (LAPFF) has recommended its members support a shareholder requisitioned resolution at BP’s 2026 annual general meeting (AGM) calling for enhanced disclosure on capital discipline, amid growing concerns that the company’s strategic direction is increasing financial and climate related risks for long term investors.
Resolution 24 – coordinated by shareholder group ACCR and co-filed by a number of LAPFF member funds with the forum's support – seeks clearer disclosure on how BP evaluates the cost competitiveness, execution risk, and long-term value of its oil and gas investments, following the company's decision to increase upstream spending after its 2025 strategic reset.
The LAPFF, which represents UK local authority pension funds and pools with combined assets of over £425bn, has stated these issues are fundamental to shareholder oversight, particularly as upstream investment decisions lock in emissions trajectories and expose the company to stranded asset risk for decades.
In its recommendations to members, the LAPFF noted that BP was previously regarded as a leader among oil and gas majors on Paris-aligned decarbonisation. However, it said that, following its February 2025 "fundamental reset," the company has increased oil and gas production, reduced investment in transition businesses, and lowered its 2030 climate ambitions.
The LAPFF said it is concerned that this strategic reversal, undertaken without shareholder approval, risks long term returns by weakening capital discipline and increasing exposure to transition risk.
In addition, the LAPFF also raised "serious governance concerns" – pointing to a pattern of actions that it said collectively reduce shareholder oversight and accountability.
It said these include proposals to allow virtual only AGMs, efforts to revoke binding shareholder led climate disclosure resolutions passed in 2015 and 2019, and the exclusion of a shareholder proposal from the 2026 AGM agenda.
The LAPFF said it views these steps as attempts to insulate the board from scrutiny at a time when transparency and robust governance are most needed – and recommended that its members vote against the re-election of the BP chair Albert Manifold as well as oppose changes to the articles of association permitting virtual only AGMs; reject the revocation of binding climate disclosure resolutions; and support the shareholder resolution seeking clearer disclosure on capital discipline and upstream investment decisions.
LAPFF said it believes these votes are essential to protect shareholder rights, strengthen accountability, and ensure BP's strategy is aligned with long term value creation in a rapidly changing energy landscape.
LAPFF chair Doug McMurdo said: "At a time when the physical repercussions of failing to address planetary heating hit home, expanding high cost fossil fuel investment without clear evidence of discipline or competitiveness is a material risk to long term savers.
"Robust corporate governance underpins a credible climate transition, translating ambition into action. We will not accept roll-backs on climate plans, which drive escalating emissions and the potential for long term value destruction. It is the responsibility of company chairs to ensure clear, consistent leadership that embeds climate resilience across the business for long-term stakeholder value."
McMurdo added: "BP appears to be dismantling climate accountability at precisely the moment when transition risks, are accelerating. This is not responsible stewardship of a systemically important energy company."
