Activist shareholders ACCR and pension funds urge BP show that shift to oil will deliver value
UK pension funds, European activist shareholders and ACCR have urged BP to 'publish more information' to prove that its strategy to shift spending from low-carbon projects to oil and natural gas will bolster shareholder value.
BP's then CEO Murray Auchincloss had announced a strategy shift back to hydrocarbons a year earlier, claiming that this would increase profitability after BP's predecessor Bernard Looney made ill-fated attempts at renewables.
ACCR announced on Tuesday that it filed a joint resolution with a group of asset managers managing 191 billion pounds ($262 'billion). The resolution asked BP to explain why they believe shifting more money into oil and natural gas will be better for shareholders.
It wants BP 'to publish the relative cost-competitiveness for each project and to explain how it 'accounts' for delays, cost overruns and cost overruns.
The resolution is expected to be presented at BP's Annual General Meeting in April or may.
BP has declined to comment.
NEW BP CEO STARTS IN APRIL
The British oil giant is aiming to improve its profitability and share performance which has been lagging behind competitors such as Exxon for many years.
Meg O'Neill will replace Auchincloss in April, a seasoned?Exxon executive and former CEO of Australia's Woodside Energy.
ACCR spokesperson said that the co-filers represent 0.42% of BP's share value, with the Greater Manchester Pension Fund representing the largest percentage at 0.23%. Other co-filers include?London CIV PUBLICA Merseyside Pension Fund Nest and Wales Pension Partnership.
Shareholders backed a resolution last year by ACCR that questioned Shell's aggressiveness in the liquefied gas market. Around 21% of them supported it.
(source: Reuters)
