Norway's sovereign fund supports BP chairman's reelection

The 'world's biggest' sovereign wealth fund of $2.2 trillion, Norway, announced on Saturday that it would vote for the reelection 'of BP Chairman Albert Manifold 'and 'other board-supported'resolutions' at the annual general meeting, April 23.

Norges Bank Investment Management, which runs the fund and operates it, said that they would support the board in its proposal to remove two climate reporting resolutions. Some BP shareholders had argued that these should be retained.

BP said that the two resolutions had been?superseded' by a more comparable and standardised reporting on climate change.

NBIM also voted with the board 'in voting against a shareholder proposal filed by climate group ACCR. The resolution asked BP to give'more details on how their capital allocation plans align wit shareholder value, including spending on oil & gas.

The fund stated on its website that it would not support shareholder proposals that appear to be too prescriptive with regard to a company's operations or strategy, or that set unrealistic deadlines, targets, or methods of implementation.

Glass Lewis, ISS and the influential proxy advisers Glass Lewis have all recommended that shareholders reject Manifold’s re-election 'bid' and other board-supported'resolutions'.

Separately the activist group Follow This'sought to?put?forward a resoluton on the financial risks associated with declining oil and natural gas demand. But BP excluded it from the ballot which prompted further criticism.

NBIM has a stake of 2.98% in BP, which is valued at $2.7billion.

Norway's wealth fund invests Norway's revenues from oil and gas in stocks, bonds, properties, and renewables. It holds stakes in 7,200 businesses worldwide, which is about 1.5% of listed equity. (Reporting and editing by Gwladys Fouche, Nerijus Adomiaitis and Jesus Calero)

(source: Reuters)