London, April 6, 2026, 12:16 BST
BP PLC is under renewed scrutiny with its April 23 annual meeting looming, as Institutional Shareholder Services (ISS) has urged investors to vote against the board’s proposal to drop two long-standing climate-reporting commitments. ISS’s recommendation, outlined in a note reviewed by Reuters, sets up an early challenge for new chief executive Meg O’Neill.
This timing isn’t incidental. ISS carries the weight to tip major shareholder votes, and it rarely urges investors to reject a board’s own plan. The dispute broke out just days into O’Neill’s tenure—he officially stepped in on April 1—marking the first high-profile challenge to BP’s renewed tilt toward oil and gas.
The board is urging shareholders to scrap resolutions from 2015 and 2019 that demanded additional, BP-focused transparency on emissions data, climate planning, and how executive compensation ties in with climate targets. In short, BP wants investors to repeal outdated commitments for climate reporting that go further than current general regulations.
BP argues mandatory disclosure rules have superseded its previous commitments, but insists it will continue releasing climate data through wider reporting frameworks. The company says it put forward the proposal after talks with top investors and aims to make disclosures simpler and more uniform.
ISS wasn’t buying it. The firm labeled the proposal “unprecedented in the UK context,” arguing the board hadn’t made a convincing case for reversing disclosures that nearly all investors had previously supported. ISS also urged shareholders to reject a plan for holding online-only meetings. Still, not every activist demand got its backing: the adviser suggested voting down an ACCR-backed resolution that called for additional proof BP’s oil-and-gas strategy would create value. Reuters
The campaign is gaining ground. Follow This, together with allies overseeing roughly 900 billion euros in assets, is pressing shareholders to reject BP’s position and is considering legal steps after the company declined to include a separate climate measure on its agenda—a move BP says it wasn’t obligated to make. Over at Shell, the Dutch activist group has lodged the same proposal. Shell’s annual meeting falls on May 19.
Timing isn’t on O’Neill’s side. BP’s first external CEO in more than 100 years told staff last week she’s after “clear direction and consistency” as performance picks up pace. Saul Kavonic, who heads energy research at MST Marquee, pointed to “really bold moves” she pulled off at Woodside. BP has now tapped Carol Howle as deputy chief executive, giving her the keys to the portfolio review and long-term strategy. Reuters
The shareholder dispute erupts as BP pushes through a tricky financial overhaul. The company has slashed billions off its renewables budget, put share buybacks on hold back in February, and committed to unloading $20 billion in assets by 2027. BP also wants to trim net debt, aiming to bring it down from $22 billion to somewhere between $14 billion and $18 billion by the end of 2027.
The result isn’t locked in yet. Scrapping the climate targets will require BP to secure backing from 75% of shareholders, and the company says major investors have already been sounded out. Even if the board comes out on top, BP still faces a legal fight with Follow This, plus ongoing debate about just how much detail it’s willing to share on oil and gas plans.
Another milestone for investors is just ahead. BP plans to release first-quarter 2026 numbers and update its dividend on April 28, with the announcement set for 07:00 BST—five days after its annual meeting. That will provide a quick test for the new leaders: are returns and the balance sheet actually getting stronger under their strategy?
