BP Leadership Faces Shareholder Advisory Backlash Ahead of Key Votes

ISS and Glass Lewis criticize BP's climate reporting and agenda decisions, challenging new leadership ahead of a pivotal shareholder vote on April 23.

Two prominent proxy advisory firms have issued critical recommendations targeting BP's board in the lead-up to the company's annual general meeting. The focus of their dissent centers on the energy giant's approach to climate-related disclosures, applying pressure to a leadership team that is still in its early stages.

Unprecedented Move Draws Scrutiny

Institutional Shareholder Services (ISS) raised concerns on April 6 regarding BP's proposal to retire two older climate reporting obligations established in 2015 and 2019. The company contends that newer, standardized frameworks provide greater clarity and improved comparability. ISS, however, described the plan as "unprecedented in the British context" and found the board's justification insufficiently persuasive.

The following day, on April 7, Glass Lewis recommended shareholders vote against the re-election of board chairman Albert Manifold. This advice stemmed from the board's decision to omit a climate resolution from activist group Follow This from the AGM agenda. That proposal would have required BP to discuss its long-term strategy under scenarios of declining oil and gas demand.

A Delicate Moment for New Executives

The timing of this scrutiny is particularly challenging. Chairman Albert Manifold has been in his role for only approximately six months. Chief Executive Officer Meg O'Neill assumed her position on April 1, 2026. Furthermore, the recent appointment of Carol Howle as deputy CEO, who will oversee the trading business alongside the ongoing portfolio review and strategic development, adds to the period of transition.

Tensions with climate-conscious investors are not new. They have been simmering since BP scaled back its commitments in the clean energy sector last year. The annual meeting on April 23 will serve as a crucial test, revealing the level of support the board retains despite these negative advisory opinions.

Shortly after the AGM, on April 28, BP will release its first-quarter 2026 financial results. A significant recent surge in Brent crude prices, which have climbed above $110 per barrel, is expected to provide a tailwind for the quarterly performance. This comes even as the company's shares, having already advanced roughly 34% since the start of the year, may have priced in much of this positive effect.