Due to BP’s decision to downgrade its climate measures, some of the largest pension funds in the UK want to vote against reappointing the company’s chairman.
It follows the energy giant’s reduction in the aim for emissions by the decade’s end.
Ahead of the firm’s annual meeting on Thursday, the five pension schemes, all shareholders in BP, criticised a “failure of governance”.
BP said it valued “constructive challenge and engagement”.
Shareholders originally set an emissions reduction goal in 2022 that included a commitment to reduce greenhouse gas emissions by 35–40% by the end of this decade.
But in order to increase oil and gas production and prolong the lifespan of current fossil fuel projects, BP declared in February that it was now aiming for a 20–30% decrease.
This, according to BP Chief Executive Bernard Looney, was done in response to growing energy security concerns following the invasion of Ukraine.
According to the five pension funds, their vote against Helge Lund, the company’s chairman, was a protest against the conduct of the corporation.
Less than 1% of BP’s total shares are held by the pension funds, which have £440 million invested in the corporation. However, they have a significant voice because they oversee the pensions of more than a third of UK workers.
Story was adapted from BBC