ISS urges vote against BP board over climate move
Influential proxy advisory firm Institutional Shareholder Services has recommended that shareholders vote against the board of BP, citing concerns over its plan to revoke earlier climate reporting commitments and shift its approach to shareholder meetings.
ISS said BP’s proposal to withdraw two shareholder resolutions—passed in 2015 and 2019 with near-unanimous support—would weaken established climate disclosure expectations within the company, News.Az reports, citing Reuters.
“A particularly compelling argument would be required to justify such a legal revocation, which we believe is unprecedented in the UK context,” ISS said, referring to the proposed cancellation of the earlier climate reporting resolutions.
Those resolutions had required BP to produce company-specific climate disclosures, a practice ISS argues should not be rolled back without strong justification.
The advisory firm also criticized BP’s broader governance proposal to allow online-only annual shareholder meetings, saying it was not convinced by the board’s argument that existing reporting frameworks make the earlier resolutions redundant.
ISS said the board had not provided a sufficiently strong case that removing the disclosures would improve clarity or standardization in reporting, warning investors that the move could undermine transparency.
The recommendation adds pressure on BP as it faces growing scrutiny from institutional investors over how major energy companies balance climate commitments with business strategy in the oil and gas sector.
News.Az
By Aysel Mammadzada
