Almost all top BP shareholders unhappy with green strategy, claims activist investor

Luke Barr
Sat, March 16, 2024 

BP's chief executive Murray Auchincloss has vowed to continue to pursue his predecessor's investment in renewables - RYAN LIM/AFP via Getty Images

Almost all of BP’s biggest shareholders are unhappy with its shift to green energy, an activist investor has claimed, amid a growing backlash over the oil giant’s focus on net zero targets.

Giuseppe Bivona, chief executive of Bluebell Capital, which has a minority stake in BP, said he had spent the past three weeks talking to many of the company’s top 30 investors.

He said: “With only the exception of one shareholder, I am still to find someone who supports BP in its entirety.”

Bluebell is spearheading a brewing investor revolt after sending a 30-page letter to the FTSE 100 company in January.

In the letter it urged BP to halt investment in renewable energy schemes, prioritise oil and gas production, and rewrite net zero targets to clarify that they will be achieved “in line with society”.

BP has been under increasing pressure over net zero commitments that have allegedly left shareholders £40bn poorer.

Mr Bivona said he plans to share negative feedback with BP on a no-name basis, which he said will “clearly expose them to the fact that many investors are sympathetic to what we are saying”.

He is hopeful this will serve as a “wake-up call” for the company, with Bluebell having previously taken similar action against blue-chip giants Glencore and Danone.

The activist threat represents the first major test for Murray Auchincloss, BP’s new chief executive, who has told staff that he will stick to the green energy plans rolled out by his predecessor Bernard Looney.

One of Mr Bivona’s biggest criticisms of BP is that it has destroyed shareholder value by investing billions of pounds in loss-making renewable energy businesses.

He said: “When you want to deploy £30bn on renewable power at a return of 6pc to 8pc, that is insane. BP is such a poorly managed company.”

Despite the criticism, Mr Bivona has given BP a stay of execution to allow it to respond to Bluebell’s concerns, adding that he was not looking to stir up trouble at the forthcoming shareholder meeting.

He added: “But watch out for the next one.”

Mr Bivona said BP is open to the idea of scrutinising its green energy plans but said the company is too scared to follow through with Bluebell’s requests in case of a backlash from environmentalists.

A BP spokesman said: “We do not recognise the assertions Bluebell has made. In recent weeks and months, we have engaged extensively right across our shareholder base internationally, including with our largest shareholders.

“We have heard clear and widespread support for BP’s strategy and our focus on delivery. Throughout this engagement, we have not heard support for Bluebell’s proposals.”