The Local Authority Pension Fund Forum (LAPFF) has recommended its members support a shareholder resolution at BP’s Annual General Meeting (AGM) that calls for enhanced disclosure on capital discipline.

The resolution comes amid growing concerns that the strategic direction of the firm is increasing financial and climate-related risks for long-term investors, the pool said.

Resolution 24 was coordinated by the shareholder group ACCR and co-filed by several LAPFF member funds with the forum’s support.

It is seeking clearer disclosure on how BP evaluates the cost-competitiveness, execution risk, and long-term value of its oil and has investments, following its decision to increase upstream spending at its 2025 strategic reset.

LAPFF argued these issues were fundamental to shareholder oversight, especially as upstream investment decisions ‘lock in’ emissions trajectories and present long-term stranded asset risk.

The forum expressed concerns about the strategic shift and governance, and recommended that members vote against the re-election of BP chair, Albert Manifold, opoose changes to the Articles of Association permitting virtual-only AGMs, reject the revocation of binding climate disclosure resolutions, and support the shareholder resolution seeking clearer disclosure on capital discipline and upstream investment decisions.

“At a time when the physical repercussions of failing to address planetary heating hit home, expanding high-cost fossil fuel investment without clear evidence of discipline or competitiveness is a material risk to long term savers,” said LAPFF chair, Doug McMurdo.

“Robust corporate governance underpins a credible climate transition, translating ambition into action.

“We will not accept roll-backs on climate plans, which drive escalating emissions and the potential for long term value destruction.

“It is the responsibility of company chairs to ensure clear, consistent leadership that embeds climate resilience across the business for long-term stakeholder value."

---